July 16--Select Comfort Corp.'s latest quarterly profit fell 14 percent but beat investors' expectations for the first time since 2012, sending its share price sharply higher in after-hours trading.
The Plymouth-based maker and seller of air-filled beds said Wednesday it earned $8.5 million for its second quarter, which ended June 28. That amounted to 16 cents a share, above analysts' forecast of 14 cents.
Sales rose 13 percent to $235 million, also above analysts' forecast of $219 million.
The performance marked the first time since the third quarter of 2012 that Select Comfort beat expectations. Its shares rose 13 percent in after-hours trading after the news was announced following the end of regular trading.
The company has struggled with faulty or expensive advertising campaigns and store expansion expenses that grew faster than expected. It cited higher sales, marketing and administrative expense for its profit drop in the latest period.
The company said capital expenditures rose $3 million to $40 million during the quarter as it continued to roll out new and renovated stores.
Executives reiterated the 2014 earnings outlook of $1.07 a share. They said the company will add 20 to 30 net new stores during 2014, which should give it a total of 460 to 470 stores nationwide.
CEO Shelly Ibach said in a statement that the company expects to spend $70-$80 million in full-year 2014 capital expenditures. About half of that will be related to systems infrastructure while another third will be related to market development. The remainder will be devoted to product innovations and other initiatives.
Dee DePass -- 612-673-7725
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