Bedding manufacturer and retailer Sleep Number (NASDAQ: SNBR) will be announcing earnings results this Thursday morning. Here’s what investors should know.
Sleep Number missed analysts’ revenue expectations last quarter, reporting revenues of $342.9 million, down 19.6% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Is Sleep Number a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sleep Number’s revenue to decline 12.8% year on year, in line with the 12.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Sleep Number’s peers in the home furnishing and improvement retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Arhaus delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 4.1%, and Home Depot reported a revenue decline of 3.8%, in line with consensus estimates. Arhaus traded down 1.6% following the results while Home Depot’s stock price was unchanged.
Read our full analysis of Arhaus’s results here and Home Depot’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the home furnishing and improvement retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 9.3% on average over the last month. Sleep Number is down 53.8% during the same time and is heading into earnings with an average analyst price target of $11 (compared to the current share price of $5.13).
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