Sleep Number Q3 2022 Earnings Report
Key Takeaways
Sleep Number reported a decrease in net sales by 16% due to semiconductor chip supply constraints and softer consumer demand. However, the diluted EPS of $0.22 was ahead of expectations. The company revised its 2022 EPS outlook to $1.50 to $2.00 per diluted share.
Third-quarter net sales declined 16% versus the prior year due to semiconductor chip supply constraints.
Third-quarter diluted EPS of $0.22 exceeded expectations.
Revised 2022 EPS outlook to a range of $1.50 to $2.00 per diluted share.
Company is pursuing actions to improve supply, margin, and demand.
Sleep Number
Sleep Number
Forward Guidance
The company updated its full-year 2022 diluted EPS outlook to a range of $1.50 to $2.00 per share driven by insufficient and uneven flow of chip supply and softer demand. The outlook assumes flat net sales versus the prior year for the fourth quarter. The company anticipates 2022 capital expenditures of approximately $70 million.
Positive Outlook
- EPS outlook between $1.50 and $2.00
- Expects flat net sales for Q4
Challenges Ahead
- Insufficient and uneven flow of chip supply
- Softer demand