SNBR - Why Sleep Number Stock Dipped This Week
2023-08-18 14:09:00 ET
Shares of Sleep Number (NASDAQ: SNBR) dipped as much as 12.5% this week, according to data provided by S&P Global Market Intelligence . The smart mattress and sleep company has been reeling in recent quarters after posting weak results coming out of the pandemic lockdowns. Investors are also likely worried about the company's ability to pay back the large loans on its balance sheet. As of 1:41 p.m. ET on Friday, Aug 18, shares of Sleep Number are down 45% in the past year.
In the second quarter of 2023, Sleep Number posted dismal earnings. Revenue declined 16% year over year in the period to $459 million, driven by consumers switching their spending from consumables to travel and entertainment as the world gets further away from the COVID-19 pandemic. Sleep Number, as a seller of a key household item, is facing a major headwind with this development.
The company still generated an operating profit, if just slightly. Sleep Number posted an operating income of $11 million in Q2, which was down from $50 million a year ago. However, this barely can pay for the company's interest expense, which ran to $10 million in the quarter.
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Why Sleep Number Stock Dipped This Week