Sleep Number Corp ( (SNBR) ) has realeased its Q3 earnings. Here is a breakdown of the information Sleep Number Corp presented to its investors.
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Sleep Number Corporation, a wellness technology company specializing in smart beds and individualized sleep solutions, announced its third-quarter results for 2024. The company, known for its innovative sleep technology and direct-to-consumer model, reported a decrease in net sales but maintained a strong gross margin.
In the third quarter of 2024, Sleep Number reported net sales of $427 million, a 10% decline compared to the previous year. Despite the drop in sales, the company achieved a gross margin rate of 60.8%, the highest since 2021, and delivered an adjusted EBITDA of $28 million, aligning with expectations. The company also managed to reduce operating expenses by $17 million for the quarter and increased its year-to-date free cash flow by $50 million.
Key financial highlights include a significant reduction in operating expenses and an improvement in free cash flow, demonstrating the company’s efforts to enhance financial flexibility. Additionally, Sleep Number updated its full-year 2024 adjusted EBITDA outlook to a range of $115 million to $125 million, reflecting the ongoing challenges in the bedding industry.
Looking ahead, Sleep Number remains focused on leveraging its innovation and competitive advantages to maintain market leadership. The company’s management is optimistic about accelerating profitable growth and value creation when industry demand improves, despite persistent consumer demand weakness.
