Sleep Number Prepares for Q4 With 12.8% Sales Decline Forecast After 19.6% Q3 Drop
Sleep Number saw revenues drop 19.6% YoY to $342.9M in Q3 and full-year EBITDA guidance missed analyst forecasts; for the upcoming quarter consensus projects another 12.8% sales decline. The stock has slumped 53.8% over the past month against a peer group retreat of 9.3%, with analysts targeting $11 per share.
1. Q3 Performance Shortfall
Sleep Number reported Q3 revenues of $342.9 million, a 19.6% year-on-year decline that fell short of analyst estimates, and issued full-year EBITDA guidance below consensus expectations.
2. Q4 Revenue Outlook
Analysts project a 12.8% year-on-year decrease in Q4 sales, mirroring last year’s 12.3% drop, with estimates largely unchanged over the past month.
3. Peer Comparisons
Home furnishing peers posted mixed results: Arhaus delivered 5.1% revenue growth, beating forecasts by 4.1%, while Home Depot saw a 3.8% decline in line with estimates; the segment’s average stock decline was 9.3%.
4. Stock Performance and Targets
Sleep Number’s share price has tumbled 53.8% over the last month versus a 9.3% sector retreat, and the average analyst price target stands at $11 compared with the current $5.13.