Sleep Number Corp ( (SNBR) ) has released its Q2 earnings. Here is a breakdown of the information Sleep Number Corp presented to its investors.
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Sleep Number Corporation, a leader in sleep wellness, specializes in innovative sleep solutions through its smart bed ecosystem, offering personalized sleep and health insights to enhance overall well-being. In its second quarter of 2025, Sleep Number reported a net sales decline of 19.7% to $328 million compared to the same period last year, alongside a net loss of $25 million. Despite these challenges, the company maintained a stable gross profit margin of 59.1% and reduced operating expenses by 21%, reflecting strategic cost management efforts.
Key financial metrics highlighted a decrease in adjusted EBITDA by 17% to $24 million, attributed to lower net sales and reduced fixed cost leverage. The company implemented significant cost-saving measures, exceeding initial targets with $130 million in savings for 2025, while maintaining compliance with debt covenants. Sleep Number’s strategic focus includes enhancing its marketing efficiency, optimizing product offerings, and improving consumer engagement to drive future growth.
Looking ahead, Sleep Number anticipates a 14% decline in full-year net sales for 2025, with expectations of a 61% gross profit margin. The company aims for break-even free cash flow in the latter half of the year, while continuing to manage costs aggressively. Management remains optimistic about sequential topline improvements in upcoming quarters, driven by strategic initiatives and cost management efforts.