Sleep Number: Profit Beats, Sales Lag
Sleep Number reported a mixed earnings release with better-than-expected earnings but lower revenue, indicating successful cost management.
Sleep Number (NASDAQ:SNBR), known for its customizable mattresses with integrated smart technology, released its fourth-quarter 2024 earnings on March 5, 2025. The company reported a notable improvement in earnings per share (EPS), with actual results showing a smaller loss of -$0.21 per share compared to forecasts of -$0.23. Meanwhile, the company’s revenue fell short, registering $377 million against an expectation of $389 million, owing to subdued consumer demand. Despite these challenges, the quarter showcased resilience in gross margin expansion, reflecting a focus on efficiency and cost reduction.
Source: Analyst estimates for the quarter provided by FactSet.
Recognized for its bedding products, Sleep Number focuses on smart bed technology that customizes user comfort using adaptive adjustments and health insights. This transformation into a wellness tech company has differentiated it from traditional mattress sellers. Sleep Number's business model heavily leans on integrating technological advancements such as AI and machine learning into its product lineup, which helps maintain its market competitiveness.
