Minneapolis-based airbed manufacturer and retailer Sleep Number Corp. surpassed Wall Street expectations in fourth-quarter 2018 by posting earnings of $27 million, or $0.81 per share. Analysts polled by FactSet had predicted earnings of $0.72 per share in the fourth quarter.
Full-year earnings climbed 7% to $69.5 million, with full-year EPS of $1.92, up 24% compared with the prior year.
Fourth-quarter net sales were $412 million, 13% higher than the same quarter in 2017. Full-year net sales reached a record $1.53 billion, reflecting a 6% increase over 2017.
Sleep Number’s revolving credit facility increased from $300 million to $450 million.
Operating income for the year increased to $92 million (6% of net sales), while absorbing about $16 million in transition costs to sales of the company’s 360 smart bed.
Sleep Number ended the year with 579 stores, 23 more than at the close of 2017.
“Our purpose-driven brand and our revolutionary new 360 smart beds are driving enthusiastic consumer engagement and accelerated performance, including 12% adjusted net sales growth and 48% adjusted EPS growth for the second half of 2018,” said Shelly Ibach, Sleep Number president and chief executive officer. “We expect this trajectory to continue in 2019 as we advance our initiatives to drive demand, leverage our business model and deploy capital efficiently.”
The company forecasts EPS between $2.25 and $2.75 in 2019, a 17% to 43% increase compared with its 2018 EPS of $1.92.