Mattress company, Sleep Number Corp. (NASDAQ: SNBR) plunged in pre-market trading at the time of writing on Friday after the company’s profits narrowed significantly in the second quarter to earnings of $0.03 per share as compared to $1.54 in the same period last year. This was still better than analysts’ expectations of a loss of $0.01 per share in Q2.
The company’s sales fell by 16% year-over-year in Q2 to $459 million which was worse than analysts’ expectations of $471.4 million.
Looking forward to FY23, the company has projected earnings to be in the range of $1.25 to $1.75 per share while sales are expected to decline year-over-year in the low to mid-single digits. Sleep Number anticipates generating more than $100 million of operating cash flow for the year and positive free cash flows.
Today’s fall in the stock price aside, SNBR stock has soared by more than 40% year-to-date.
