SNBR - Sleep Number plummets as outlook Q2 EPS miss estimates

2023-07-28 09:27:20 ET

Sleep Number Corporation ( NASDAQ: SNBR ) tumbled 26% before the open after the company reported a revenue miss for the second quarter and forecast weaker-than-expected earnings for the year.

SNBR updated its full-year 2023 diluted EPS outlook to a range of $1.25 to $1.75 from a previous range of $1.25 to $2.00 announced in April. The average analyst estimate for EPS is $1.55, data compiled by Seeking Alpha shows.

Sleep Number ( SNBR ) also announced the appointment of former Nike ( NKE ) executive Francis Lee as its new chief financial officer, effective August 14. Lee takes over from Chris Krusmark, who had been serving as interim CFO since January.

Lee was most recently finance chief at Wyze Labs, a startup formed by former Amazon ( AMZN ) employees that makes smart home cameras and devices.

"Sleep Number and the mattress industry overall have been operating in a disrupted and challenging macro environment, which has resulted in a historic contraction in demand for mattresses with six consecutive quarters at recessionary spend levels," Chief Executive Officer Shelly Ibach said in a statement.

Ibach said to expect a net sales decline for the third quarter, as well as an impact on gross margins from a one-time transition cost. The fourth quarter promises "progressive demand improvement."

For the second quarter, Sleep Number ( SNBR ) reported GAAP EPS of $0.03 beating the average analyst estimate by $0.04, while gross margin of 57.6% was in line with the company's expectations.

SNBR has 5 Hold ratings from Wall Street analysts.

Shares are up 45% year-to-date.

More on SNBR:

• Sleep Number names former Nike executive Francis Lee as new CFO
• Sleep Number GAAP EPS of $0.03 beats by $0.04, revenue of $458.79M misses by $12.6M
• Sleep Number's Rising Potential: A Bottom In Sight Despite Short-Term Losses

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