Select Comfort Stock Plummets

The company is looking to reduce expenses


Mattress Photo 300x238 Select Comfort Stock PlummetsInvestors fled Select Comfort Corporation (SCSS) shares on Thursday after the company reported weaker-than-expected results and lowered its forecast for the year. The company’s shares dropped more than 23% during morning trading.

The mattress maker and retailer posted third-quarter earnings of $20.3 million, down 23% from $26.2 million during the same period last year. EPS came in at 23 cents, far below the 43 cents that Wall Street has expected. Sales climbed to $263.7 million, up 7%, but still less than the $277.5 million that analysts had forecast, the Associated Press notes.

danger falling on head 120 Select Comfort Stock Plummets
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Select Comfort cut its earnings outlook for the year from previously issued guidance of between $1.30 and $1.45 a share, to between $1.14 and $1.22 a share. That is less than the consensus estimate of $1.33 a share among analysts.

CEO Shelly Ibach indicated that the company is looking to control costs due to an uncertain economic environment. Select Comfort’s company-owned retail stores saw sales drop 1% compared to the prior year. The company operates about 400 locations nationwide.

Select Comfort competes with Tempur Sealy International (TPX) and Mattress Firm Holding Corp. (MFRM), which fell about 4% and 5%, respectively, in Thursday morning trading.

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