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Jul 01, 2023

Sleep Number Q2 2023 Earnings Report

Net sales decreased due to challenging macro environment, but demand steadily improved. EPS was reported at $0.03.

Key Takeaways

Sleep Number reported a decrease in net sales to $459 million, driven by a challenging macro environment. However, demand improved throughout the quarter. The company reported EPS of $0.03 and is taking actions to drive efficiencies and expand margins.

Second quarter net sales were $459 million; demand down mid-single digits versus the prior year

Reports second quarter diluted EPS of $0.03

2023 EPS outlook updated to a range of $1.25 to $1.75 per share

Announces the appointment of Francis Lee to Executive Vice President and Chief Financial Officer

Total Revenue
$459M
Previous year: $549M
-16.4%
EPS
$0.03
Previous year: $1.54
-98.1%
Gross Margin
57.6%
Previous year: 59.2%
-2.7%
Adjusted EBITDA
$35M
Gross Profit
$264M
Previous year: $325M
-18.7%
Cash and Equivalents
$1.8M
Previous year: $2.28M
-21.1%
Free Cash Flow
-$14.2M
Previous year: -$12.8M
+10.8%
Total Assets
$965M
Previous year: $950M
+1.6%

Sleep Number

Sleep Number

Forward Guidance

The company updated its full-year 2023 diluted EPS outlook to a range of $1.25 to $1.75. The 2023 outlook assumes net sales are down low to mid-single digits versus the prior year and gross margin improvement of 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.

Positive Outlook

  • EPS outlook updated to a range of $1.25 to $1.75
  • Net sales are down low to mid-single digits versus the prior year
  • Gross margin improvement of more than 150 basis points versus 2022
  • Expects to generate more than $100 million of operating cash flow for the year
  • Anticipates 2023 capital expenditures of $50 million to $60 million