Sleep Number Corporation (SNBR)

In the past six months, Sleep Number's stock was impacted by Q3 2025 earnings, which reported an EPS of $0.07, missing analysts' estimates, and revenue declined 19.6% year-over-year. Sleep Number lowered its full-year revenue and EBITDA guidance. The company amended and extended its bank agreement through 2027. Sleep Number earned the #1 ranking in customer satisfaction in the J.D. Power 2025 U.S. Mattress Satisfaction Study. Amy O'Keefe was appointed as CFO, and the ComfortMode™ Mattress was introduced. The stock price experienced a significant decline of 47.23% from January 10, 2025, to January 9, 2026.

The mattress industry has been experiencing a recession for the past three years, impacting consumer demand for Sleep Number's products. The company's demand has been shrinking, with same-store sales declining and a year-on-year drop in Q3 2025. Management assumes that demand will not worsen. Sleep Number observed a positive month-over-month increase in demand in October 2025 and anticipates favorable performance due to improved product availability and strength in the premium sleep segment. The stock has shown a tendency to gain an average of 2.5% in the two-week period preceding earnings announcements.

Sleep Number Corp. is a wellness technology company focused on designing, manufacturing, marketing, distributing, retailing, and servicing sleep solutions. Its core business revolves around smart beds with adjustable firmness and integrated SleepIQ technology. The company's product portfolio includes adjustable bases, pillows, sheets, bedding accessories, furniture, and upholstered beds. Sleep Number uses a vertically integrated, direct-to-consumer sales model.

Sleep Number primarily operates within the United States, serving customers across all 50 states. The company maintains a network of over 600 retail stores nationwide, complemented by its online presence and direct sales channels. Its headquarters are located in Minneapolis, Minnesota, with manufacturing and distribution facilities situated in South Carolina and Utah.

Sleep Number was recognized as #1 in customer satisfaction with mattresses purchased in-store and online in the J.D. Power 2025 U.S. Mattress Satisfaction Study and earned a spot on the 2024 Forbes Best Customer Service List. However, Sleep Number's Net Promoter Score (NPS) is -47, with a majority of customers categorized as Detractors. The company's product quality score is 2.1 out of 5. Sleep Number expanded its health and wellness offerings with the launch of the BreatheIQ App and a partnership with GEM Health and introduced the new ClimateCool smart bed.

Sleep Number's ownership is primarily held by institutional investors and company insiders. Institutional investors collectively hold a significant portion of the shares, ranging from approximately 58.31% to 85%. Major institutional shareholders include Stadium Capital Management LLC, BlackRock, Inc., and The Vanguard Group, Inc. Insiders hold between 4.06% and 21.04% of the shares. Notable insider transactions in 2025 included CEO Linda Findley, CFO Francis K. Lee, and Interim CFO Robert P. Ryder acquiring shares.