Bedding manufacturer and retailer Sleep Number (SNBR) reported a mixed first quarter in fiscal 2024, missing analysts’ estimates on revenue and earnings per share. Revenue declined by 10.7% year-over-year to $470.4 million, while the company posted a GAAP loss of $0.33 per share, down from a profit of $0.51 per share in the same quarter last year.
Sleep Number’s revenue miss was largely due to a decline in same-store sales, which fell by 11% year-over-year. The company’s gross margin, however, came in above expectations at 58.7%, in line with the same quarter last year.
Despite the revenue miss, Sleep Number did see some positive developments in the quarter. Free cash flow increased to $24.44 million, up from $3.03 million in the same quarter last year. The company also opened new stores, bringing its total store count to 661 at the end of the quarter.
Looking ahead, analysts have lowered their revenue projections for Sleep Number over the next 12 months, expecting a decline of 1.1%. The company’s stock has seen a modest increase in after-hours trading, currently trading at $13.75 per share.
