Can SNBR rebound in Q1 2025 earnings?

**Sleep Number's (SNBR) likelihood of a rebound in Q1 2025 earnings appears low based on current indicators.** Here's why: 1. **Challenging Market Conditions**: Sleep Number has faced significant challenges, including a decline in net sales and revenue misses. The company's performance in Q4 2024 highlighted ongoing difficulties, with net sales dropping 12% year-over-year to $377 million. 2. **Revenue Miss and Stock Reaction**: The company reported a revenue miss in Q4 2024, with estimated revenue falling short at $391.57 million. Following the earnings release, the stock dropped 9.62% in aftermarket trading, indicating investor concerns over the company's revenue performance. 3. **Financial Performance**: Sleep Number's financials show a net loss of $7.48 million for Q1 2024, slightly worse than the estimated loss of $7.02 million. The company also reported a decrease in net sales year-over-year, attributed to changes in order backlog. 4. **Market Sentiment and Analyst Opinions**: The stock has experienced fluctuations, with a one-year low and high of $17.50 and $50.61, respectively. Analysts have expressed concerns over the recent decline in quarterly revenue, which saw a decrease of 16.4% compared to the same period last year. 5. **Strategic Adjustments**: Despite these challenges, Sleep Number has introduced new product series like the Climate Cool, focusing on higher-margin products. The company has also improved its gross profit margin to 58.9% and increased its free cash flow. In conclusion, while Sleep Number has made strategic adjustments and improved certain financial metrics, the company's history of revenue misses and current market conditions suggest that a rebound in Q1 2025 earnings is not currently supported by the available data. Investors should monitor the company's performance closely, especially in the context of market fluctuations and ongoing strategic initiatives.