Sleep Number Plunges 10.01% on Q1 Loss, Revenue Miss

On May 1, 2025, Sleep Number's stock experienced a significant drop of 10.01% in pre-market trading, reflecting a challenging quarter for the company.

Sleep Number reported a net loss of $0.38 per share for the first quarter of 2025, falling short of analyst estimates of $0.36 earnings per share. This financial performance was further compounded by a 16.4% year-over-year decline in revenue, which missed market expectations.

The company's quarterly loss of $0.38 per share exceeded the Zacks Consensus Estimate of a loss of $0.11, highlighting the financial strain faced by Sleep Number. The revenue for the quarter was reported at $393 million, which was below expectations.

In response to these financial challenges, Sleep Number has outlined plans for significant cost reductions. The company has already achieved a 10% reduction in operating costs in the second quarter compared to the first quarter of 2025 and anticipates annualized cost reductions of $80 million to $100 million.

Despite these efforts, Sleep Number Corporation has chosen not to provide a financial outlook for 2025, citing recent leadership changes and the evolving macroeconomic environment as factors contributing to this decision.