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Sleep Number Drops; Misses Guidance, Sees Strong Deliveries

Sleep Number missed analysts' Q2 expectations but the CEO sees 'strong delivery volumes' for the rest of the year.

Shares of Sleep Number  (SNBR) - Get Sleep Number Corporation Report dropped on Wednesday after the bed and accessories company reported earnings and guidance that lagged analysts' expectations, hurt by supply-chain issues.

The Minneapolis company reported second-quarter earnings of 88 cents a share, swinging from a year-earlier loss of 45 cents a share. Revenue advanced 70% to $484.3 million from $284.9 million. 

Analysts surveyed by FactSet were expecting Sleep Number to report earnings of $1.10 a share on revenue of $511 million. 

"We have made substantial progress in addressing temporary component shortages and expect strong delivery volumes the balance of the year," Chief Executive Shelly Ibach said in a statement. 

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For the year, Sleep Number raised its earnings outlook to $7.25 a share, from its prior outlook of at least $6.50. Analysts polled by FactSet were expecting $7.28 a share. 

Shares of Sleep Number at last check fell 13% to $97.12. The stock on Wednesday has traded off as much as 17% at $93.35. 

"Robust consumer demand for Sleep Number 360 smart beds exceeded our expectations, while near-term supply constraints limited delivered net sales in June and July," Ibach said.

"Sleep Number teams are driving higher than expected operational efficiencies," the executive said.