Sleep Number’s stock falls 25% as company saw demand change ‘abruptly’

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Sleep Number also lowers its guidance for the year, calls for layoffs and store closures

Shares of Sleep Number Corp. tanked 25% in the after-hours session Tuesday after the mattress maker and retailer swung to a surprise quarterly loss, predicted a loss for the full year and said it reached an agreement with a shareholder that had been pushing for change.

Sleep Number’s marketing, digital and sales promotional strategies failed to address the value-seeking and the changes in consumer behavior. Even though people continued to desire Sleep Number’s products, perceived affordability of its smart beds and other wares “became a real barrier,” she said. The cost-restructuring actions are “broad-based” and include layoffs as well as store closures, the company said.

Sleep Number also dialed back its 2023 EPS outlook, calling for a per-share loss of up to 70 cents, including the fourth-quarter restructuring charges.Separately, Sleep Number appointed Stephen E. Macadam and Hilary A. Schneider to its board, effective immediately, expanding the board to 12 people.

 

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Sleep Number’s stock falls 30% as company saw demand change ‘abruptly’Sleep Number also lowers its guidance for the year, calls for layoffs and store closures
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