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SNBR

Sleep Number NasdaqGS:SNBR Stock Report

Last Price

US$36.11

Market Cap

US$793.1m

7D

-5.9%

1Y

-65.8%

Updated

28 Sep, 2022

Data

Company Financials +
SNBR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends0/6

SNBR Stock Overview

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States.

Sleep Number Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sleep Number
Historical stock prices
Current Share PriceUS$36.11
52 Week HighUS$105.98
52 Week LowUS$29.68
Beta1.98
1 Month Change-11.63%
3 Month Change16.67%
1 Year Change-65.78%
3 Year Change-8.21%
5 Year Change10.19%
Change since IPO165.84%

Recent News & Updates

Sep 08
Is There Now An Opportunity In Sleep Number Corporation (NASDAQ:SNBR)?

Is There Now An Opportunity In Sleep Number Corporation (NASDAQ:SNBR)?

Sleep Number Corporation ( NASDAQ:SNBR ), is not the largest company out there, but it received a lot of attention from...

Sep 06

Sleep Number renews three-year partnership with Los Angeles Rams

Sleep Number Corp (NASDAQ:SNBR) said it had renewed the three-year commitment with the Los Angeles Rams and it will continue to be the "Official Sleep + Wellness Partner" for the LA Rams through the 2024 season. The two organizations first partnered during the 2021 season after Rams’ players adopted Sleep Number’s 360 smart bed into their training regimens. Under the partnership, the Rams have launched a video series called "Rest For Success, presented by Sleep Number,” which focuses on running back Cam Akers gearing up for his comeback season and sharing his recovery: sleep.

Aug 16

Sleep Number: Still A Great Prospect For Long-Term Investors

Sleep Number has done well from a revenue and profitability perspective lately, but management expects tough times this year. Current economic conditions are certainly harming the company, but this won't last forever. Given how cheap shares will look once the business returns to more normal levels of profitability, shares should be considered by long-term investors. Sometimes, in order for an investment to work out, we need to exercise patience. Sometimes, the level of patience required is extreme. Such is the case, I believe, when it comes to sleep company Sleep Number (SNBR). This business, which produces mattresses, including technologically advanced ones, and sells them through its stores, has not fared particularly well in recent months. During times of economic instability, particularly when costs are rising, it can be difficult to pass on those expenses to customers. This is especially true when the product that you produce is something that people can't delay the purchase of with little to no consequence. The good thing for investors, however, is that while market conditions might be weak, the long-term trajectory of this industry must always be up. Because of this, and because of how cheap shares are if we assume an eventual return to normalcy, I have decided to retain my ‘strong buy’ rating on the business. Interesting times The last time I wrote an article about Sleep Number was in late December of last year. In that article, I said that the company had demonstrated itself to be a great business that was capable of achieving strong sales and cash flow growth over an extended period of time. I predicted that this trend would continue as management increased their investments on sleep technology. And I also said that shares of the company looked cheap, making it a great long-term prospect to consider. Unfortunately, things have not gone exactly as planned. While the S&P 500 is down by 10.6%, shares of Sleep Number have declined by 36.2%. Author - SEC EDGAR Data To say that this decline was completely unwarranted would be incorrect. But I do think the market is being short-sighted. But before we get to that point, we should first discuss how the company has performed from a fundamental perspective since I last wrote about it. To begin with, let's touch on the entirety of its 2021 fiscal year. When I last wrote about the business, we only had data covering the first three quarters of that year. For 2021 as a whole, sales came in at $2.19 billion. This was up by 17.7% from the $1.86 billion generated just one year earlier. Management attributed this rise to a 17% increase in comparable store sales. In addition to that, the company saw the number of locations that had an operation rise from 602 to 648. On the bottom line, things were also looking up. Net income rose from $139.2 million in 2020 to $153.7 million last year. Operating cash flow increased from $279.7 million to $300 million. And EBITDA rose from $33.3 million to $276.7 million. Author - SEC EDGAR Data By all accounts, 2021 proved to be a good year for the firm. But moving into the 2022 fiscal year, the picture has been a bit more complicated. Yes, revenue in the first half of the year came in somewhat weak, climbing from $1.05 billion in the first half of 2021 to $1.08 billion the same time this year. Even worse has been profitability. Net income fell from $88.9 million to $37 million. Operating cash flow fell from $161.4 million to $28.7 million. Even if we adjust for changes in working capital, it would have fallen from $131.6 million to $73.4 million. And meanwhile, EBITDA for the company fell from $337.4 million to $222.7 million. This weakness came even as the number of locations in operation rose from 602 to 659. Instead, the company was impacted by a 3% decline in comparable store sales. Costs also negatively affected the firm. Author - SEC EDGAR Data This picture changes to some degree when we look at justice the latest quarter alone. Sales, for instance, came in strong at $549.1 million. That's 13.4% above the $484.3 million generated one year earlier. The company benefited here not only from the aforementioned rise in store count, but also from a 10% rise in comparable store sales. This, in turn, also helps to push profitability for the business up. Net income rose from $22.3 million in the second quarter of 2021 to $34.9 million the same time this year. Yes, operating cash flow did fall, dropping from $225.8 million to $198.1 million. But if we adjust for changes in working capital, it would have risen modestly from $42.3 million to $51.6 million. Over that same window of time, EBITDA also increased, rising from $50.7 million to $69.8 million. When it comes to the 2022 fiscal year, management has not provided all that much guidance. In addition to that, what guidance they have provided is within a very wide range. For instance, earnings per share for the year should come in at between $3 and $4. At the midpoint, however, this should imply net income of $76.9 million. If this comes to fruition, it would translate to a roughly 50% drop compared to the $153.7 million the company generated in 2021. The company also said that the outlook assumes a low single-digit net sales growth for the company on a high single-digit demand decline, with any sales growth coming from the servicing of excess backlog. Although this may seem scary to some investors, we need to keep in mind that, in the long run, the mattress industry has always grown. Even in the worst financial crisis of our lifetime, the 2008 collapse, the sale of mattresses dropped by 9% for two years in a row. After that, it began rebounding. Any sort of decline that we experience now is unlikely to be that horrible.

Shareholder Returns

SNBRUS Specialty RetailUS Market
7D-5.9%-0.4%-2.0%
1Y-65.8%-35.6%-20.3%

Return vs Industry: SNBR underperformed the US Specialty Retail industry which returned -37.3% over the past year.

Return vs Market: SNBR underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is SNBR's price volatile compared to industry and market?
SNBR volatility
SNBR Average Weekly Movement10.1%
Specialty Retail Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SNBR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SNBR's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19875,500Shelly Ibachhttps://www.sleepnumber.com

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides adjustable bases under the FlextFit, and smart beds under the Sleep Number 360 brands.

Sleep Number Corporation Fundamentals Summary

How do Sleep Number's earnings and revenue compare to its market cap?
SNBR fundamental statistics
Market CapUS$793.12m
Earnings (TTM)US$101.87m
Revenue (TTM)US$2.21b

7.8x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNBR income statement (TTM)
RevenueUS$2.21b
Cost of RevenueUS$911.26m
Gross ProfitUS$1.30b
Other ExpensesUS$1.20b
EarningsUS$101.87m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.64
Gross Margin58.74%
Net Profit Margin4.61%
Debt/Equity Ratio-100.1%

How did SNBR perform over the long term?

See historical performance and comparison