Sleep Number lowers FY25 sales view to $1.4B from $1.45B, consensus $1.44B

Given the pressures on the business, the company is revising its outlook for 2025. The company now expects the full year 2025 net sales to be approximately $1.4B and gross profit margin to be approximately 60%. With incremental cost reductions, operating expenses, excluding restructuring and other non-recurring costs, are expected to be approximately $825M. The company now expects adjusted EBITDA to be approximately $70M and negative free cash flow of approximately $50M in 2025.