SNBR Earnings Prediction
The chart below shows how SNBR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SNBR sees a +4.46% change in stock price 10 days leading up to the earnings, and a -7.98% change 10 days following the report. On the earnings day itself, the stock moves by +0.44%. This data can give you a slight idea of what to expect for the next quarter's release.
SNBR Key Earning Data
2024/Q4
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Gross Margin
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Net Margin
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SNBR Earnings Analysis
Sleep Number Corp Corporation (SNBR.O) Earnings Conference Call
Positive
Earnings Surprise Report: Sleep Number Corporation beats earnings expectations with reported EPS of $-0.21, exceeding expectations of $-0.22.
Business Model Restructuring: The company has made significant progress in restructuring its business model, enhancing financial resilience and operational efficiency.
Q4 EBITDA Growth: Fourth quarter adjusted EBITDA increased by 43% year-over-year, demonstrating strong operational execution despite challenging market conditions.
Gross Margin Improvement: Gross margin for Q4 reached 59.9%, a 330 basis point improvement year-over-year, indicating effective cost management and supplier negotiations.
Cost Efficiency Improvement: Operating expenses were reduced by $28 million in Q4, contributing to a full year reduction of $88 million, showcasing the company's commitment to cost efficiency.
Adjusted EBITDA Achievement: The company achieved a full year adjusted EBITDA of $120 million, aligning with the midpoint of their guidance, reflecting disciplined financial management.
Positive Free Cash Flow: Sleep Number generated $4 million of positive free cash flow for the year, a significant improvement of $70 million from the previous year, indicating better cash management.
Covenant Flexibility Achieved: The company has successfully amended its bank agreement to provide additional covenant flexibility, ensuring financial stability during challenging market conditions.
Negative
Mattress Industry Demand Decline: The mattress industry faced an extremely challenging demand environment throughout 2024, with U.S. mattress volumes at their lowest since 2015.
Decline in Consumer Sentiment: Consumer sentiment has dropped significantly, now 12 points lower than a year ago, impacting purchasing power and buying conditions for durables by 19%.
Sales Decline Overview: Fourth quarter net sales declined 12% year-over-year to $377 million, slightly below expectations, and full year net sales were down 11% versus the prior year.
EBITDA Performance Analysis: Despite a 43% increase in fourth quarter adjusted EBITDA, the overall adjusted EBITDA for the full year declined by 6% due to the significant drop in net sales.
Media Spending Reduction: The company reduced media spending by 18% year-over-year in Q4, indicating a struggle to drive demand in a weak consumer environment.
Consumer Environment Decline: The consumer environment took a sharp downward turn in late January 2025, further impacting sales and search interest in the mattress category.
Restructuring Cost Challenges: The company recorded an additional $4 million in restructuring costs in Q4, totaling $18 million for the year, indicating ongoing challenges in managing operational costs.
Tariff Impact on Costs: The company is facing pressure from recently enacted tariffs, which could further impact costs and pricing strategies.
SNBR FAQs
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SNBR Earning Call Sentiment
Sleep Number Corporation (NASDAQ:SNBR) Q4 2024 Earnings Call Transcript
SNBR.O
18.36%Positive
The earnings call reflects a challenging environment with declining sales and cautious guidance. Despite some positive aspects like gross margin improvement and cost reductions, the lowered EBITDA guidance, declining net sales, and weak consumer demand are concerning. The Q&A session highlighted uncertainties around tariffs and consumer spending, with management avoiding specific guidance. Overall, the negative sentiment from sales decline and cautious outlook outweighs the positives, leading to a negative stock price reaction prediction.
