Shares of Select Comfort Corp. (NASDAQ: SCSS) touched a new 2-year high of $17.50 on Thursday, as its first quarter earnings and revenue exceeded Street view.

The Minneapolis, Minnesota-headquartered mattress maker reported first quarter earnings of $16.6 million or 30 cents a share, up from $7.8 million or 14 cents a share last year.

Sales for the quarter grew 22 percent to $193.07 million, driven by a company-owned comparable sales growth of 26 percent with the average sales-per-store over the past 12 months improved 26 percent to $1.4 million. Analysts had expected earnings of 19 cents a share on revenue of $166.56 million for the first quarter.

Gross profit margins increased 166 basis points to 63.8 percent, which reflects strong product mix offset somewhat by modest commodity-cost increases.

Sales and marketing costs increased 15 percent to $80.3 million, while general and administrative expenses rose to $15.6 million from $13.1 million. Capital expenditures rose to $2.7 million from $1.0 million.

Cash flows from operating activities were $32.2 million in the first quarter, up from $30.4 million last year. As of the end of the quarter, cash and cash equivalents totaled $102 million and the company had no borrowings under its revolving credit agreement. The company opened 1 store during the quarter, but closed 12 stores compared to last year's closing of 4 stores.

Looking forward, the company increased its fiscal 2011 earnings guidance to range of 85 cents to 93 cents a share from previous forecast of 68 cents to 74 cents a share, while Street analysts predict 71 cents a share.

The company said the revised outlook assumes stability in consumer-spending patterns, company-owned comparable sales growth in the mid-teens, and profit growth of about 30 percent to 45 percent for the duration of the year.

The company said increasing inflationary pressures could adversely impact consumer demand through the balance of the year. The company’s long-term expectation for earnings per share growth remains between 15 percent and 20 percent per year.

The company expects to end 2011 with about 380 stores after planned store openings and closings. The company anticipates that total 2011 capital expenditures will be about $25 million to $30 million, reflecting a total of 40 to 50 store actions (remodels and relocations), along with continued investments in marketing and information systems.

The momentum of the first quarter allowed us to advance initiatives designed to continue to broaden awareness and consideration for the Sleep Number brand and enhance customers’ store experience in order to drive long-term growth. We expect our efforts to generate strong earnings growth over the balance of the year as well as provide for continued investment in growth opportunities, said Bill McLaughlin, chief executive officer of Select Comfort.

Select Comfort stock gapped open sharply higher April 21 at $16 compared to previous day's close of $13.27. The stock touched a new 2-year high of $17.50 on Thursday.

The stock closed Thursday's regular trading up 30.29 percent at $17.29 on the NASDAQ Stock Market with a record volume of 6.31 million shares. The stock has grown from $0.75 on April 17, 2009 to $17.29 on April 21, 2011. The stock traded between $4.92 and $17.50 during the past 52 weeks.