Sleep Number stock extends slump as co reportedly seeks rescue loan

Sleep Number

02/04/2026 14:52

** Shares of mattress seller Sleep Number SNBR.O falling for 12th straight session and down 27% at $1.25 on Fri as co reportedly seeking rescue loan

** SNBR stock, sitting at about 17-yr low, has shed >80% YTD

** SNBR seeking rescue financing to stave off other options including a potential bankruptcy, Bloomberg News reported, citing people familiar

** Co's banker, Guggenheim Partners, has been reaching out to investors to gauge interest in providing fresh capital, including a priming loan of about $50 mln, said the people, who asked not to be identified discussing a private matter, according to the report

** In its 2025 10-K filing last month, co disclosed that there was "substantial doubt" about its ability to continue as a going concern, and warned without obtaining additional capital to fund its operations, it will have to explore alternative actions, including filing for bankruptcy

** In Mar, Minneapolis, Minnesota-based co reported 2025 rev dropped 16% y/y to $1.4 bln, pointing to ongoing industry demand pressure and lower store traffic

** All 4 analysts covering SNBR rate stock "hold" and median PT is $4.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))