Sleep Number (SNBR) stock dove on Wednesday following the release of the mattress company’s Q2 2025 earnings report. This started with diluted earnings per share of -$1.09, well below Wall Street’s estimate of -11 cents. This came from a net loss of $25 million, which was down by $20 million due to lower net sales.
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Revenue reported by Sleep Number in Q2 2025 was $328 million, which is another miss compared to analysts’ estimate of $357.42 million. The company’s revenue was down 19.7% year-over-year, largely due to lower volume and a reduced store count.
Sleep Number stock was down 22.67% in pre-market trading on Wednesday, following a 9.33% drop yesterday. The shares have also fallen 46.46% year-to-date and 30.85% over the past 12 months.
Sleep Number Outlook
Sleep Number provided investors with an updated 2025 outlook in its latest earnings report. The company expects revenue for the year to be approximately $1.45 billion, which would be a 14% year-over-year decline. This would also see it miss Wall Street’s revenue estimate of $1.52 billion for the period. It attributed this lackluster guidance to softer year-over-year comparisons and the 53rd week in 2024.
Linda Findley, President and CEO of Sleep Number, said, “It is clear Sleep Number has a strong brand and differentiated products. We are building on these core strengths with plans to return to profitable growth by starting to implement initiatives focused on enhancing our product assortment, value proposition, and consumer engagement.”
Is Sleep Number Stock a Buy, Sell, or Hold?
Turning to Wall Street, only one analyst has covered Sleep Number in the last three months. Five-star Piper Sandler analyst Peter Keith has a Hold rating and $6 price target, representing a potential 26.47% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
