Sleep Number Corp ( (SNBR) ) has released its Q4 earnings. Here is a breakdown of the information Sleep Number Corp presented to its investors.
Sleep Number Corporation is a wellness technology company specializing in innovative sleep solutions, primarily known for its smart bed ecosystem that offers personalized sleep and health insights through a direct-to-consumer model in the bedding industry.
In its latest earnings report, Sleep Number Corporation announced a significant improvement in its gross profit rate for both the fourth quarter and the full year 2024, despite facing ongoing challenges in the U.S. bedding industry. The company also highlighted a reduction in operating expenses and a notable increase in adjusted EBITDA.
Key financial metrics from the report include a fourth-quarter gross profit rate of 59.9%, an increase of 330 basis points from the previous year, and a full-year gross profit rate of 59.6%, up 190 basis points. Operating expenses were reduced by $28 million in the fourth quarter and $88 million for the full year. The company reported a fourth-quarter net loss of $5 million, a significant improvement from the $25 million loss in the same period last year. Adjusted EBITDA for the fourth quarter rose by 43% to $26 million, with a full-year adjusted EBITDA of $120 million.
In addition to financial performance, Sleep Number announced leadership changes with Linda Findley set to take over as President and CEO in April 2025. The company also amended its revolving credit facility to provide greater financial flexibility through 2025.
Looking ahead, Sleep Number’s management remains focused on transforming its operating model for greater financial resilience and is optimistic about achieving long-term growth once market conditions improve. The company is poised to continue its strategic initiatives under new leadership while navigating the current industry challenges.