Sleep Number Corporation · NASDAQ:SNBR
Sleep Number — Q2 2023 Earnings Presentation
13 slides from Sleep Number's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation Sleep Number Corporation (SNBR) July 2023 1
Slide 2: Forward-looking Statements
Forward-looking Statements Statements used in this presentation relating to future plans, events, financial results or performance, such as the company’s expectations for long-term growth drivers, advancements in sleep health and science and anticipated product releases, are forward-looking statemen
Slide 3: The Sleep Number Difference
T h e S l e e p N u m b e r D i f fe re n c e Sleep Number is a wellness technology company. We are guided by our purpose to improve the health and wellbeing of society through higher quality sleep; to date, our innovations have improved over 14.5 million lives. Our wellness technology platform help
Slide 4: Advancing our 2023 priorities
Advancing our 2023 priorities • Competing effectively by leveraging our brand building, innovation and connected smart sleepers • Next gen smart bed rollout completed in third quarter ahead of important Labor Day selling period • Ongoing success of Climate360® introduced late last year at the high e
Slide 5: Second-half 2023 outlook
Second-half 2023 outlook Second Half First Half Second Half (Jul-Dec) (Jan-Jun) (Jul-Dec) 2022 Actuals 2023 Actuals 2023 Outlook Up mid-single to Demand (vs. LY) Down high teens Down high-single digits low-double digits Down low-single to up Net Sales $1.038B (-8% YOY) $985M (-8% YOY) mid-single dig
Slide 6: 2023 capital allocation priorities focused on liquidity and reducing leverage
2023 capital allocation priorities focused on liquidity and reducing leverage Expect leverage below 4.0x EBITDAR by year-end . 5.0x • Focused on generating cash flow and reducing leverage as we Leverage covenant maximum 4.7x 4.4x 4.5x navigate a challenging macro and industry environment 4.0x <4.0x
Slide 7: Mattress industry unit volumes below 2016 levels
Mattress industry unit volumes below 2016 levels • Industry is nearing trough levels • Returning to 2019 industry unit levels would result in approximately 60,000 incremental units (or $350 million to $400 million in incremental revenue) for Sleep Number as we capture our share of industry unit volu
Slide 8: Meet the Next Gen smart beds
Meet the Next Gen smart beds Now ALL with temperature benefits. From $1099 Options shown 8
Slide 9: Our Climate360 smart sleepers get up to 44 minutes more restful sleep per night
Our Climate360® smart sleepers get up to 44 minutes more restful sleep per night* *Based on average SleepIQ® data 11/1/22 - 2/28/23 of Climate360® sleepers engaging with Sleep Number® setting, SleepIQ®, adjustable base and temperature settings vs. non-Climate360 sleepers who have certain of these fe
Slide 10: Sleep Number wellness technology platform supports digital health products and services
Sleep Number wellness technology platform supports digital health products and services TODAY TOMORROW FUTURE SLEEP INNOVATION SLEEP HEALTH CONNECTED SLEEP LEADER LEADER HEALTH LEADER Sleep Facilitated Sleep Health Connected Assessment Diagnosis and Insights Solutions Treatment Multidimensional slee
Slide 11: Sleep Number connected sleeper ecosystem
Sleep Number connected sleeper ecosystem • Our millions of smart sleepers are highly engaged because they benefit from the combination of our physical smart bed with proprietary digital features and insights • Sleep Number’s monthly active user rates are best-in-class • Engagement of our smart sleep
Slide 12: Driving breakthrough performance
Driving breakthrough performance 2023 Outlook 2024 - 2026 Net Sales Down low to mid-single digits High-single digit sales CAGR Gross Margin +150 bp versus prior year Low 60’s rate EBITDA Margin 8% to 9% (+150 bp vs. 2022) Low double-digit EBITDA margin Earnings Per Share $1.25 to $1.75 Growth at 3x
Slide 13: Sleep well. Dream big.
Sleep well. Dream big.