Sleep Number (NASDAQ:SNBR) Posts Earnings Results, Misses Estimates By $1.80 EPS

Sleep Number (NASDAQ:SNBR) posted its quarterly earnings results on Tuesday. The company reported ($2.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.39) by ($1.80), FiscalAI reports. The firm had revenue of $318.99 million for the quarter, compared to analyst estimates 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 Trading Down 6.8%

Shares of NASDAQ SNBR opened at $1.77 on Thursday. The stock has a market cap of $40.47 million, a price-to-earnings ratio of -0.23 and a beta of 2.71. Sleep Number has a 52 week low of $1.06 and a 52 week high of $13.94. The company’s 50-day moving average price is $2.76 and its 200 day moving average price is $6.04.

Wall Street Analysts Forecast Growth

SNBR has been the topic of a number of recent analyst reports. Wall Street Zen cut shares of Sleep Number from a “sell” rating to a “strong sell” rating in a research note on Sunday, April 19th. UBS Group lowered their price target on shares of Sleep Number from $4.00 to $2.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Piper Sandler lowered their price target on shares of Sleep Number from $12.00 to $5.00 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $3.50.

Institutional Investors Weigh In On Sleep Number

Large investors have recently added to or reduced their stakes in the business. Sei Investments Co. acquired a new stake in Sleep Number in the 2nd quarter valued at about $73,000. Sherbrooke Park Advisers LLC acquired a new stake in Sleep Number in the 3rd quarter valued at about $87,000. Bank of Montreal Can acquired a new stake in Sleep Number in the 4th quarter valued at about $89,000. Worth Venture Partners LLC acquired a new stake in Sleep Number in the 3rd quarter valued at about $105,000. Finally, Virtu Financial LLC acquired a new stake in Sleep Number in the 3rd quarter valued at about $111,000. 85.67% of the stock is owned by institutional investors and hedge funds.

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.