Sleep Number Reports 19.7% Drop in Q2 Net Sales, Posts Net Loss of $25 Million, EPS Down to $1.09

Reuters
07/30
Sleep Number Reports 19.7% Drop in <a href="https://laohu8.com/S/QTWO">Q2</a> Net Sales, Posts Net Loss of $25 Million, EPS Down to $1.09

Sleep Number Corporation (Nasdaq: SNBR) reported second-quarter 2025 results, showing net sales of $328 million, a decrease of 19.7% year-over-year, attributed to lower volume and a reduced store count. The company recorded a net loss of $25 million, primarily due to reduced net sales, partially offset by decreased operating expenses. Gross profit was $194 million, with a gross profit margin of 59.1%, consistent with the prior year. Operating expenses before restructuring and other non-recurring costs were reduced by 21% to $185 million, driven by cuts in marketing, selling, and administrative expenses. Adjusted EBITDA stood at $24 million, down 17%, with an improved margin by 30 basis points to 7.2%. Net cash from operating activities was $1.2 million, down $22 million year-over-year, while free cash flow was a negative $6.9 million. The company's leverage ratio was 4.56x EBITDAR, close to the covenant maximum of 4.75x. The company is in a turnaround phase, focusing on building its strong brand and differentiated products, with plans to enhance its product assortment and consumer engagement to return to profitable growth.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Sleep Number Corporation published the original content used to generate this news brief via Business Wire (Ref. ID: 20250729982295) on July 30, 2025, and is solely responsible for the information contained therein.

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