Sleep Number Corporation · Q1 2021 earnings

Briefing

Reported record first quarter results with increased net sales and demand, operating income, and diluted earnings per share.

Sleep Number Corporation reported a strong first quarter in 2021, marked by a 20% increase in net sales to $568 million and a demand surge of over 30% year-over-year. The company's operating income rose by 45%, reaching 13.4% of net sales, and diluted earnings per share grew by 85% to a record $2.51. The company also raised its full-year 2021 EPS outlook to at least $6.50.

• Net sales increased 20% to $568 million with a 20% comparable store sales gain.
• Gross profit increased 18% to a record $356 million or 62.6% of net sales.
• Operating income increased 45% to $76 million, or 13.4% of net sales.
• Earnings per diluted share increased 85% to a record $2.51.

Headline financials

Revenue & EPS history

The company raised its 2021 earnings per diluted share outlook to at least $6.50, which is more than 40% greater than 2020 full-year results excluding the impact of the 53rd week. The outlook assumes an estimated effective income tax rate of 25% for the balance of the year. The company expects to generate approximately $300 million of operating cash flows in 2021 with capital expenditures of approximately $75 million.