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Dec 28, 2024
Sleep Number Q4 2024 Earnings Report
Sleep Number reported a revenue decline and a reduced net loss in Q4 2024.
Key Takeaways
Sleep Number reported Q4 2024 revenue of $377 million, a 12% decline year-over-year. The company posted a net loss of $5 million, a significant improvement from the $25 million loss in Q4 2023. Operating income turned positive at $2.8 million after cost reductions. Gross margin increased to 59.9% due to lower product costs and efficiency improvements.
Revenue declined 12% to $377 million in Q4 2024.
Net loss improved to $5 million from $25 million in Q4 2023.
Operating income reached $2.8 million, reversing a prior year loss.
Gross margin increased by 330 basis points to 59.9%.
Forward Guidance
Sleep Number is not issuing full-year 2025 guidance as the company undergoes a CEO transition. Management remains focused on improving demand and cost efficiencies in a challenging market environment.
Positive Outlook
- Improved operating model with cost reductions exceeding targets.
- Stronger gross margin due to efficiency gains and lower product costs.
- Significant reduction in net loss year-over-year.
- Adjusted EBITDA grew 43% compared to prior year.
- Leadership transition expected to bring new strategic direction.
Challenges Ahead
- Revenue decline of 12% compared to prior year.
- Continued weak demand in the bedding industry.
- Limited visibility into future growth due to macroeconomic conditions.
- Store closures impacting sales performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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