Overview

* Sleep Number ( SNBR ) Q3 sales down 19.6%, missing analyst expectations

* Adjusted EPS for Q3 missed consensus estimates

* Company secured bank agreement extension through 2027 for financial flexibility

Outlook

* Company revises 2025 net sales outlook to approximately $1.4 bln due to pressure on business

* Sleep Number ( SNBR ) expects 2025 gross profit margin to be approximately 60%

* Company anticipates 2025 adjusted EBITDA of approximately $70 mln

Result Drivers

* SALES DECLINE - Net sales fell 19.6% due to lower volume and reduced store count

* COST REDUCTIONS - Operating expenses reduced by $44.8 mln, driven by lower marketing, selling, and administrative expenses

* TURNAROUND STRATEGY - Co is focusing on product, brand positioning, and distribution to drive demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $343 mln $364.10

mln (4

Analysts

)

Q3 Miss -$1.73 $0.20 (4

Adjusted Analysts

EPS )

Q3 Net -$40 mln

Income

Q3 Gross 59.90%

Margin

Q3 Gross $205 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the home furnishings peer group is "buy."

* Wall Street's median 12-month price target for Sleep Number Corp ( SNBR ) is $7.50, about 26.7% above its November 4 closing price of $5.50

* The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 157 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)