Minneapolis-based airbed manufacturer and retailer Sleep Number Corp. hit a new sales high in 2017, according to its fourth-quarter and full-year results.
Fourth-quarter sales grew 16% to $363 million, compared with the prior-year quarter. Year over year, annual net sales rose 10%, breaking a record for the company at $1.44 billion.
The quarterly results included a 12% comparable-store sales increase and 4 percentage points of growth from stores opened in the past 12 months. For the year, Sleep Number had a 4% comparable-store sales gain and 7 percentage points of growth from new stores. It ended 2017 with a total of 556 stores in operation versus 540 at the end of 2016.
“Our consumer innovation strategy delivered market share growth and accelerated returns in 2017,” said Shelly Ibach, Sleep Number president and chief executive officer. “We look forward to having our full line of smart beds in market by midyear 2018 and continuing to advance our supply chain initiatives for greater efficiency.”
In the fourth quarter, operating income increased 31% to $20 million, or 5.5% of net sales, a 60 basis-point rate improvement versus the prior year’s fourth quarter. Earnings per diluted share for the fourth quarter of 2017 increased 56% to $0.39.
Sleep Number’s full-year operating cash flow increased 14% to a record $173 million, compared with 2016. Operating income increased 20% in 2017 to $92 million, or 6.4% of net sales, a 60-basis-point improvement compared to 2016.
For the year, earnings per diluted share increased 41% to $1.55, including 6 cents of tax benefits primarily due to application of the Tax Cuts and Jobs Act, the company said.
On Feb. 14, Sleep Number amended its revolving credit facility to increase net aggregate availability from $153 million to $300 million.
Sleep Number expects to generate full-year 2018 earnings per diluted share of $1.70 to $2, a 10% to 29% increase versus full-year 2017. The outlook assumes mid- to high single-digit sales growth for 2018.