Reuters: Global Markets: Select Comfort misses estimates as marketing shift drags

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Select Comfort misses estimates as marketing shift drags Jul 17th 2013, 21:04 Wed Jul 17, 2013 5:04pm EDT (Reuters) - Specialty mattress maker Select Comfort Corp (SCSS.O) reported quarterly results below analysts' expectations, pulled down by higher marketing and research expenses, sending its shares down as much as 9 percent after the bell. The company, known for its Sleep Number line of adjustable-firmness mattresses, said in April it would revert to its earlier marketing strategy after a shift only reduced its exposure to already cautious customers. Marketing costs jumped 12 percent to $98.4 million in the latest quarter, while cost of research and development doubled to $2.6 million. Net income fell 42 percent to $9.9 million, or 18 cents per share, in the second quarter from $17 million, or 30 cents per share, a year earlier. Revenue rose 1 percent to $207.4 million. Analysts on average expected earnings of 24 cents per share on revenue of $210.8 million, according to Thomson Reuters I/B/E/S. Select Comfort reaffirmed its full-year earnings of $1.30 to$1.45 per share. The company cut its guidance in April after sales were hit due to its new advertising strategy. Shares of the company were down 7 percent at $24.78 in post-market trading. (Reporting by Arpita Mukherjee and Sagarika Jaisinghani in Bangalore; Editing by Anthony Kurian)

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