Business
Sleep Number Announces Second Quarter 2023 Results
Second quarter net sales were $459 million; demand down mid-single digits versus the prior year Reports second quarter diluted EPS of $0.03 2023 EPS outlook
About this update from Sleep Number Corporation
[{"type":"text","content":"\n\nSecond quarter net sales were $459 million; demand down mid-single digits versus the prior year\n\n\n\nReports second quarter diluted EPS of $0.03\n\n\n\n2023 EPS outlook updated to a range of $1.25 to $1.75 per share\n\n\n\nAnnounces the appointment of Francis Lee to Executive Vice President and Chief Financial Officer\n\n\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nSleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended July 1, 2023.\n\n\n“As we continue to navigate a challenging macro environment, our business is well positioned for growth. Demand has steadily improved year-to-date, and we expect this trend to continue in the back-half of the year as we benefit from the launch of our entire next generation smart bed portfolio, the Climate360 smart bed, and the advancement of our ‘Sleep Next Level’ advertising campaign with the start of the NFL season,” said Shelly Ibach, Chair, President and CEO, Sleep Number. “We have taken actions across the business to drive efficiencies and remain on track to expand margins and generate more than $100 million in cash from operations in 2023.”\n\n\nToday, Sleep Number also announced the appointment of Francis Lee to Executive Vice President and Chief Financial Officer. Details can be found on the Sleep Number newsroom.\n\n\nSecond Quarter Overview\n\n\n\nNet sales decreased 16% to $459 million, with demand down mid-single digits; demand improved throughout the second quarter, although slightly below our expectations\n\n\n\nGross margin was 57.6% and in line with our expectations; as a reminder prior year second quarter results benefitted from the delivery of more than $100 million in margin-rich backlog\n\n\n\nOperating expenses were reduced by $22 million to $253 million compared with $275 million last year\n\n\n\nEarnings per diluted share of $0.03 compared with $1.54 for the same period last year\n\n\n\nYear-to-Date Overview\n\n\n\nNet sales decreased 8% to $985 million, with demand down high-single digits versus prior year\n\n\n\nGross profit decreased to $575 million compared with $627 million for the prior year; gross margin rate of 58.3% was consistent with the same period last year and up 290 bp versus the back half of last year\n\n\n\nOperating income of $37 million compared with $54 million last year, with an 8% decline in gross margin dollars, partially ...