Sleep Number (NASDAQ:SNBR) Issues Earnings Results

Sleep Number (NASDAQ:SNBR) released its quarterly earnings data on Tuesday. The company reported ($2.19) EPS for the quarter, missing the consensus estimate of ($0.39) by ($1.80), FiscalAI reports. The firm had revenue of $318.99 million during the quarter, compared to analysts’ expectations 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 Stock Down 8.5%

SNBR stock traded down $0.16 during midday trading on Wednesday, hitting $1.74. The company’s stock had a trading volume of 194,892 shares, compared to its average volume of 1,917,667. The stock’s 50-day moving average price is $2.84 and its 200 day moving average price is $6.08. Sleep Number has a 1 year low of $1.06 and a 1 year high of $13.94. The stock has a market cap of $39.75 million, a price-to-earnings ratio of -0.30 and a beta of 2.71.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Piper Sandler cut their price objective on shares of Sleep Number from $12.00 to $5.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. Wall Street Zen lowered shares of Sleep Number from a “sell” rating to a “strong sell” rating in a research report on Sunday, April 19th. Finally, UBS Group restated a “neutral” rating and set a $2.00 price target on shares of Sleep Number in a report on Wednesday. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $3.50.

Institutional Investors Weigh In On Sleep Number

A number of hedge funds have recently made changes to their positions in SNBR. Russell Investments Group Ltd. increased its holdings in Sleep Number by 3.6% during the 4th quarter. Russell Investments Group Ltd. now owns 37,660 shares of the company’s stock valued at $319,000 after purchasing an additional 1,320 shares during the period. Public Employees Retirement System of Ohio lifted its stake in Sleep Number by 3.1% in the fourth quarter. Public Employees Retirement System of Ohio now owns 44,798 shares of the company’s stock worth $379,000 after acquiring an additional 1,326 shares during the period. State Street Corp boosted its holdings in Sleep Number by 0.4% in the fourth quarter. State Street Corp now owns 456,627 shares of the company’s stock valued at $3,863,000 after acquiring an additional 1,994 shares in the last quarter. Quadrature Capital Ltd boosted its holdings in Sleep Number by 48.3% in the fourth quarter. Quadrature Capital Ltd now owns 15,305 shares of the company’s stock valued at $129,000 after acquiring an additional 4,987 shares in the last quarter. Finally, Bridgeway Capital Management LLC increased its position in shares of Sleep Number by 15.9% during the second quarter. Bridgeway Capital Management LLC now owns 40,100 shares of the company’s stock valued at $271,000 after buying an additional 5,500 shares during the period. 85.67% of the stock is currently owned by institutional investors.

About Sleep Number

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.