SNBR - Sleep Number shares down ~9% premarket after company cuts FY profit sales guidance

Sleep Number ( NASDAQ: SNBR ) stock fell 9.1% to $33.13 in Thursday premarket trading, after the bedding products and smart beds company slashed its FY 2022 EPS and net sales guidance.

SNBR after hours on Wednesday reported Q2 GAAP EPS of $1.54 which beat estimates by $0.92 . Its Q2 revenue of $549.07M also beat expectations by $42.93M .

However, the company cut its FY 2022 EPS outlook to a range of $3 to $4, from a previous guidance of $5 to $6. The consensus EPS estimate for FY is $4.08.

SNBR also said it now expects FY net sales growth in low single-digits compared to a previous forecast of low double-digit growth. The consensus revenue estimate is 3% Y/Y growth to $2.25B.

"Consumer sentiment plummeted to record low levels in May and June, with declines across all demographic segments. Correspondingly our demand for the second quarter declined 12% versus the prior year," said SNBR CEO Shelly Ibach on the earnings conference call .

The company still managed to post a Y/Y growth in quarterly revenue as it serviced a portion of its profitable excess backlog.

"Our revised EPS guidance of $3 to $4 assumes that current macro headwinds will continue in the back half of the year...Demand is now expected to decline high single to low double digits for the balance of the year with backlog service resulting in 2022 net sales growth of low single digits," said SNBR CFO David Callen on the conference call.

The company expects electronic supply to constrain deliveries in Q3 to about 90K to 100K smart beds. Overall, Sleep Number ( SNBR ) expects about breakeven Q3 earnings followed by a profitable Q4.

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