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Apr 01, 2023

Sleep Number Q1 2023 Earnings Report

Reported consistent financial results with prior year and increased net operating profit.

Key Takeaways

Sleep Number reported net sales of $527 million, consistent with the prior year. Net operating profit increased to $26 million, up $22 million versus the prior year. Diluted EPS was $0.51 compared to $0.09 last year. The company reiterates its full-year 2023 earnings outlook of $1.25 to $2.00 per diluted share.

Net sales of $527 million were consistent with the prior year.

Net operating profit increased to $26 million, up $22 million versus the prior year, including a 160 basis point (bp) gross profit rate improvement year-over-year.

Diluted EPS of $0.51 versus $0.09 last year.

Reiterates full-year 2023 earnings outlook of $1.25 to $2.00 per diluted share.

Total Revenue
$527M
Previous year: $527M
-0.1%
EPS
$0.51
Previous year: $0.09
+466.7%
Adjusted EBITDA
$48.6M
Gross Profit
$310M
Previous year: $280M
+10.9%
Cash and Equivalents
$1.46M
Previous year: $1.56M
-6.2%
Free Cash Flow
$3.03M
Previous year: $4.95M
-38.9%
Total Assets
$963M
Previous year: $913M
+5.5%

Sleep Number

Sleep Number

Forward Guidance

The company reiterates its outlook for 2023 diluted EPS of $1.25 to $2.00. The 2023 outlook assumes net sales are flat to down mid-single digits versus the prior year and gross margin improves by more than 150 basis points versus 2022. The company expects to generate more than $100 million of operating cash flow for the year and positive free cash flows. The company anticipates 2023 capital expenditures of $50 million to $60 million and is planning no share repurchases under our Board-approved share repurchase program during the year.