Reported net sales of $389 million and first quarter EPS of $0.52
Generated operating free cash flow of $40 million and repurchased $75 million of the company's common stock
Reiterates full-year 2018 earnings outlook of $1.70 to $2.00 per diluted share
MINNEAPOLIS - (April 18, 2018) - Sleep Number Corporation (NASDAQ: SNBR) today reported first quarter 2018 results for the period ended March 31, 2018.
“We are on track to complete the transition to our revolutionary Sleep Number 360® smart beds
by mid-year. Our smart beds differentiate and strengthen our competitive position through measurably better sleep,” said Shelly Ibach, President and CEO of Sleep Number. “We expect to benefit from the related growing enthusiasm for our brand and operating efficiencies as we progress our initiatives this year.”
First Quarter Overview
Net sales were $389 million, down 1% versus 12% growth for the prior year
Gross profit rate of 61.1% versus 62.6% for the same period last year, primarily due to inefficiencies of operating two supply chains as we transition to 360 smart beds
Earnings per diluted share were $0.52, compared with $0.56 the prior year
Cash Flows and Balance Sheet Review
Cash provided by operations was $49 million for the first quarter
Invested $9 million in capital expenditures, compared with $13 million for the same period last year
Increased share repurchases 50% to $75 million for the first quarter, compared with $50 million last year
Return on invested capital (ROIC) was 14.1% for the trailing twelve-month period, well above our cost of capital
The company reiterates its outlook for 2018 earnings per diluted share of $1.70 to $2.00. The outlook assumes mid- to high-single digit sales growth for 2018. The 2018 outlook assumes an estimated effective income tax rate of 25%. The company anticipates 2018 capital expenditures to be approximately $50 million. The outlook contemplates a slow growth economy.
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 listen to the call, please dial 800-593-9959 (international participants dial 517-308-9340) and reference the passcode “Sleep.” To access the webcast, please visit the investor relations area of the Sleep Number website at http://www.sleepnumber.com/eng/aboutus/InvestorRelations.cfm. The webcast replay will remain available for approximately 60 days.
About Sleep Number Corporation
As the leader in sleep innovation, Sleep Number Corporation delivers the best quality sleep through effortless, adjustable comfort and biometric sleep tracking. Sleep Number’s proprietary SleepIQ® technology platform -- one of the most comprehensive databases of biometric consumer sleep data - is proving the connection between sleep and wellbeing. With breakthrough innovations such as the revolutionary Sleep Number 360® smart bed, Sleep Number is redefining the future of sleep and shaping the future of health and wellness. To experience better quality sleep, visit one of the over 550 Sleep Number® stores located in all 50 states or SleepNumber.com. For additional information, visit our newsroom and investor relations site.
The following information was filed by Sleep Number Corp (SNBR) on Wednesday, April 18, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Sleep Number Corp's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed, and by Sleep Number Corp.
Ticker: SNBR CIK: 827187 Form Type:10-Q Quarterly Report Accession Number: 0000827187-18-000020 Submitted to the SEC: Wed May 02 2018 6:08:46 PM EST Accepted by the SEC: Thu May 03 2018 Period: Saturday, March 31, 2018 Industry: Household Furniture