8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  August 22, 2011

SELECT COMFORT CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation or organization)

0-25121	41-1597886
(Commission File No.)	(IRS Employer Identification No.)

9800 59th Avenue North, Minneapolis, Minnesota 55442

(Address of principal executive offices)          (Zip Code)

(763) 551-7000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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ITEM 7.01. REGULATION FD DISCLOSURE.

On August 22, 2011, Select Comfort Corporation prepared an investor presentation to be presented during scheduled investor meetings.  The information to be presented is furnished as Exhibit 99.1 to this Current Report on Form 8-K.  The presentation will be posted in the Investor Relations section of www.sleepnumber.com.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits.

Exhibit 99.1 Investor Presentation, dated August 22, 2011.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SELECT COMFORT CORPORATION
	(Registrant)
Dated:  August 22, 2011	By:  /s/ Mark A. Kimball
	Name:  Mark A. Kimball
	Title:    Senior Vice President

INDEX TO EXHIBITS

The exhibit listed in this index is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated by reference into any document filed under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except as otherwise expressly stated in any such filing.

Exhibit No. Description of Exhibit

99.1 Investor Presentation, dated August 22, 2011.

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EX-99.1

Exhibit 99.1

August 2011

Sleep Number . . .

Transforming a large, undifferentiated industry

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Forward Looking Statements

Statements used in this news release relating to future plans, events, financial results or performance
are forward-looking statements subject to certain risks and uncertainties including, among others,
such factors as current general and industry economic trends; consumer confidence; the
effectiveness of our marketing and sales programs, including advertising and promotional efforts;
consumer acceptance of our products, product quality and brand image; our ability to continue to
improve our product line and product quality; warranty obligations; availability of attractive and cost-
effective consumer credit options; execution of our retail store distribution strategy; rising commodity
costs and other inflationary pressures; our dependence on significant suppliers, including several
sole-source suppliers and the vulnerability of suppliers to recessionary pressures; industry
competition; risks of pending and potentially unforeseen litigation; increasing government
regulations; the adequacy of our management information systems to meet the evolving needs of our
business and evolving regulatory standards; our ability to attract and retain key employees; and
uncertainties arising from global events, such as terrorist attacks or a pandemic outbreak, or the
threat of such events. Additional information concerning these and other risks and uncertainties is
contained in our filings with the SEC, including our Annual Report on Form 10-K, and other periodic
reports filed with the SEC. The company has no obligation to publicly update or revise any of the
forward-looking statements in this presentation.

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Large industry

. . . “one-size-fits-all”

New advances . . .

brand/distribution/product

4

Sleep Number . . .
A unique and highly profitable growth opportunity

•Sustained Growth

–Demonstrated ability to deliver compelling top line growth

–Clear upside potential . . . mid to high teens comp expected balance of 2011

•Robust Profitability

–Model driving profit growth in excess of top line; accelerating earnings

–Long term 15-20% EPS growth potential, higher near term

•Strong Cash Flow

–Strong cash generation self-funding growth investments

–Substantial liquidity, no debt

•New advances = opportune time

–Marketing: recently consolidated brand and evolving media

–Distribution: refocused and ready to expand

–Products: newly enhanced and innovating

Differentiated & affordable products that
deliver real consumer benefits

Scientifically proven benefits

than traditional mattresses

Classic Series

c2

$999

c3

$1,299

c4

$1,599

p5

$2,099

p6

$2,599

p7

$2,899

i8

$3,199

i10

$4,699

Revolutionary product within a large,
“one-size-fits-all” industry

$6 Billion U.S. Wholesale Industry1

Sleep Number competes in
the industry sweet spot

•30 years consistent industry
growth, reset in ’08/’09 . . .
6% CAGR

•7-8% industry growth in 2011
projected by ISPA

•Premium (>$1,000) outpacing total
industry growth

•Specialty also outpacing with
consumer trend toward better sleep

•Significant growth opportunity in
adjustable “air” segment

•SCSS = 5% market share in $’s;
lead markets 2-3X

Innerspring

Foam

Air

1Total Wholesale Sales based on ISPA 2010 Annual Report and ISPA Oct. 2010
Forecast. Premium percentages for 2011-2012 are company estimates.

