NASDAQ$SNBR

Sleep Number Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Sleep Number's second quarter results reflected the significant impact of COVID-19, with high-single digit demand growth for the last two months of the quarter.

Sleep Number reported a decrease in net sales by 20% compared to the previous year, but saw high-single digit demand growth in the last two months of the quarter. The company's gross profit rate decreased due to product mix changes and sales deleverage, while operating expenses were reduced. The company is not providing financial guidance due to the continued uncertainty related to COVID-19.

  • Net sales were $285 million, down 20% compared with $356 million last year.
  • Gross profit rate of 57.2%, compared with 61.0% last year, reflecting product mix changes and sales deleverage as a result of COVID-19.
  • Operating expense reduction of $35 million or 17% versus prior year, reflects immediate actions taken to reduce expenses
  • Net loss per diluted share of $0.45, compared to net income per diluted share of $0.14 last year

Headline financials

Total Revenue

$285M

Previous: $356M-20.0%
EPS (adj)

-$0.45

Previous: $0.10-550.0%
Gross Profit Margin

57.2%

Previous: 61.0%-6.2%
Capital Expenditures

-$21.7M

Previous: -$33.9M+36.0%
Free Cash Flow

-$34.3M

Previous: -$29.6M-15.9%
Net Income

-$12.6M

Previous: $4.28M-395.1%
Operating Income

-$12.1M

Previous: $7.25M-267.4%
Gross Profit

$163M

Previous: $217M-24.9%
Cash & Equivalents

$1.65M

Previous: $1.68M-2.0%
Total Assets

$769M

Previous: $796M-3.4%
Stock-Based Comp

$5.03M

Previous: $4.25M+18.4%

Revenue & EPS history

Sleep Number · Revenue · Quarterly

$285M

Q2 2020-20%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Sleep Number · $284M total across 2 segments · Q2 2020

  • Retail Stores
    $206M
  • Online, Phone, Chat and Other
    $78.4M

Forward guidance

The company is not providing any further financial guidance at this time due to the continued uncertainty related to COVID-19. The company expects to meet its liquidity needs from operating cash flows and its existing credit facility, while funding growth initiatives and other longer-term opportunities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.1%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-5.0%

Avg return

30 days after

49%

31 / 63 earnings

Positive

+38.8%

Q1 2020

Best reaction

-41.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-22.4%-37.1%-73.1%
Q4 2025-5.5%-18.3%-61.6%
Q3 2025-1.3%-0.4%-7.6%
Q1 2025+6.7%+18.6%+40.2%
Q4 2024-41.9%-45.6%-59.4%
Q3 2024+2.6%-1.9%+12.4%
Q2 2024+24.1%+6.6%+33.4%
Q1 2024-2.5%-6.6%-7.6%
Q4 2023+28.3%+45.4%+17.9%
Q3 2023-30.1%-39.4%-10.1%
Q2 2023-29.8%-29.6%-42.5%
Q1 2023-10.1%-10.9%-25.6%
Q4 2022+22.4%-12.2%-14.0%
Q3 2022-21.4%-22.8%-16.4%
Q2 2022+21.1%+31.8%+17.2%
Q1 2022-13.0%-14.5%-16.8%
Q4 2021+1.4%+5.0%-8.2%
Q3 2021+0.6%-0.4%-11.3%
Q2 2021-8.2%-12.1%-13.7%
Q1 2021-8.2%-4.7%-16.0%
Q3 2020+8.6%+7.0%+13.0%
Q2 2020-5.9%-9.8%-11.5%
Q1 2020+38.8%+50.3%+51.2%
Q4 2019+6.2%-5.4%-57.8%
Q3 2019+1.3%+5.5%+5.4%
Q2 2019+18.5%+21.0%+1.3%
Q1 2019-19.8%-25.2%-30.9%
Q4 2018+15.8%+21.3%+32.9%
Q3 2018+11.1%+10.2%+12.5%
Q2 2018-6.3%-10.9%+4.0%
Q1 2018-15.0%-20.0%-20.4%
Q4 2017-6.2%-4.5%-3.3%
Q3 2017+5.0%+11.3%+9.2%
Q2 2017+4.8%+4.5%+4.8%
Q1 2017+32.6%+25.0%+15.8%
Q4 2016+8.2%+11.7%+22.1%
Q3 2016-10.1%-8.4%+7.5%
Q2 2016-3.1%+0.1%+18.8%
Q1 2016+18.4%
Q4 2015-23.3%
Q3 2015+15.8%
Q2 2015-9.8%
Q1 2015-0.5%
Q4 2014+2.0%
Q3 2014+15.0%
Q2 2014+7.1%
Q1 2014+9.6%
Q4 2013+4.2%
Q3 2013-23.1%
Q2 2013-11.0%
Q1 2013-0.2%
Q4 2012-14.9%
Q3 2012-5.3%
Q2 2012+30.7%
Q1 2012-3.1%
Q4 2010+1.8%
Q4 2011+1.8%
Q3 2011-0.4%
Q2 2011-9.8%
Q1 2011-9.8%
Q3 2010+5.1%
Q2 2010-3.5%
Q1 2010+10.6%

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