Minneapolis-based Sleep Number Corp. posted strong earnings in its third quarter of 2018, which ended Sept. 29. Net sales of $415 million reflected a 3% increase. But when adjusted for a shift in its order backlog and hurricane impacts from one year ago, revenue rose 12%, the company said.
During the quarter Sleep Number concluded close-out sales on older models and finished converting its assortment to the new 360 Smart Bed, which launched in 2017. September was the first full month of shipping only the 360 Smart Bed and an order backlog pushed many sales into the fourth quarter, the company explained during a call with investors.
“Our business has gained significant momentum since completing the transition to all Sleep Number 360 Smart Beds, including 19% year-over-year sales order growth in the last seven weeks of the third quarter,” said Shelly Ibach, president and chief executive officer of Sleep Number. “The timing of robust sales order growth in the quarter shifted deliveries from the third to the fourth quarter. Double-digit sales order growth has continued into October. We are confident in the performance of our business and reiterate our 2018 full-year (earnings per share) guidance midpoint of $1.85.”
Quarterly earnings were $18.3 million, or $0.52 per share, compared with $25.6 million, or $0.62 cents per share in the third quarter of 2017. But adjusted EPS for the third quarter were $0.75, a 34% increase over the prior-year quarter’s adjusted EPS.