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Sep 26, 2020

Sleep Number Q3 2020 Earnings Report

Reported record results with net sales growth and increased operating income and diluted EPS.

Key Takeaways

Sleep Number announced record third quarter 2020 results, with net sales growing 12% to a record $531 million. Operating income grew 78% and diluted EPS grew 90% to a record $1.79. The company also provided a 2020 earnings outlook of approximately $4.00 per diluted share, a 48% increase versus full-year 2019.

Third quarter net sales grew 12% to a record $531 million, with demand growth of 16%

Third quarter operating income grew 78% and diluted EPS grew 90% to a record $1.79

Generated a 51% increase in year-to-date operating cash flows, and a trailing twelve-months ROIC of 20.8%

Provides 2020 earnings outlook of approximately $4.00 per diluted share, a 48% increase versus full-year 2019 earnings per diluted share of $2.70, on estimated net sales growth of 7% to 8%

Total Revenue
$531M
Previous year: $475M
+11.9%
EPS
$1.79
Previous year: $0.94
+90.4%
Gross Margin
63.1%
Previous year: 62.4%
+1.1%
Gross Profit
$335M
Previous year: $296M
+13.0%
Cash and Equivalents
$1.37M
Previous year: $1.55M
-11.7%
Free Cash Flow
$194M
Previous year: $107M
+81.9%
Total Assets
$780M
Previous year: $802M
-2.8%

Sleep Number

Sleep Number

Sleep Number Revenue by Segment

Forward Guidance

The company expects to generate full-year 2020 earnings per diluted share of approximately $4.00, which would represent a 48% increase versus full-year 2019 earnings per diluted share of $2.70. The outlook assumes 7% to 8% net sales growth for 2020, including an estimated two percentage points of growth and approximately 25 cents per share from the 53rd week.

Revenue & Expenses

Visualization of income flow from segment revenue to net income