Fri, Mar 7, 9:28 PM (50 days ago)
**Sleep Number Corporation (SNBR) 2024 10-K Summary** Sleep Number Corporation reported a challenging fiscal year ending December 28, 2024, with net sales declining by 11% to $1,682 million, primarily due to ongoing recessionary pressures in the mattress industry. The company experienced a comparable sales decrease of 10% across its retail channels, with average sales per store falling to $2.6 million. Operating income remained stable at $23 million, supported by an $86 million reduction in operating expenses, although net loss increased to $20 million. Strategically, Sleep Number focused on enhancing gross margins, achieving a gross profit rate of 59.6%, up 1.9 percentage points from the previous year. The company undertook significant cost reduction initiatives, cumulatively reducing operating costs by $173 million over two years. Adjusted EBITDA improved to $120 million, reflecting operational resilience despite revenue declines. Looking ahead, Sleep Number aims to strengthen its market position through continued innovation in sleep technology and cost management, albeit facing risks from economic conditions and competitive pressures. As of year-end, the company had $547 million in borrowings under its revolving credit facility and maintained compliance with all financial covenants.