Sleep Number (NASDAQ:SNBR) Releases Quarterly Earnings Results, Misses Expectations By $1.85 EPS

Sleep Number (NASDAQ:SNBR) posted its earnings results on Tuesday. The company reported ($2.19) EPS for the quarter, missing the consensus estimate of ($0.34) by ($1.85), FiscalAI reports. The firm had revenue of $318.99 million for the quarter, compared to analysts’ expectations of $320.72 million.

Here are the key takeaways from Sleep Number’s conference call:

• Sleep Number secured an agreement with lenders that adds about $55 million of near-term liquidity, including a new $25 million term loan, and provides covenant relief through June 30. Management said this buys time to pursue a longer-term capital structure solution, including strategic and financing options.
• Q1 results were in line with expectations, with net sales of $319 million and adjusted EBITDA of $6 million, ahead of internal plan. Demand improved through the quarter, and March saw about 6% year-over-year demand growth, the first comparable growth in two years.
• The company said its full product reset was completed quickly and early signals from the new lineup are encouraging. ComfortMode showed stronger customer satisfaction, lower return rates, and the new lineup delivered 12% higher ARU in stores with the new assortment versus legacy stores.
• Management highlighted improving marketing effectiveness, including a better website experience, stronger organic search, and rising AI citations. They also pointed to strong early response to the new brand campaign, Travis Kelce content, and a Costco test that is already generating encouraging sales and visibility.
• Cost actions remain a major part of the turnaround, with more than $235 million of annualized savings identified since early 2025 and about $200 million already executed. Gross margin was pressured by product mix and legacy inventory discounting, but the company expects margins to improve as the old inventory clears and the new mix scales.

Sleep Number Stock Down 20.9%

Shares of NASDAQ SNBR traded down $0.51 on Tuesday, reaching $1.94. 583,139 shares of the company’s stock traded hands, compared to its average volume of 1,913,673. The business’s 50 day simple moving average is $2.93 and its two-hundred day simple moving average is $6.11. Sleep Number has a 12 month low of $1.06 and a 12 month high of $13.94. The company has a market cap of $44.28 million, a price-to-earnings ratio of -0.33 and a beta of 2.71.

Analyst Ratings Changes

A number of equities analysts recently issued reports on SNBR shares. Piper Sandler lowered their price objective on shares of Sleep Number from $12.00 to $5.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Wall Street Zen downgraded Sleep Number from a “sell” rating to a “strong sell” rating in a report on Sunday, April 19th. Finally, UBS Group decreased their target price on Sleep Number from $10.00 to $4.00 and set a “neutral” rating for the company in a research report on Friday, March 13th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $4.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sei Investments Co. bought a new stake in Sleep Number in the second quarter worth $73,000. Sherbrooke Park Advisers LLC purchased a new position in shares of Sleep Number in the 3rd quarter worth about $87,000. Bank of Montreal Can purchased a new position in shares of Sleep Number in the 4th quarter worth about $89,000. Worth Venture Partners LLC bought a new position in Sleep Number in the 3rd quarter worth about $105,000. Finally, Virtu Financial LLC purchased a new stake in Sleep Number during the 3rd quarter valued at about $111,000. Institutional investors own 85.67% of the company’s stock.

Sleep Number Company Profile

Sleep Number Corporation (NASDAQ: SNBR) is a Minneapolis?based company specializing in the design, manufacture and retail of adjustable air mattresses and bedding products. The company’s flagship Sleep Number® bed features dual air chambers that allow each side of the mattress to be tailored to an individual’s preferred firmness, supported by integrated SleepIQ® technology. This proprietary monitoring system tracks biometric data such as heart rate, breathing and motion, delivering personalized sleep insights through a connected app.

Founded in 1987 as Select Comfort, the business pioneered adjustable air mattress technology and has since grown into a direct-to-consumer retailer.