Sleep Number lost less money than Wall Street feared and its stock price rose.
Shares of Sleep Number Corp. rallied more than 8% in the extended session Thursday after the mattress maker and retailer posted better-than-expected quarterly losses and revenue.
“While the consumer environment for the mattress industry remains challenging, our rapid actions to improve demand and reduce costs allowed us to make better-than-expected progress in the fourth quarter,” CEO Shelly Ibach said in a statement. “He said.
sleep number SNBR,
It lost $15 million, or 68 cents per share, in the fourth quarter, compared with a profit of $37 million, or $1.60 per share, in the year-ago quarter. Analysts surveyed by FactSet had expected a loss of 88 cents per share.
Adjusted for one-time items, including restructuring charges recorded in the quarter, the company lost 58 cents per share.
Sales fell 14% to $430 million, and demand was down single digits compared to the previous year, the company said. That beat the FactSet consensus of $421 million.
The company said it expects demand for mattresses “to remain under pressure in 2024.”
Full-year adjusted EBITDA was between $125 million and $145 million, with net sales down mid-single digits.
The company said its restructuring efforts were “progressing as planned,” with operating expenses falling by $85 million last year. We plan to reduce operating costs by an additional $40 million to $45 million this year.
In 2023, we will have approximately 4,100 employees, a 7% decrease from 2019.
Sleep Number’s share is down 68% over the past 12 months, while the S&P 500 index SPX is up about 27%..
