Business
Sleep Number Announces Second Quarter 2022 Results
Second-quarter net sales increased 13% and diluted EPS grew 75% versus the prior year Year-to-date net sales increased 2% with year-to-date diluted EPS of
About this update from Sleep Number Corporation
[{"type":"text","content":"\n\nSecond-quarter net sales increased 13% and diluted EPS grew 75% versus the prior year\n\n\nYear-to-date net sales increased 2% with year-to-date diluted EPS of $1.60 versus $3.44 for the same period last year on constrained electronics supply, inflation pressures and low consumer sentiment\n\n\nUpdated 2022 EPS outlook to a range of $3.00 to $4.00 per share\n\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nSleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended July 2, 2022.\n\n“Our second-quarter performance reflects our team’s incredible agility in navigating a complex business environment. Ongoing electronic supply disruptions, inflationary pressures and record low consumer sentiment are reflected in our revised 2022 EPS outlook. We are taking prudent actions to preserve liquidity and financial flexibility,” said Shelly Ibach, Chair, President and CEO. “Sleep Number brand metrics are strong, and we continue to advance our life changing innovations. We are positioned to rebound rapidly as consumer confidence and flow of electronic parts improve.”\n\nSecond Quarter Overview\n\n\nNet sales increased 13% to $549 million, while demand decreased 12% for the quarter, reflecting record low consumer sentiment\n\n\nGross margin of 59.2% of net sales, more than 100 basis points above expectations due to favorable product mix which more than offset operating inefficiencies resulting from the uneven flow of electronics supply\n\n\nEarnings per diluted share increased 75% to $1.54, compared with $0.88 for the prior year\n\n\nCash Flows and Liquidity Review\n\n\nYear-to-date net cash from operating activities of $29 million were pressured by year-over-year changes in working capital and lower net income\n\n\nInvested $37 million in capital expenditures and $55 million in Sleep Number stock for the first six months of the year; planning no share repurchases in the third quarter as we prioritize performance-driving investments\n\n\nLeverage ratio of 3.3x EBITDAR at the end of the second quarter; more than $375 million of liquidity remains against current debt facility\n\n\nReturn on invested capital (ROIC) was 21.8% for the trailing twelve-month period\n\n\nFinancial Outlook\n\nThe company updated its full-year 2022 diluted EPS outlook to a range of $3.00 to $4.00 per share based on macro conditions. The outlook assumes l...