NASDAQ$SNBR

Sleep Number Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record results with net sales growth and increased operating income and diluted EPS.

Sleep Number announced record third quarter 2020 results, with net sales growing 12% to a record $531 million. Operating income grew 78% and diluted EPS grew 90% to a record $1.79. The company also provided a 2020 earnings outlook of approximately $4.00 per diluted share, a 48% increase versus full-year 2019.

  • Third quarter net sales grew 12% to a record $531 million, with demand growth of 16%
  • Third quarter operating income grew 78% and diluted EPS grew 90% to a record $1.79
  • Generated a 51% increase in year-to-date operating cash flows, and a trailing twelve-months ROIC of 20.8%
  • Provides 2020 earnings outlook of approximately $4.00 per diluted share, a 48% increase versus full-year 2019 earnings per diluted share of $2.70, on estimated net sales growth of 7% to 8%

Headline financials

Total Revenue

$531M

Previous: $475M+11.9%
EPS (adj)

$1.79

Previous: $0.94+90.4%
Gross Profit Margin

63.1%

Previous: 62.4%+1.1%
Capital Expenditures

-$28.1M

Previous: -$46.8M+40.0%
Free Cash Flow

$23.2M

Previous: -$18.7M+224.3%
Net Income

$51.3M

Previous: $28.1M+82.9%
Operating Income

$69.6M

Previous: $39.2M+77.8%
Gross Profit

$335M

Previous: $296M+13.0%
Cash & Equivalents

$1.37M

Previous: $1.55M-11.7%
Total Assets

$780M

Previous: $802M-2.8%
Stock-Based Comp

$8.47M

Previous: $4.15M+104.3%

Revenue & EPS history

Sleep Number · Revenue · Quarterly

$531M

Q3 2020+11.9%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Sleep Number · $530M total across 2 segments · Q3 2020

  • Retail Stores
    $457M
  • Online, Phone, Chat and Other
    $72.8M

Forward guidance

The company expects to generate full-year 2020 earnings per diluted share of approximately $4.00, which would represent a 48% increase versus full-year 2019 earnings per diluted share of $2.70. The outlook assumes 7% to 8% net sales growth for 2020, including an estimated two percentage points of growth and approximately 25 cents per share from the 53rd week.

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 Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-3.1%

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%
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 2011+1.8%
Q4 2010+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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