Why did SNBR's Q4 earnings fall short of forecasts?

Sleep Number's Q4 earnings fell short of forecasts due to a combination of factors: 1. **Revenue Decline**: Total revenue for the quarter was $376.82 million, which was a significant decrease from the expected $413.17 million. This decline of 8.7% year-over-year was primarily due to a 12.3% decrease in sales. 2. **Consumer Demand Challenges**: The company faced significant challenges due to weakened consumer demand, which changed abruptly midway through the quarter. This demand weakness was observed not only in Sleep Number but across the entire bedding industry. 3. **Store Count Impact**: The reduction in store count contributed to the decline in sales. Sleep Number had 640 stores at the end of the quarter, down from 672 in the same quarter last year. 4. **Market Conditions**: The broader market conditions, including economic challenges and shifts in consumer behavior, posed significant hurdles for Sleep Number. Consumers became more scrutinizing about their spending, leading to a greater emphasis on price and value. In summary, Sleep Number's Q4 earnings fell short due to lower-than-expected sales, primarily driven by a decline in consumer demand and market challenges. These factors, combined with reduced store count and broader market conditions, contributed to the company's revenue falling below forecasts.