Second quarter net sales reflected a $25 million net sales shift to the third quarter as a result of an inventory shortage from one of its suppliers that is now resolved.
Moving a little further down the income statement, gross profit increased 3% to $177 million, with its gross margin rate of 62.0% up 10 basis points versus the prior year.
Also, the company generated $89 million in net cash from operating activities for the first six months of 2017, compared with $47 million for the same period last year. Meanwhile, the company ended the quarter with $14 million of borrowings against the $153 million revolving credit facility, as planned.
Looking ahead to the full 2017 year, the company reaffirmed earnings guidance of $1.25-1.50, which falls in-line with expectations.
The outlook continues to include an estimated $0.15 to $0.22 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 4 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.
The company said, "As we worked through an inventory shortage from one of our new suppliers during the quarter, about a week's worth of deliveries shifted into the third quarter. Our underlying demand trends in the second quarter exceeded our expectations. With our growth initiatives delivering consistent traffic and sales performance, we are reiterating our full-year EPS outlook."