SNBR - 3 Reasons Why Sleep Number Stock Is Becoming a Nightmare
As its chip supply issues worsened, mattress maker Sleep Number 's (NASDAQ: SNBR) Q4 earnings significantly missed the company's guidance, briefly sending its shares to a new 52-week low. And with no solution in sight, there are three reasons why Sleep Number shareholders should be concerned.
What began as a dreamy 2021 for Sleep Number quickly devolved into an ongoing nightmare. After its stock hit an all-time high in March, the mattress company revealed that it had been struggling with foam supply, resulting in backorders. The lack of foam not only led to a class action lawsuit, but also bled into the third quarter, when management revealed it had been solved, only to have new supply issues with semiconductor chips and "other electronic components."
Now, management revealed that the fourth quarter posed its most challenging supply chain struggles yet. And in even worse news, the company has seen an increase in delays in the first quarter of 2022, with 40% of its products expected to take either six or 11 weeks to deliver.
For further details see:
3 Reasons Why Sleep Number Stock Is Becoming a Nightmare