Business
Sleep Number Announces Second Quarter 2024 Results
Generated adjusted EBITDA of $28 million for the second quarter Delivered gross margin rate of 59.1% for the second quarter, up 150 basis points versus last
About this update from Sleep Number Corporation
[{"type":"text","content":"\n\nGenerated adjusted EBITDA of $28 million for the second quarter\n\n\n\nDelivered gross margin rate of 59.1% for the second quarter, up 150 basis points versus last year and ahead of expectations\n\n\n\nReduced operating expenses by $19 million year-over-year for the quarter and $44 million year-to-date (both periods before restructuring costs)\n\n\n\nYear-to-date free cash flow increased $21 million compared with the same period last year\n\n\n\nReiterate full-year 2024 adjusted EBITDA outlook of $125 million to $145 million\n\n\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nSleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended June 29, 2024.\n\n\n“The implementation of our transformative initiatives is improving gross margin, operating expenses and free cash flow, as our teams continue to execute sustainable changes across the business. In the second quarter, we delivered gross margin rate expansion and adjusted EBITDA slightly ahead of expectations, despite facing a more challenging industry sales environment than anticipated,” said Shelly Ibach, Chair, President and CEO. “In this environment, we continue to prioritize paying down debt and reducing leverage. Our more durable operating model is enabling us to effectively navigate the persistent macroeconomic headwinds and prolonged industry recession, while positioning us for even greater profitability when the industry recovers.”\n\n\nSecond Quarter Overview\n\n\n\nNet sales of $408 million were down 11% versus the prior year, including approximately six percentage points of pressure from year-over-year order backlog changes\n\n\n\nGross margin of 59.1% was up 150 basis points versus the prior year, driven by ongoing product cost reductions through value engineering and supplier negotiations, efficiency gains in our home delivery and logistics operations and improved product returns rates\n\n\n\nOperating expenses of $234 million (before restructuring charges) were down $19 million versus the prior year’s second quarter, including broad-based cost reductions across the business\n\n\n\nAdjusted EBITDA of $28 million compared to $35 million last year, with a higher gross margin rate and $19 million operating expense improvement, partially offsetting the year-over-year net sales decline\n\n\n\nCash Flows and Liquidity Review\n\n\n\nNet cash provided by ope...