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Oct 02, 2021

Sleep Number Q3 2021 Earnings Report

Reported record third quarter results driven by strong demand and market share gains.

Key Takeaways

Sleep Number announced record third quarter 2021 results with net sales growing 21% to $640 million and diluted EPS growing 24% to $2.22.

Third-quarter net sales grew 21% to a record $640 million (+35% versus 2019); generated double-digit demand growth for fourth consecutive third quarter

Third-quarter operating income increased 4% to a record $73 million (+86% versus 2019), while absorbing significant input cost increases; year-to-date operating income increased 62% versus prior year

Third-quarter diluted EPS grew 24% to $2.22; year-to-date EPS of $5.63 increased 106% versus last year (+199% versus 2019)

Generated $293 million in year-to-date operating cash flows and a trailing twelve-month (ttm) ROIC greater than 34%

Total Revenue
$640M
Previous year: $531M
+20.6%
EPS
$2.22
Previous year: $1.79
+24.0%
Gross Margin
61%
Previous year: 63.1%
-3.3%
Gross Profit
$390M
Previous year: $335M
+16.5%
Cash and Equivalents
$1.83M
Previous year: $1.37M
+34.1%

Sleep Number

Sleep Number

Forward Guidance

The company is targeting 2021 earnings per diluted share of $7.25.

Challenges Ahead

  • The timing of receiving electronic components could elongate some of our customer deliveries into the first quarter of 2022.