Business
Sleep Number Announces Second Quarter 2020 Results
High-single digit demand growth for the last two months of the quarter combined, after being down 48% in fiscal April More than 95% of our retail stores are
About this update from Sleep Number Corporation
[{"type":"text","content":"\n\nHigh-single digit demand growth for the last two months of the quarter combined, after being down 48% in fiscal April\n\n\nMore than 95% of our retail stores are now open compared with 53% open on average during the second quarter\n\n\nCash and liquidity available under our credit facility was $295 million at the end of the second quarter, a $129 million increase versus the same period last year\n\n\n\n \n\n MINNEAPOLIS--(BUSINESS WIRE)--\nSleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended June 27, 2020.\n\n\n“The mission of Sleep Number has never been more important or more relevant than it is today. The pandemic has heightened individuals’ concerns about their immunity and resilience, and there is increased understanding that sleep is vital for healthy living. With the proven quality sleep of our proprietary 360® smart beds, Sleep Number is at the forefront of delivering this life-changing benefit,” said Shelly Ibach, President and CEO. “Our increased relevance with consumers, combined with the significant competitive advantages of our integrated business model and the ingenuity of our purpose driven team, drove our stronger-than-expected second quarter results.”\n\n\nSecond Quarter Overview\n\n\n\nSecond quarter financial results reflect the significant impact of COVID-19\n\n\nNet sales were $285 million, down 20% compared with $356 million last year\n\n\nGross profit rate of 57.2%, compared with 61.0% last year, reflecting product mix changes and sales deleverage as a result of COVID-19\n\n\nOperating expense reduction of $35 million or 17% versus prior year, reflects immediate actions taken to reduce expenses\n\n\nNet loss per diluted share of $0.45, compared to net income per diluted share of $0.14 last year\n\n\n\nCash Flows and Liquidity Review\n\n\n\nGenerated $87 million in net cash from operating activities for the first six months of 2020, up 24% versus last year, with year-to-date operating free cash flows of $65 million, up 79% versus prior year\n\n\nInvested $22 million in year-to-date capital expenditures compared to $34 million for the prior year period\n\n\nRecently acquired a patent portfolio from Gentherm to further strengthen our competitive position related to cooling and heating beds and bedding\n\n\nReturn on invested capital (ROIC) of 17.2% for the trailing twelve-mo...