NASDAQ$SNBR

Sleep Number Corporation · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Sleep Number reported a revenue decline and a reduced net loss in Q4 2024.

Sleep Number reported Q4 2024 revenue of $377 million, a 12% decline year-over-year. The company posted a net loss of $5 million, a significant improvement from the $25 million loss in Q4 2023. Operating income turned positive at $2.8 million after cost reductions. Gross margin increased to 59.9% due to lower product costs and efficiency improvements.

  • Revenue declined 12% to $377 million in Q4 2024.
  • Net loss improved to $5 million from $25 million in Q4 2023.
  • Operating income reached $2.8 million, reversing a prior year loss.
  • Gross margin increased by 330 basis points to 59.9%.

Headline financials

Total Revenue

$377M

Previous: $430M-12.3%
EPS (adj)

-$0.21

Previous: -$0.58+63.8%
Gross Profit Margin

59.9%

No prior period
Adjusted EBITDA

$26.2M

No prior period
Net Income

-$4.67M

Previous: -$25.2M+81.5%
Operating Income

$2.78M

Previous: -$19.6M+114.2%
Gross Profit

$226M

Previous: $243M-7.1%

Revenue & EPS history

Sleep Number · Revenue · Quarterly

$377M

Q4 2024-12.3%vs Q4 2023
Beat estimate in 6 of 14 quarters(43%)
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

Sleep Number is not issuing full-year 2025 guidance as the company undergoes a CEO transition. Management remains focused on improving demand and cost efficiencies in a challenging market environment.

Tailwinds

  • Improved operating model with cost reductions exceeding targets.
  • Stronger gross margin due to efficiency gains and lower product costs.
  • Significant reduction in net loss year-over-year.
  • Adjusted EBITDA grew 43% compared to prior year.
  • Leadership transition expected to bring new strategic direction.

Headwinds

  • Revenue decline of 12% compared to prior year.
  • Continued weak demand in the bedding industry.
  • Limited visibility into future growth due to macroeconomic conditions.
  • Store closures impacting sales performance.
  • Higher interest expenses affecting profitability.

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 Q4 2024

Historical avgQ4 2024

+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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