Shares of Sleep Number (NASDAQ: SNBR) dropped in after-hours trading on Wednesday as the bedding accessories and mattress company revised its FY22 outlook.
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The company now expects FY22 earnings to range between $1.50 and $2 per diluted share assuming flat year-over-year sales in Q4 versus analysts’ forecasts of $3.3 per share. SNBR had earlier projected earnings in the range of $3 to $4 per share. This revised outlook is “driven by insufficient and uneven flow of chip supply and softer demand.”
Sales of the company fell 16% year-over-year to $541 million, after “softer-than-expected consumer demand.” However, SNBR’s sales still came in ahead of analysts’ expectations of $529.4 million. Earnings per diluted share were $0.22, surpassing consensus estimates of $0.06.