Sleep Number Corp (SNBR) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 28, 2019

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Third quarter net sales grew 14%, with a 10% comp gain and diluted EPS growth of 81%

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Year-to-date net sales increased 12%, operating income grew 46% and diluted EPS increased 63%

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Generated a 41% increase in year-to-date operating cash flows and a trailing twelve month ROIC of 18.4%

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Full-year outlook raised to a range of $2.45 to $2.75 per diluted share, $2.60 at the midpoint

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Net sales increased 14% to a record $475 million, including a 10% comparable sales gain

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Prior year’s reported results were impacted by one week of deliveries ($24 million of net sales and 23 cents of EPS) which shifted from the third to the fourth quarter; refer to the Reconciliation of Non-GAAP Financial Measures tables on page 10 of our fourth quarter 2018 earnings press release  

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Gross profit rate increased 200 basis points to 62.4% of net sales compared with 60.4% for the same period last year

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Operating income increased 55% to $39 million, or 8.2% of net sales, up 210 basis points versus the prior year’s third quarter

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Earnings per diluted share increased 81% to $0.94, compared with $0.52 for the prior year

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Generated $190 million in net cash from operating activities year to date, up 41% versus the same period last year

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Invested $47 million in capital expenditures year to date of the $60 million expected for 2019

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Returned $121 million to shareholders year to date through share repurchases, out of approximately $145 million expected for 2019

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Announced replenishment of $500 million share repurchase authorization effective the beginning of the fiscal fourth quarter

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Ended the third quarter with a leverage ratio of 2.6x EBITDAR; continue to operate with a targeted range of 2.5x to 3.0x EBITDAR with seasonal fluctuations expected

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Return on invested capital increased 470 basis points year over year to 18.4% for the trailing twelve month period