MINNEAPOLIS—On May 7, 2025, Francis K. Lee, the Executive Vice President and Chief Financial Officer of Sleep Number Corp (NASDAQ:SNBR), purchased 7,200 shares of the company’s common stock. The shares were acquired at an average price of approximately $7.12 per share, amounting to a total transaction value of $51,263. The purchase comes as the stock trades near $7.63, having fallen over 50% in the past year. According to InvestingPro analysis, the company currently shows signs of being undervalued, despite operating with significant debt of $935 million.
Following this acquisition, Lee’s direct ownership in Sleep Number stands at 92,970 shares. This total includes 72,455 shares obtained through Restricted Stock Unit awards that vest over time. With a market capitalization of $173 million, the company maintains impressive gross profit margins of 60%, though InvestingPro identifies 13 additional key factors affecting the company’s outlook.
In other recent news, Sleep Number Corp reported first-quarter 2025 financial results that fell short of analysts’ expectations, with both earnings per share (EPS) and revenue missing the mark. The company posted an EPS of -$0.38, significantly below the anticipated $0.36, and reported revenue of $393 million, which was also below the expected $461.1 million. This represents a 16% year-over-year decrease in revenue, highlighting ongoing challenges in the consumer market. Despite the disappointing top-line results, Sleep Number managed to improve its gross profit margin by 250 basis points to 61.2%, thanks to operational efficiencies. The company is implementing cost reduction strategies, including a 21% reduction in corporate management, to navigate the challenging consumer environment. Analysts from firms such as Raymond (NSE:RYMD) James and UBS have shown interest in the company’s strategic adjustments and marketing efficiency. Sleep Number’s management has not provided full guidance for upcoming quarters, citing macroeconomic uncertainties, but they are focused on maintaining gross profit margin improvements and adapting to market conditions.
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