Sleep Number stock hits 52-week low at $5.97 amid sales slump

In a challenging retail environment, Sleep Number Corporation (NASDAQ:SNBR) stock has tumbled to a 52-week low, touching down at $5.97. With a market capitalization of $136 million and annual revenue of $1.68 billion, the company maintains impressive gross profit margins of nearly 60%. According to InvestingPro analysis, the stock appears undervalued at current levels. The company, known for its innovative adjustable beds and sleep technology, has faced significant headwinds over the past year, reflected in a stark 1-year change with the stock plummeting by -59.92%. This downturn has alarmed investors and analysts alike, as Sleep Number struggles to regain its footing in a competitive market that has shown little mercy to retailers unable to adapt swiftly to changing consumer behaviors and economic pressures. InvestingPro analysis reveals the stock’s RSI indicates oversold territory, with a beta of 2.15 suggesting high volatility. Discover 12 additional exclusive ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Sleep Number Corporation reported its fourth-quarter 2024 earnings, showing a slight earnings per share (EPS) beat but a significant revenue shortfall. The company’s EPS was -0.21, marginally better than the forecast of -0.22, while revenue fell short at $377 million compared to an expected $413.17 million. The company’s adjusted EBITDA improved by 43% to $26 million, highlighting effective cost management despite a 12% year-over-year decline in net sales. Sleep Number’s revenue miss has raised concerns among investors, particularly given the challenging market conditions. The company has also announced a major restructuring of its Board of Directors, with several retirements planned as part of an agreement with Stadium Capital Management, LLC. This move is intended to create a more agile board to navigate the market and enhance shareholder value. Additionally, Raymond (NSE:RYMD) James maintained its Market Perform rating on Sleep Number, noting that the company’s demand trends have underperformed the industry. The firm highlighted the lack of guidance for 2025 due to an upcoming CEO transition, which adds to the uncertainty regarding the company’s recovery trajectory.

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