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Mar 30, 2024
Sleep Number Q1 2024 Earnings Report
Sleep Number reported first quarter results with adjusted EBITDA slightly ahead of expectations and reduced operating expenses year-over-year.
Key Takeaways
Sleep Number's first quarter 2024 results showed a net sales of $470 million and an adjusted EBITDA of $37 million, slightly above expectations. The company reduced operating expenses by $24 million year-over-year and increased free cash flow by $21 million compared to the prior year's first quarter. They reiterated their full-year 2024 adjusted EBITDA outlook of $125 million to $145 million.
Net sales reached $470 million, reflecting an 11% decline compared to the previous year, influenced by order backlog changes.
Adjusted EBITDA stood at $37 million, surpassing expectations due to increased operating model efficiencies.
Gross margin was 58.7%, showing a sequential improvement from the latter half of the prior year.
Free cash flow significantly increased year-over-year, and the company is prioritizing debt reduction and leverage.
Sleep Number
Sleep Number
Sleep Number Revenue by Segment
Revenue by Segment
Retail Stores Revenue
CapyFin.comOnline, Phone, Chat and Other Revenue
CapyFin.com Forward Guidance
The company reiterates its outlook for 2024 adjusted EBITDA of $125 million to $145 million. They continue to expect a mid-single digit net sales decline for the year on a low-single digit demand decline.
Positive Outlook
- Expect approximately 100 basis points of gross margin rate improvement.
- Expects to generate $60 million to $80 million of free cash flow.
Challenges Ahead
- Continue to expect a mid-single digit net sales decline for the year on a low-single digit demand decline.
- Expect $14 million of restructuring charges for the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income