- Sleep Number Corp (NASDAQ:SNBR) reported a first-quarter FY22 sales decline of 7% year-on-year to $527 million, missing the consensus of $540.32 million.
- The demand decreased 3% for the quarter, reflecting the impact of Omicron in January and the war in Ukraine in late February.
- The gross margin for the quarter contracted by 530 basis points to 57.3%.
- The operating expenses for the quarter rose 6.6% Y/Y to $297.9 million.
- Operating margin was 0.8% versus 13.4% last year. Operating income for the quarter fell 94.2% to $4.4 million.
- The company held $1.6 million in cash and equivalents as of April 2, 2022. Net cash provided by operating activities for the quarter totaled $24.6 million.
- EPS of $0.09 missed the analyst consensus of $0.35.
- "External factors continue to disrupt global supply and weaken consumer confidence, resulting in increased business complexity and volatility," said CEO Shelly Ibach.
- Outlook: Sleep Number sees FY22 EPS of $5.00 - $6.00, against the consensus of $5.77.
- It expects low double-digit net sales growth for FY22.
- Price Action: SNBR shares closed lower by 1.64% at $51.47 on Wednesday.
