Select Comfort cautions on 4Q earnings
Select Comfort expects 4th-quarter earnings to come in below its previous forecast
MINNEAPOLIS (AP) -- Select Comfort now anticipates that its fourth-quarter earnings per share will come in below the low end of its prior forecast because sales from Cyber Monday through the end of December missed its targets.
Shares dropped in premarket trading on Monday.
Select Comfort Corp.'s previous outlook was for earnings between 18 cents and 26 cents per share. Analysts surveyed by FactSet expect earnings of 21 cents per share.
President and CEO Shelly Ibach said in a statement that the slowdown in sales after Thanksgiving "reflected a tepid retail holiday shopping season" and cautioned that the company anticipates such conditions continuing this year and is planning accordingly for it.
The company said its guidance had assumed a low double-digit rise in quarterly revenue and a mid-single digit increase in company-controlled sales at stores open at least a year. Revenue rose 4 percent in the quarter to $231 million, while sales at stores open at least a year were flat. Wall Street was looking for revenue of $241.7 million.
Select Comfort, which sells beds, pillows and other bedding products, plans to report its fourth-quarter results on Feb. 5.
Its stock declined $2.75, or 12.9 percent, to $18.60 about 30 minutes before the market open.
