Symbol Lookup
Register | Login

Pre Market | Dow Jones | Gold | Newsletters | Learn

Select Comfort Q4 Outlook Weak, FY Guidance Slashed, Shares Hammered

Thursday, October 17, 2013 7:07 AM
Select Comfort Corp. (NASDAQ: SCSS) said on Wednesday that fiscal third quarter earnings dropped 23% as higher operating costs put the pressure on the bottom line, masking improvement in sales. Shares tumbled more than 25% in aftermarket hours on Wednesday as both core earnings and revenue missed analysts’ expectation. The Company also slashed its outlook for the full fiscal year. The mattress maker now anticipates earnings of $1.14 to $1.22 a share for the fiscal 2013, down from its previous estimate of $1.30 to $1.45 a share. For the current quarter, the Company expects earnings to be in the range of 18 cents to 26 cents a share, which is below analysts’ estimate of 32 cents a share, according to a poll conducted by Reuters. Speaking to analysts in a conference call, Select Comfort Corp.’s President and Chief Executive, Shelly Ibach said, "The consumer responded positively to our product innovations and exclusive retail experience as evidenced by market-share gains along with favorable operational and customer-focused metrics," “However, our execution was muted by a progressively more challenged macro-economic environment, resulting in performance below expectations” added Ibach. For the latest period, Select Comfort posted an income of $20.3 million or 36 cents a share compared to a profit of $26.2 million or 46 cents a share, in the year-ago period. Revenue rose 6.8% to $264 million. Analysts surveyed by Thomson Reuters had forecasted earnings of 43 cents a share on revenue of $277 million. Gross margin contracted to 63.1% from 65.1% while operating costs rose 13% as sales and marketing expenses climbed 16%.  Same-store-sales slipped 1% in the fiscal third quarter.  

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2015 the year you get RICH!

Latest Headlines

Greece to unveil painful 2016 draft budgetGreece to unveil painful 2016 draft budget
ATHENS (Reuters) - Greece will unveil a painful 2016 draft budget on Monday meant to satisfy international creditors, projecting the economy will stay in recession next year before returning to grow...
Asia stocks rise as weak U.S. jobs dampen prospects of near-term Fed hikeAsia stocks rise as weak U.S. jobs dampen prospects of near-term Fed hike
TOKYO (Reuters) - Asian stocks rose early on Monday after prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of Friday`s weaker-than-expected U.S. employment data. ...
Dollar nurses losses after downbeat jobs reportDollar nurses losses after downbeat jobs report
TOKYO (Reuters) - The dollar nursed losses on Monday, edging away from a nearly two-week low against a basket of currencies marked in the previous session after weak U.S. jobs data led traders to pa...
Global regulators finalize new capital rule for big insurersGlobal regulators finalize new capital rule for big insurers
LONDON (Reuters) - The world`s nine biggest insurance companies will have to hold more capital under new rules just finalised by global regulators that aim to prevent taxpayer bailouts of the indust...
Bernanke: More execs should have faced prosecution for 2008 crisis - USA TodayBernanke: More execs should have faced prosecution for 2008 crisis - USA Today
WASHINGTON (Reuters) - Former Federal Reserve Chairman Ben Bernanke said in a newspaper interview published on Sunday that more corporate executives should have been prosecuted for their actions leadi...

Loading Headlines...

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.

Learn the Stock Market

Sharper your stock trading skills with our stock market education section.