Wedbush sees margin hit on Sleep Numbers from Memorial Day sales

Sleep Number

26/05/2022 20:54

** Wedbush expects deep discounts during Memorial Day to hit
margins on mattress retailer Sleep Number  SNBR.O  
    ** Brokerage says Memorial Day sales, which account for a
large percentage of sales in the quarter, will hit the bed maker
as aggressive promos will dent its cash flow position
    ** Wedbush says on factoring in price increases taken in
2021 and current discounts, average prices are up 6% y/y on
SNBR's core models heading into the Memorial Day Weekend, noting
financing costs would rise with higher prices
    ** Wedbush's internal checks also show that Purple
Innovation  PRPL.O  and other direct-to-consumer bed-in-box
companies have increased promotions
    ** As of last close, SNBR is down 38.3% this year and PRPL
is off 57.7% 

 (Reporting by Nandhini Srinivasan)
 ((Nandhini.Srinivasan@thomsonreuters.com;))