Sleep Number stock slides 9% as top-line misses estimates in Q4

Published 05/03/2025, 22:14
Sleep Number stock slides 9% as top-line misses estimates in Q4

MINNEAPOLIS - Sleep Number Corporation (NASDAQ:SNBR) shares fell 9.6% in after-hours trading on Wednesday after the mattress maker reported fourth quarter revenue that fell short of analyst expectations, despite a narrower-than-expected loss.

The company posted a fourth quarter net loss of $4.7 million, or $0.21 per share, compared to a loss of $25.2 million, or $1.12 per share, in the same period last year. The result beat analyst estimates for a loss of $0.22 per share.

However, revenue declined 12% year-over-year to $377 million, missing the consensus forecast of $413.17 million as the U.S. bedding industry continued to face significant weakness.

"While the marketplace remains extremely challenging, our dedicated team is intently focused on driving improved demand and further advancing our operating model transformation," said Shelly Ibach, Chair, President and CEO.

Sleep Number reported a gross margin of 59.9% for the quarter, up 330 basis points from the prior year. The company said it reduced operating expenses by $28 million year-over-year.

For the full year 2024, Sleep Number delivered adjusted EBITDA of $120 million, in line with the midpoint of its most recent outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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