We are on the path to achieve our goal of more than doubling our 2011 sales and expanding operating margin to more than 15% by 2015. In my over 30-year retail career I have never been more confident about a strategy as I am about our strategy right now at Sleep Number. This confidence comes from our knowledge of the product combined with the unparalleled customer experience that we are delivering. And with our development, it just keeps getting better.
Manufacturers and retailers work hard every day to be relevant for their customers. At Sleep Number we had the unique ability to take a single concept and execute it in a fully integrated manner from pre-purchase to purchase, the product and service experience followed by continued brand engagement through subsequent communications and purchases. Who else can do this? Who else has control over every aspect of their brand experience?
It starts with a truly unique product, coupled with company-controlled retail experience. How many unique brand experiences are there like this, especially in large undifferentiated industries like the mattress industry? And we are just getting started.
The industry dynamic favors Sleep Number’s growth. For context setting let’s quickly review the industry, over $12 billion at retail, with projected growth of 7.1% over the next two years. Non-innerspring is clearly outpacing the industry growth. In fact, over the last eight quarters non-innerspring has accounted for 86% of the unit and 78% of the overall mattress industry growth.With this pace, we are seeing the non-innerspring segment at an inflection point and expect continued share growth. In addition, there has been strong growth in premium, mattress price points greater than $1000. Premium now represents 47% of the industry sales, up from 41% in 2008. We believe Sleep Number is helping drive these shifts in the industry, and we are uniquely positioned to benefit from them with our premium non-innerspring product and exclusive distribution.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV