In the second quarter of fiscal 2019, Minneapolis-based Sleep Number Corp. reported net income of $4.3 million — a 16% increase compared with second-quarter 2018 — and revenue of $356 million (up 13%). The airbed manufacturer and retailer’s earnings per diluted share were $0.14, 40% higher than in the prior-year quarter.
Revenue outperformed analysts’ estimates from Zacks Consensus Estimate for the fourth quarter in a row.
Sleep Number generated $70 million from operating activities, invested $34 million in capital expenditures and opened 17 new stores (eight were shuttered) for a total of 594 stores at the close of the quarter.
The company slightly upgraded its 2019 outlook, with profits in the range of $2.35 to $2.75 per share, and anticipated net sales growth for the second half of 2019 to be in the mid- to high single digits.
“Consumer response to Sleep Number’s 360 smart beds has driven double-digit demand growth for four consecutive quarters, including performance at the high end of our expectations in the second quarter,” said Shelly Ibach, president and chief executive officer. “The power of our purpose-driven brand and operational excellence are delivering strong results across our business.”