Sleep Number’s Annual Sales Break Record

Airbed manufacturer and retailer Sleep Number Corp. had net sales of $441 million in its fourth quarter of fiscal 2019, a 7% increase compared with the fourth quarter of fiscal 2018. The previous year’s final quarter was impacted by delivery delays of $24 million in sales that shifted from the third to the fourth quarter. The Minneapolis-based company’s earnings per diluted share for the quarter was $0.82, on fourth-quarter income of $24.1 million, compared with $0.81 of EPS for the prior-year quarter. 

“Consumer response to our revolutionary 360 smartbeds has been exceptional, driving six consecutive quarters of double-digit demand growth, including acceleration in the fourth quarter,” said Shelly Ibach, Sleep Number president and chief executive officer. “Our differentiated consumer innovation strategy drove record results again in 2019, including an 11% net sales increase to $1.7 billion and a 41% increase in diluted EPS to $2.70 per share. We begin the next chapter of our strategic journey as a purpose-driven company in the health and wellness space. Executing our ambitious vision, while investing to ensure broad consumer relevance, is delivering superior returns for our shareholders.”

Full-year net sales grew 11% to a record $1.7 billion, the company said, with full-year diluted EPS up 41% to $2.70 on net income of $81.8 million.

In fiscal 2020, Sleep Number also generated a record $189 million in net cash from operating activities, up 44% compared with the prior year. It invested $59 million in capital expenditures, compared with $46 million in fiscal 2020.

Sleep Number ended the year with 611 stores, having opened 11 and closed three in the fourth quarter. For the full year, it opened 59 stores and closed 27. 

The company predicts full-year fiscal 2020 diluted EPS of $3.10, a 15% increase compared with 2019. The outlook assumes high single-digit net sales increases for 2020.