Sleep Number stock hits 52-week low at $8.09 amid market challenges

Published 06/03/2025, 15:40
Sleep Number stock hits 52-week low at $8.09 amid market challenges

In a challenging market environment, Sleep Number Corporation (NASDAQ:SNBR) stock has touched a 52-week low, dipping to $8.09, with a market capitalization now at just $200 million. According to InvestingPro analysis, the company’s current financial health score is rated as WEAK, with short-term obligations exceeding liquid assets. The company, known for its innovative smart beds and sleep solutions, has faced significant headwinds over the past year, with revenue declining by nearly 11% in the last twelve months despite maintaining impressive gross profit margins of about 60%. Investors have shown concern as the stock struggles to regain momentum, with analysts anticipating further sales decline this year. Sleep Number’s performance is closely watched by market analysts, who have set price targets ranging from $11 to $18, though InvestingPro analysis suggests the stock may be undervalued at current levels. Get access to 8 more exclusive InvestingPro Tips and a comprehensive Pro Research Report for deeper insights into SNBR’s outlook.

In other recent news, Sleep Number Corporation reported its fourth-quarter 2024 earnings, which showed a slight earnings per share (EPS) beat but a significant revenue miss. The company announced an EPS of -0.21, slightly exceeding the forecast of -0.22, but revenue fell short at $377 million compared to the expected $413.17 million. This revenue represented a 12% decline year-over-year, highlighting ongoing challenges in the market. Despite these challenges, Sleep Number improved its adjusted EBITDA by 43% to $26 million, thanks to cost management efforts and a focus on higher-margin products like the Climate Cool series. The company did not provide specific guidance for 2025 due to an upcoming CEO transition, but it plans to focus on cost efficiency and margin improvement. Analysts from KeyBanc Capital Markets and Raymond (NSE:RYMD) James raised questions about the company’s pricing strategies and store fleet optimization during the earnings call. Sleep Number is also exploring debt restructuring options to navigate industry pressures. These developments come amidst a challenging consumer environment, with declining consumer sentiment and buying conditions for durables.

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