Unique, vertically-integrated business model

Differentiated end-to-end brand experience

•375 stores nationwide, supported by

sleepnumber.com and call center

•Knowledgeable, tenured “Sleep Experts”

deliver best in class store experience

•National customer service and “white glove”

home delivery

Flexible, cash advantaged supply chain

•Two plants (UT & SC), 10 hubs and 127 spokes

support national distribution

•Build-to-order, JIT inventory translates to minimal

inventory (15 turns in manufacturing)

•Negative 30-day cash conversion cycle

- Cash receipt at time of order

- Payables cycle tied to time of manufacture

Sales and profit growth
.. . . proven and better positioned than ever

NOP Rate(4.9%)5.5%8.6%8.0%9.2%9.7%5.4%(5.9%)4.4%8.6%10.9%

1

1Q2-11 represents trailing 12 months

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Sales growth driven by integrated top line strategy

•Awareness and Consideration

–Superior product, but too few know about it or where to find it

•Product

–Steady pipeline of innovative products for new and existing customers

•Marketing

–Optimizing creative, media levels, media mix and digital

•Distribution

–Store location, format and design; market-focused expansion

New advances to continue profitably building a
national iconic brand

•100% Sleep Number brand - leverage

•Advertising focused on unique product &
consumer benefits, only at Sleep Number

•Value and urgency proven in consumer
events

•Digital and social media advancing

•Local marketing, with national overlay

•Market-based development

–Focused investment for scale and return

–Accelerating awareness and share growth

•Real estate strategy

–Improving mall locations

–Non-mall pilot - awareness and flexibility

•Store base ready to expand; incremental
source of growth

•Evolving store designs - experiential, unique

Marketing optimization

Distribution leverage

Sales growth and leverage . . . just getting started

Today, every $100,000
increase in average
sales per store

•$38 million total sales (+1 bed/store/week)

•~ $11 million operating profit

•~ $0.13 incremental EPS

Net Sales

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Profit margin growth accelerates earnings

	20091	20111	Potential by 2015	Drivers
Gross margin	60%	63%	#2-3 pts	•Supply chain leverage & efficiencies •Product innovation & pricing
Selling & Marketing %	52%	43%	$2-5 pts	•Store base leverage •Media mix & efficiency
G&A/other %	10%	9%	$0-1 pts	•Focus on core business
Operating margin	(3%)	11%	> 15%

1Trailing 12 months ended second quarter

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Strong cash flow to self-fund organic growth

Robust cash generation

Rock solid balance sheet

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Investment Summary . . . why now?

•Succeeding in the current macro-economic environment

–Market share opportunity, regardless of total industry growth

–Product delivers real consumer benefits and value

–Ability to be nimble with short lead-time media and promotions

–Strong balance sheet - $100+ million cash, no debt

–Management team experience & expertise during 2008-2009 economic crisis

•New growth opportunities

–Distribution expansion through store growth, including new non-mall

–Market-based development and increasing efficiency of national media

–Pricing opportunities within our competitive set as we accelerate demand

•Cash to fund further opportunities

–Increasing ability to accelerate growth investments

–Other shareholder return acceleration under evaluation

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Sleep Number . . .
A unique and highly profitable growth opportunity

•Sustained Growth

•Robust Profitability

•Strong Cash Flow

•New advances = opportune time

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Appendix

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Experienced Management Team

Name	Age	Title	# yrs w/ SCSS	Previous experience
Bill McLaughlin	55	President & CEO	11	PepsiCo/Frito-Lay
Shelly Ibach	52	COO	4	Macy’s, Target Corporation
Kathy Roedel	50	EVP, Chief Technology & Services	6	GE Health Care
Wendy Schoppert	44	EVP & CFO	6	U.S. Bank, America West, Northwest, AMR
Mark Kimball	53	SVP & General Counsel	12	Oppenheimer, Wolff & Donnelly
Karen Richard	41	SVP, Human Capital	15	TCF Financial Corp

#1 Growth Opportunity . . .
Awareness & Consideration

Growth Drivers

•Marketing:Creative, media mix, media levels, digital

•Distribution:Location, format and number of stores; store design

•Products:Steady pipeline of innovative products for new and existing customers

Unaided Brand Awareness

Unaided Store Awareness

Brand

Store

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Market performance demonstrates tight
correlation of awareness and market share growth

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What

• Three year market level goals

–Double market share to >10%

–Achieve above average market profit rate

How

• Aggressive media investment

–Compete on share of voice

• Real estate

–Reposition existing stores to align to target
customer and eliminate trade area overlap

–Add stores

• Other tests

–Promotion, marketing, staffing and
compensation

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Solid execution has returned company to growth

*As adjusted for one time items in 2008/2009

Significant Returns in 2010: ROA 21%, ROE 72%

Solid Sales Growth (1 Year & 2 Year Comps)

(TTM$ in mm)

22

Favorable store economics provide margin upside

*Excluding national media and customer support