Sleep Number Announces Second Quarter 2018 Results
Reported net sales increase of 11% to $316 million and EPS of $0.10, compared with a $0.02 loss for the prior year
Generated TTM ROIC of 14.3%, up 70 basis points versus the prior year
Reiterates full-year 2018 earnings outlook of $1.70 to $2.00 per diluted share
MINNEAPOLIS - (July 25, 2018) - Sleep Number Corporation (NASDAQ: SNBR) today reported second quarter 2018 results for the period ended June 30, 2018.
“We are excited to provide proven quality sleep to our customers with our Sleep Number 360® smart beds,” said Shelly Ibach, President and CEO of Sleep Number. “With our transition now complete, we expect performance acceleration from our new marketing campaign, differentiated retail experience and operating improvements.”
Second Quarter Overview
Net sales increased 11% to $316 million, with comparable sales up 9%; note: the prior year’s second quarter sales were impacted by an inventory shortage which shifted approximately $25 million to the third quarter
Operating income increased to $2 million, compared to a net operating loss of $3 million for the prior year’s second quarter. The current quarter included 230 basis points (bps) of gross margin pressure and
400 bps of operating expense leverage compared with the prior year
Earnings per diluted share were $0.10, including one-time tax planning benefit of $0.08 associated with the new Tax Cuts and Jobs Act
Capital Deployment Review
Generated $29 million in net cash from operating activities, invested $21 million in capital expenditures and returned $140 million to shareholders through share repurchases during the first six months of 2018
Ended the quarter with a $120 million liquidity cushion against our credit facility, compared with $138 million at the end of the prior year’s second quarter, excluding $3 million letters of credit in both years
Return on invested capital (ROIC) was 14.3% 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 for the second half of 2018 assumes mid-single digit sales growth and an estimated effective income tax rate of 25%. The company anticipates 2018 capital expenditures to be approximately $50 million.
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 560 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, July 25, 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.
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Ticker: SNBR CIK: 827187 Form Type:10-Q Quarterly Report Accession Number: 0000827187-18-000045 Submitted to the SEC: Fri Aug 03 2018 4:11:34 PM EST Accepted by the SEC: Fri Aug 03 2018 Period: Saturday, June 30, 2018 Industry: Household Furniture