Sleep Number Q2 2022 Earnings Report
Key Takeaways
Sleep Number Corporation reported a 13% increase in net sales to $549 million and a 75% increase in diluted EPS to $1.54 for the second quarter of 2022. The company updated its full-year 2022 diluted EPS outlook to a range of $3.00 to $4.00 per share.
Second-quarter net sales increased 13% and diluted EPS grew 75% versus the prior year
Year-to-date net sales increased 2% with year-to-date diluted EPS of $1.60 versus $3.44 for the same period last year on constrained electronics supply, inflation pressures and low consumer sentiment
Gross margin of 59.2% of net sales, more than 100 basis points above expectations due to favorable product mix which more than offset operating inefficiencies resulting from the uneven flow of electronics supply
Leverage ratio of 3.3x EBITDAR at the end of the second quarter; more than $375 million of liquidity remains against current debt facility
Sleep Number
Sleep Number
Forward Guidance
The company updated its full-year 2022 diluted EPS outlook to a range of $3.00 to $4.00 per share based on macro conditions. The outlook assumes low single-digit net sales growth for 2022 on a high single-digit demand decline, while servicing excess backlog. The company anticipates 2022 capital expenditures of approximately $70 million.