Earnings in the quarter were 80 cents a share, above forecasts of 72 cents. Revenue was $426.5 million, below estimates of $428 million. Comparable-store sales rose 5% vs. estimates of 6.2%, while gross margin of 61.5% came in below the 61.9% estimate.
The company reiterated its full-year outlook, saying it expects profit of $2.25 to $2.75 a share vs. estimates of $2.44.
Shares were down 15.8% to $40.45 on Thursday.
Wedbush analyst Seth Basham, who has a neutral rating and $37 price target on the stock, wrote, "SNBR is struggling to drive comparable mattress unit comps," which is "our primary concern" as "it is difficult to consistently drive revenue growth on declining comp units. ... As implied unit comp comparisons toughen through 2019, and we do not expect a sharp improvement in macro or other drivers, we expect continued weakness in this key metric."
Barclays analyst Matthew McClintock, who has an equal-weight rating and $38 price target, wrote that cost pressures "continue to mute significant margin upside from efficiencies and eliminating transition costs."
Analysts have an average hold rating and $36 target price, according to FactSet.