Sleep Number Opens First Store in Hawaii on Heels of Strong Quarter

05:59 12/13/2017

Sleep Number SNBR  recently celebrated the opening of its first retail store in Hawaii. Now, Sleep Number customers in all 50 states can shop in-store for Sleep Number’s proprietary and innovative solutions.

“I’m extremely proud of opening a store in our 50th state – it’s a significant milestone for our brand, especially amidst a challenging retail environment,” said Andy Carlin, Chief Sales and Service Officer at Sleep Number. “With our smart, effortless sleep technology, we are improving our customers’ well-being by redefining quality sleep. And we are thrilled to bring that to the state of Hawaii, and to improve even more lives by enhancing their sleep quality.”

Before officially opening its doors, Sleep Number hosted a traditional Hawaiian blessing, which honors local culture and helps usher in goodness, success and growth to the store. The new 3,600 square-foot store opened Friday, Dec. 8, and employs four sleep experts and two home-delivery technicians.

You may remember Sleep Number SNBR  as Select Comfort Corporation with the ticker symbol SCSS, but they changed it on November 1st of this year.

“The alignment of our corporate name with our renowned consumer brand is an important progression in our company’s continued evolution as the sleep innovation leader,” said Shelly Ibach, president and chief executive officer of Sleep Number. “With our smart, effortless sleep technology, we are improving our customers’ well-being by redefining quality sleep.”

Before their name change, they announced strong third quarter results for the period ended September 30th, 2017.

• Net sales increased 9% to a quarterly record of $403 million, including 6 percentage points of growth from stores opened in the last twelve months and a 5% comparable sales increase

• Gross profit increased 9% to $253 million, with a gross margin rate of 62.9%

• Earnings per diluted share increased 11% to $0.62, compared with $0.56 in the prior year’s quarter

• Generated a record $176 million in net cash from operating activities for the first nine months of 2017, compared with $145 million for the same period last year

• Invested $38 million in capital expenditures and returned $115 million of cash to shareholders through share repurchases during the first nine months of 2017 compared with $39 million and $95 million, respectively, for the same period last year

• Return on invested capital (ROIC) was 13.8% for the trailing twelve-month period, well above our cost of capital

The company updated its outlook for 2017 earnings per diluted share to a range of $1.30 to $1.45 per share. The outlook includes an estimated $0.18 EPS impact from incremental costs related to the launch of the Sleep Number 360™ smart bed line and the evolution of our supply chain. The outlook assumes high single-digit sales growth, including 5 to 6 percentage points from net new store openings and low single-digit comp store growth. The company anticipates 2017 capital expenditures to be approximately $55 million.

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