Sleep Number Announces Record First Quarter 2021 Results
Sleep Number Corporation (Nasdaq: SNBR) reported a 20% increase in net sales to $568 million for Q1 2021, with comparable store sales also up by 20%. Despite temporary foam supply constraints causing over $50 million in delayed deliveries, gross profit rose 18% to a record $356 million, and operating income increased by 45% to $76 million. Earnings per diluted share surged 85% to $2.51. The company generated $112 million in net cash from operations and raised its 2021 EPS outlook to at least $6.50, projecting strong financial performance moving forward.
- Net sales increased 20% to $568 million.
- Gross profit rose 18% to a record $356 million.
- Operating income increased 45% to $76 million.
- Earnings per diluted share surged 85% to $2.51.
- Cash flow from operations was $112 million, up 31% from last year.
- ROIC improved to 27.6%, up 850 bp year-over-year.
- Share repurchase authorization replenished to $600 million.
- Raised 2021 EPS outlook to at least $6.50.
- Over $50 million in deliveries shifted out of the quarter due to foam supply constraints.
Sleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended April 3, 2021.
“Guided by our purpose to improve the health and wellbeing of society through higher quality sleep, Sleep Number is broadening our brand relevance and driving significant performance acceleration,” said Shelly Ibach, President and CEO. “Our first-quarter demand growth of greater than
First Quarter Overview
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Net sales increased
20% to$568 million with a20% comparable store sales gain; more than$50 million of deliveries (two weeks) shifted out of the quarter due to temporary foam supply constraints -
Gross profit increased
18% to a record$356 million or62.6% of net sales -
Operating income increased
45% to$76 million , or13.4% of net sales, up 220 bp versus the prior-year’s first quarter -
Earnings per diluted share increased
85% to a record$2.51
Cash Flows and Liquidity Review
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Generated
$112 million in net cash from operating activities in the first quarter, up31% versus the prior year; invested$12 million in capital expenditures and$167 million in Sleep Number stock - Leverage ratio of 2.3x EBITDAR at the end of the first quarter, compared with 2.6x a year ago
-
Increased return on invested capital (ROIC) to
27.6% for the trailing twelve-month period, up 850 bp versus the prior-year comparable period -
Amended revolving credit facility to expand the aggregate availability from
$450 million to$600 million
Share Repurchase Authorization
The company also replenished its outstanding share repurchase authorization to
Financial Outlook
The company raised its 2021 earnings per diluted share outlook to at least
Conference Call Information
Management will host its regularly scheduled conference call to discuss the company’s results at 5 p.m. EDT (4 p.m. CDT; 2 p.m. PDT) today. To access the webcast, please visit the investor relations area of the Sleep Number website at https://ir.sleepnumber.com. The webcast replay will remain available for approximately 60 days.
About Sleep Number Corporation
Individuality is our foundation at Sleep Number. Our purpose driven company is comprised of over 5,000 passionate team members who are dedicated to our mission of improving lives by individualizing sleep experiences. Our 360® smart beds provide each sleeper with adjustable, personalized comfort for proven quality sleep. We have improved over 13 million lives as we strive to improve society’s wellbeing through higher quality sleep.
Sleep science and data are the core of our innovations. Our award-winning 360 smart beds benefit from our proprietary SleepIQ® technology - learning from over 9 billion hours of highly accurate sleep data - to provide effortless comfort and individualized sleep health insights, including your daily SleepIQ® score.
