Select Comfort Issues 2017 Earnings Outlook - Quick Facts

(RTTNews) - Select Comfort Corp. (SCSS) announced the company expects to generate full-year 2017 earnings per share of between $1.20 and $1.40, including $0.15 to $0.22 of incremental costs related to the launch of new Sleep Number 360 smart bed line and the redesign of logistics network. The outlook assumes mid- to high-single digit sales growth for the full year and a 3% to 4% increase in store count in 2017, building on 11% store count growth in 2016.

Fourth-quarter net sales increased 46% to $313 million, including a comparable sales increase of 34% and 12 percentage points of growth from net new stores; fourth quarter of prior year was impacted by ERP system implementation. Profit per share were $0.25, compared with a loss per share of $0.42 for the prior year's fourth quarter.

Shelly Ibach, CEO of Select Comfort, said: "While our fourth quarter sales and earnings were below our expectations, we begin 2017 well positioned to accelerate earnings growth, cash generation and returns to shareholders. Thus far in 2017 traffic and sales are on target, which we attribute to a steadier consumer environment and improved marketing effectiveness. All of the investments we have made over the past five years are coming together with the roll out of our revolutionary new Sleep Number 360™ smart beds, which will enable both continued market share growth and greater business leverage."