NASDAQ$SNBR

Sleep Number Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported record third quarter results driven by strong demand and market share gains.

Sleep Number announced record third quarter 2021 results with net sales growing 21% to $640 million and diluted EPS growing 24% to $2.22.

  • Third-quarter net sales grew 21% to a record $640 million (+35% versus 2019); generated double-digit demand growth for fourth consecutive third quarter
  • Third-quarter operating income increased 4% to a record $73 million (+86% versus 2019), while absorbing significant input cost increases; year-to-date operating income increased 62% versus prior year
  • Third-quarter diluted EPS grew 24% to $2.22; year-to-date EPS of $5.63 increased 106% versus last year (+199% versus 2019)
  • Generated $293 million in year-to-date operating cash flows and a trailing twelve-month (ttm) ROIC greater than 34%

Headline financials

Total Revenue

$640M

Previous: $531M+20.6%
EPS (adj)

$2.22

Previous: $1.79+24.0%
Gross Profit Margin

61.0%

Previous: 63.1%-3.3%
Capital Expenditures

-$49.4M

Previous: -$28.1M-75.9%
Free Cash Flow

$4.35M

Previous: $23.2M-81.3%
Net Income

$53.7M

Previous: $51.3M+4.7%
Operating Income

$72.7M

Previous: $69.6M+4.5%
Gross Profit

$390M

Previous: $335M+16.5%
Cash & Equivalents

$1.83M

Previous: $1.37M+34.1%
Total Assets

$884M

Previous: $780M+13.3%

Revenue & EPS history

Sleep Number · Revenue · Quarterly

$640M

Q3 2021+20.6%vs Q3 2020
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 is targeting 2021 earnings per diluted share of $7.25.

Headwinds

  • The timing of receiving electronic components could elongate some of our customer deliveries into the first quarter of 2022.

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 2021

Historical avgQ3 2021

+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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