On Thursday, shares of Sleep Number bed manufacturer Select Comfort Corp. (SCSS - Free Report) are skyrocketing, up over 23% in late-morning trading after the company reported better-than-expected first-quarter fiscal 2017 financial results.
Earnings per share more than doubled from the prior-year period, coming in at 56 cents per share and also surpassing the Zacks Consensus Estimate of 46 cents per share. Net sales grew 12% year-over-year to $393.9 million, beating our consensus estimate as well. Comparable store sales during Q1 increased 3% thanks to growth in new stores and steady mall traffic.
Gross profit came in at $246.5 million, expanding 340 basis points (bps) to 62.6% and increasing 17.9% from the year-ago period.
"Consumers are responding enthusiastically to our brand and differentiated products. Our investments over the past few years have made us a stronger competitor and this is evident in our first quarter results," said Shelly Ibach, president and CEO of Plymouth-based Select Comfort, in a statement.
Looking ahead to Q2, Select Comfort is planning a phased-in introduction of the Sleep Number 360 smart bed, and Ibach told analysts on a conference call Wednesday that pilot tests of the bed in limited stored showed positive customer reaction to the technology.
Select Comfort raised its 2017 full-year outlook, and the company now expects to earn between $1.25 and $1.50 per share, compared to its previous guidance of $1.20 to $1.40 per share; this outlook also includes costs of 15 to 22 cents per share associated with the launch of the Sleep Number 360.
Currently, SCSS is a #3 (Hold) on the Zacks Rank, and has gained over 14% year-to-date.
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