Bedding manufacturer and retailer Sleep Number (NASDAQ:SNBR) reports earnings results Thursday morning. Here’s what investors need to know.
Sleep Number exceeded analyst revenue expectations last quarter, reporting revenue of $342.9 million, down 19.6% year over year. It was a disappointing quarter for the company, with full-year EBITDA expectations significantly missing analysts’ expectations and revenue expectations significantly missed.
Is Sleep Number a profit-making buy or sale? Read our full analysis here, it’s free for active Edge members.
This quarter, the market expects Sleep Number’s revenue to decline 12.8% year-on-year, in line with the 12.3% decline recorded in the same quarter last year.
Analysts covering the company have generally reaffirmed their estimates over the last thirty days, suggesting they expect the company to continue its trajectory on the earnings front.
Looking at Sleep Number’s peers in the home furnishings and retail improvement segment, some have already reported their fourth quarter results, giving us a hint of what to expect. Arhaus posted year-over-year sales growth of 5.1%, beating analyst expectations by 4.1%, and Home Depot reported a sales decline of 3.8%, in line with consensus estimates. Arhaus traded 1.6% lower after the results, while Home Depot’s stock price was unchanged.
Read our full analysis of Arhaus’s results here and Home Depot’s results here.
The euphoria surrounding Trump’s victory in November has lit a fire under the major indices, but potential tariffs have caused the market to do a 180 in 2025. While some home furnishings and quality retail stocks have shown solid performance in this volatile environment, the group has underperformed overall, with share prices down an average of 9.3% over the past month. Sleep Number is down 53.8% over the same period and is heading for profits with an average analyst price target of $11 (compared to the current share price of $5.13).
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