SNBR - Sleep Number notches earnings beat highlights tough macro backdrop

2023-04-26 16:56:20 ET

Sleep Number ( NASDAQ: SNBR ) shares edged higher during Wednesday’s extended session after the company posted a comfortable bottom line beat.

For the first quarter, the company notched $0.51 in earnings per share against just $0.09 in the year prior and well above the $0.29 consensus. However, net sales for the quarter fell narrowly short of analyst expectations.

“First quarter performance was consistent with our expectations, reflecting our team’s strong execution in a challenged macro environment with historically low consumer sentiment pressuring demand. After nearly two years of supply disruption, the consistent flow of microchips has enabled us to return to more efficient operations,” CEO Shelly Ibach said. “Beginning in the second quarter we are executing a sequence of new integrated demand drivers, including our next generation Sleep Number smart beds, lifestyle furniture, and “Sleep Next Level” brand campaign. These ads inspire consumers to unlock their full potential through our smart bed’s life-changing, individualized sleep benefits.”

Management reiterated a wide EPS outlook range of $1.25 to $2.00. The outlook also assumes net sales are flat to down mid-single digits versus the prior year and gross margin improves by more than 150 basis points year over year. Analysts consensus estimates for sales and EPS stand at about a 2.7% decline and $1.63.

Sleep Number ( SNBR ) stock slipped 2.5% in Wednesday's extended session.

Read more on the details of the quarterly report .

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