Sleep Number narrows FY23 EPS view to $1.25-$1.75, consensus $1.55

Prior EPS forecast was $1.25-$2.00. The 2023 outlook assumes net sales are down low to mid-single digits versus the prior year and gross margin improvement of more than 150 basis points versus 2022. The company expects to generate more than $100 million of operating cash flow for the year and positive free cash flows. The company anticipates 2023 capital expenditures of $50 million to $60 million. Prior FY23 revenue view was flat to down mid-single digits.