Sleep Number Q4 sales beat estimates on new product launch

Sleep Number

12/03/2026 11:09

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.)