Sleep Number Q4 sales beat estimates on new product launch

Reuters03-12
<a href="https://laohu8.com/S/SNBR">Sleep Number</a> Q4 sales beat estimates on new product launch 

Overview

  • U.S. mattress retailer's Q4 sales fell 8% but beat analyst expectations

  • Company posted a wider Q4 net loss, driven by lower sales and tax adjustment

  • Sleep Number realized $185 mln in annualized cost savings as part of turnaround strategy

Outlook

  • Sleep Number anticipates double-digit adjusted EBITDA growth in 2026

  • Company expects strong sales and margins from new beds launching in March

  • Sleep Number is implementing $50 mln of annualized fixed cost savings in 2026

Result Drivers

  • INDUSTRY DEMAND PRESSURE - Co said Q4 sales decline was driven by ongoing industry demand pressure and lower store traffic

  • INVENTORY CHARGE - Q4 gross margin fell due to $9.6 mln inventory obsolescence charge linked to new product launch

  • NEW PRODUCT LAUNCH - ComfortMode bed launch exceeded expectations, outselling plan by 3.5 times with stronger margins

Company press release: ID:nBwc5Gm8Ja

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Beat

$347 mln

$328.67 mln (4 Analysts)

Q4 Net Income

-$59 mln

Q4 Gross Margin

55.60%

Q4 Gross Profit

$193 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the home furnishings peer group is "buy."

  • Wall Street's median 12-month price target for Sleep Number Corp is $11.00, about 139.7% above its March 11 closing price of $4.59

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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