MINNEAPOLIS -- In a story Oct. 17 about Select Comfort's Corp.'s earnings, The Associated Press reported erroneously that the company expects fourth-quarter sales to grow at least 20 percent, which would result in 2012 revenue of about $927.3 million. The correct full-year sales amount is $941.4 million.
A corrected version of the story is below:
Select Comfort shares slip on plans for bigger spending
Select Comfort beats in 3Q, raises full-year forecast but shares dip on plans for bigger investments in 4th quarter
MINNEAPOLIS (AP) _ Select Comfort Corp.'s shares slipped in after-hours trading Wednesday despite the mattress company beating analyst estimates and raising its full-year forecast.
Select Comfort, known for its Sleep Number beds, said that its third-quarter profit increased by 52 percent on stronger sales. It also raised its full-year outlook. But revenue guidance was slightly shy of market expectations and President and CEO Shelly Ibach said that the company would bump up spending in the fourth quarter to promote its brand to customers and develop markets. Shares dipped 4 percent in aftermarket trading.
Mattress makers have grown intensely competitive in recent years as consumers curbed big-ticket spending. However, Select Comfort has used new products, aggressive marketing and added stores to get an edge. This is the second time that the company has raised its full-year forecast.
Select Comfort made $26.2 million, or 46 cents per share, in the quarter that ended Sept. 29. That's up from $17.2 million, or 31 cents per share, in the same quarter last year. Revenue increased 24 percent to $246.8 million.
Analysts expected the company to earn 41 cents per share on revenue of $244.9 million, according to FactSet.
Select Comfort said revenue from stores open at least a year increased 21 percent as more shoppers spent more in its stores. That is a key indicator of a retailer's financial performance because it strips away the impact of recently opened or closed stores.
The company operated 394 stores nationwide at the end of the quarter and expects to have as many as 412 by the end of the year.
Select Comfort expects to earn $1.51 to $1.53 per share for the year on an adjusted basis, well above the $1.41 expected by analysts. The company sees total sales growth for the fourth quarter of at least 20 percent. That would bring full-year sales to about $941.4 million, just shy of the $946.4 million that analysts have forecast for the year.
Shares of Select Comfort rose 43 cents to close at $32.63. They fell $1.23 to $31.40 in after-hours trading.