Sleep Number Corporation (SNBR) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

No matter if you want to track your sleep data like me or just wake up refreshed because our beds effortlessly adjust to you night after night without ever looking at your device, our years of innovation meet your needs. With the only bed backed with 33 billion hours of sleep data and counting, we are ahead of the curve, and that allows us to focus our resources on the here and now of our customers' needs. Specifically, we will deprioritize adjacent opportunities where returns are uncertain or will take longer to realize. Instead, we will focus our resources on maintaining and improving our core technologies and introducing additional advancements while driving costs out of the product. Together, these initial efforts are the first steps to creating a more efficient and focused company for shareholders, team members, and customers. We expect the collective actions to reduce expenses by about $80 to $100 million before restructuring costs on an annualized basis as compared to our Q1 2025 cost structure. Since I joined earlier this month, we have already reduced our Q2 operating expenses by approximately 10% compared to the Q1 2025 cost structure. We are also thinking long-term and are evaluating more fundamental changes to position Sleep Number for future success. Now is a natural time to challenge assumptions and question all aspects of our business. Over the coming weeks, we intend to take a closer look at our strategy and operations. Everything is on the table. We are looking at our supply chain, distribution strategy, product selection, and geographic reach. As I mentioned, our goal is to create a flexible cost structure that will set us up for growth and expansion. This is just the beginning. We are approaching this work with an open mind and a bias towards bold ...