--- title: "Sleep Number | 10-Q: FY2027 Q1 Revenue Misses Estimate at USD 318.99 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286086608.md" datetime: "2026-05-12T11:08:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286086608.md) - [en](https://longbridge.com/en/news/286086608.md) - [zh-HK](https://longbridge.com/zh-HK/news/286086608.md) --- # Sleep Number | 10-Q: FY2027 Q1 Revenue Misses Estimate at USD 318.99 M Revenue: As of FY2027 Q1, the actual value is USD 318.99 M, missing the estimate of USD 352.07 M. EPS: As of FY2027 Q1, the actual value is USD -2.19, missing the estimate of USD -0.01. EBIT: As of FY2027 Q1, the actual value is USD -36.86 M. Sleep Number Corporation operates as a single reportable segment, with company-wide performance assessed based on consolidated financial information . #### Net Sales Net sales for the three months ended April 4, 2026, decreased by 19% to $319 million, down from $393 million in the prior-year period, primarily due to lower volume and reduced store count . Retail store sales accounted for $277.6 million (87.0% of net sales) for the three months ended April 4, 2026, compared to $344.4 million (87.6% of net sales) for the same period in the prior year . Online, phone, chat, and other sales were $41.4 million (13.0% of net sales) for the three months ended April 4, 2026, down from $48.8 million (12.4% of net sales) in the prior-year period . Total Retail comparable sales decreased by 16% for the three months ended April 4, 2026, compared to a 15% decrease in the prior-year period . The total net sales decrease of $74 million was comprised of a $54 million decrease in Total Retail comparable net sales, a $7 million decrease from online, phone, and chat, and a $13 million decrease from net store closings and other . Total Retail mattress unit sales decreased by 19% year-over-year, while the average revenue per mattress unit increased to $6,021 for the three months ended April 4, 2026, from $5,992 in the prior-year period . #### Gross Profit Gross profit for the three months ended April 4, 2026, was $184.6 million, a 23% decrease from $240.5 million in the prior-year period . The gross profit margin was 57.9% of net sales for the three months ended April 4, 2026, a decrease from 61.2% in the prior-year comparable period . This decrease was attributed to an unfavorable product mix (-1.4 percentage points), unfavorable cost variances and other non-mattress unit sales and warranty-related revenue deleveraging (-1.4 percentage points), and higher discounts on close-out models (-0.5 percentage points) . #### Operating Expenses Sales and marketing expenses were $160.8 million (50.4% of net sales) for the three months ended April 4, 2026, compared with $189.1 million (48.1% of net sales) for the same period one year ago, representing a 15% decrease in expenses, including a 32% lower media spend . General and administrative expenses totaled $33.6 million (10.5% of net sales) for the three months ended April 4, 2026, down from $39 million (9.8% of net sales) in the prior-year period . Research and development expenses decreased to $5.3 million for the three months ended April 4, 2026, from $11 million in the prior-year period . Restructuring costs significantly increased to $21.7 million for the three months ended April 4, 2026, from $0.1 million in the prior-year period, including $17.5 million in asset impairments . Total operating expenses were $221.5 million for the three months ended April 4, 2026, compared to $238.7 million in the prior-year period . #### Operating (Loss) Income Sleep Number Corporation reported an operating loss of - $36.9 million for the three months ended April 4, 2026, a decrease from an operating income of $1.9 million for the same period one year ago . #### Interest Expense, Net Interest expense, net, increased to $13.1 million for the three months ended April 4, 2026, from $11.1 million for the same period one year ago . #### Net Loss Net loss for the three months ended April 4, 2026, was - $50.3 million, compared with a net loss of - $8.6 million for the same period one year ago . Basic and diluted net loss per share was - $2.19 for the three months ended April 4, 2026, compared with - $0.38 for the same period one year ago . #### Adjusted EBITDA Adjusted EBITDA was $5.8 million for the three months ended April 4, 2026, down from $22.0 million for the same period one year ago . #### Adjusted Return on Invested Capital (Adjusted ROIC) Adjusted ROIC was -13.1% on a trailing twelve-month basis for the period ended April 4, 2026, compared with 7.2% for the comparable period one year ago . #### Cash Flow Net cash used in operating activities was - $7.8 million for the three months ended April 4, 2026, compared with - $2.6 million for the three months ended March 29, 2025 . Net cash used in investing activities was - $5.4 million for both periods . Net cash provided by financing activities was $13.0 million for the three months ended April 4, 2026, compared with $7.0 million for the same period one year ago . Free cash flow used was - $13.2 million for the three months ended April 4, 2026, compared with - $7.2 million used for the same period one year ago . #### Liquidity and Debt As of April 4, 2026, the company had $606 million of borrowings outstanding under its credit facility, including $178 million in outstanding term loans and $428 million outstanding under its revolving credit facility, along with $8 million in outstanding letters of credit . Availability under the revolving credit facility amounted to $39 million . The weighted-average interest rate on borrowings under the credit facility was 7.8% . #### Outlook and Strategy Sleep Number Corporation has initiated a turnaround strategy, “Sleep Number Shifts,” focusing on product simplification, modernizing marketing, and optimizing distribution channels to reposition the brand and reignite growth . These initiatives are supported by ongoing cost savings and operating efficiencies, including real estate optimization . The company anticipates it will not remain in compliance with financial covenants over the next twelve months, raising substantial doubt about its ability to continue as a going concern, and plans to address this through engagement with lenders, fulfilling obligations, and exploring additional capital options or strategic alternatives . The company expects approximately $2 million of additional restructuring costs to be incurred through the remainder of 2026 . ### Related Stocks - [SNBR.US](https://longbridge.com/en/quote/SNBR.US.md) ## Related News & Research - [15:27 ETAs Inflation and Rising Costs Continue, American Freight Delivers Everyday Low Prices for Budget-Conscious Shoppers](https://longbridge.com/en/news/286604265.md) - [Ring Energy to Participate in Water Tower Research Fireside Chat on May 20, 2026 | REI Stock News](https://longbridge.com/en/news/286757130.md) - [12:30 ETAn InventHelp 123Invent Client Develops New Tool for Mattress Assembly Workers (MHO-737)](https://longbridge.com/en/news/286445145.md) - [Autohome Inc. to Announce First Quarter 2026 Financial Results on May 28, 2026 | ATHM Stock News](https://longbridge.com/en/news/286390966.md) - [Here's How Much $100 Invested In EchoStar 5 Years Ago Would Be Worth Today](https://longbridge.com/en/news/286961297.md)