Sleep Number Corp ( (SNBR) ) has released its Q1 earnings. Here is a breakdown of the information Sleep Number Corp presented to its investors.
Sleep Number Corporation is a sleep wellness company that specializes in innovative sleep solutions, including smart beds with personalized features, operating primarily in the direct-to-consumer retail sector.
In its first quarter of 2025 earnings report, Sleep Number Corporation announced a strategic organizational restructuring aimed at enhancing efficiency and shareholder value. Despite a challenging quarter with net sales of $393 million, a 16% decline from the previous year, the company is focused on cost-saving initiatives and improving its operational structure.
Key financial highlights from the quarter include a gross profit margin increase to 61.2%, up 250 basis points from the prior year, and a reduction in operating expenses by $23 million year-over-year. However, the company reported a net loss of $8.6 million, slightly higher than the previous year’s loss of $7.5 million. Adjusted EBITDA also saw a decline of 41% to $22 million, primarily due to reduced net sales.
The company has introduced a new organizational structure, reducing corporate management roles by 21% and implementing cost-saving measures expected to reduce annual operating expenses by $80 to $100 million. These changes are part of a broader strategy to streamline operations and focus on customer-centric growth.
Looking ahead, Sleep Number Corporation is not providing a financial outlook for 2025 due to recent leadership changes and the evolving macroeconomic environment. The company remains committed to reassessing its strategy to drive sustainable growth and profitability in the future.