The earnings call reflects a company in transition, with significant cost-saving measures and marketing efficiency improvements showing promise, despite facing substantial revenue decline and debt-related challenges. The sentiment is cautiously optimistic as strategic changes are underway, though full benefits may not be realized until 2026.

Company Guidance

During Sleep Number's Second Quarter 2025 Earnings Conference Call, CEO Linda Findley discussed various strategic initiatives aimed at resetting the business for long-term growth. The company implemented a 30% year-over-year reduction in Q2 marketing spend, contributing to a decline in revenue to $328 million, down 19.7% from the prior year. However, marketing efficiency improved, leading to a 24% increase in conversion year-over-year in Q2. The company expects to surpass its previously targeted $80-$100 million in annualized cost savings, now anticipating over $130 million in operating expense reductions for 2025 compared to 2024. Gross profit margin remained stable at 59.1%, and Sleep Number aims for a 61% gross margin in the second half. Additionally, the guidance included full-year net sales of approximately $1.45 billion, reflecting a 14% decline year-over-year. The company is also exploring new distribution channels, including digital-first and retail partnerships, and expects to unveil product line enhancements in 2026.

Cost Saving Exceeding Expectations

Sleep Number expects to remove over $130 million in operating expenses in 2025 compared to 2024, surpassing the original target of $80 million to $100 million.

Marketing Efficiency Improvement

Marketing efficiency improved with a 24% increase in conversion year-over-year in Q2, despite a 30% reduction in marketing spend.

Gross Profit Margin Stability

Gross profit margin remained stable at 59.1%, with continued reduction in material costs and manufacturing efficiencies offsetting lower unit volumes.

Sleep Number (SNBR) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SNBR Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 22, 2025	2025 (Q3)	0.20 / -	-0.14	―	―	―
Jul 30, 2025	2025 (Q2)	-0.11 / -1.09	-0.22	-395.45% (-0.87)	―
Apr 30, 2025	2025 (Q1)	-0.03 / -0.38	-0.33	-15.15% (-0.05)	―
Mar 05, 2025	2024 (Q4)	-0.23 / -0.21	-1.12	81.25% (+0.91)	―
Oct 30, 2024	2024 (Q3)	-0.20 / -0.14	-0.1	-40.00% (-0.04)	―
Jul 31, 2024	2024 (Q2)	-0.41 / -0.22	0.03	-833.33% (-0.25)	―
Apr 24, 2024	2024 (Q1)	-0.31 / -0.33	0.51	-164.71% (-0.84)	―
Feb 22, 2024	2023 (Q4)	-0.88 / -1.12	-0.24	-366.67% (-0.88)	―
Nov 07, 2023	2023 (Q3)	0.06 / -0.10	0.22	-145.45% (-0.32)	―
Jul 27, 2023	2023 (Q2)	-0.01 / 0.03	1.54	-98.05% (-1.51)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

SNBR Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 30, 2025	$8.16	$7.01	-14.09%
Apr 30, 2025	$7.79	$8.05	+3.34%
Mar 05, 2025	$12.89	$7.49	-41.89%
Oct 30, 2024	$13.23	$13.70	+3.55%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.