Mattress maker Sleep Number Q3 sales miss estimates due to lower volume and reduced store count

Sleep Number

05/11/2025 12:09

Overview

Sleep Number Q3 sales down 19.6%, missing analyst expectations

Adjusted EPS for Q3 missed consensus estimates

Company secured bank agreement extension through 2027 for financial flexibility

Outlook

Company revises 2025 net sales outlook to approximately $1.4 bln due to pressure on business

Sleep Number expects 2025 gross profit margin to be approximately 60%

Company anticipates 2025 adjusted EBITDA of approximately $70 mln

Result Drivers

SALES DECLINE - Net sales fell 19.6% due to lower volume and reduced store count

COST REDUCTIONS - Operating expenses reduced by $44.8 mln, driven by lower marketing, selling, and administrative expenses

TURNAROUND STRATEGY - Co is focusing on product, brand positioning, and distribution to drive demand

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$343 mln
$364.10 mln (4 Analysts)
Q3 Adjusted EPS
Miss
-$1.73
$0.20 (4 Analysts)
Q3 Net Income
-$40 mln
Q3 Gross Margin
59.90%
Q3 Gross Profit
$205 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 $7.50, about 26.7% above its November 4 closing price of $5.50

The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 157 three months ago

Press Release: ID:nBw5JLB9da

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