Company takes measures to cut costs and adapt to changing market
- Sleep Number’s stock falls 30% after surprise quarterly loss
- Company saw abrupt change in consumer demand
- Sleep Number lowers guidance for the year and plans layoffs and store closures
- Cost-restructuring plan aims to reduce operating expenses by $50 million next year
- 2023 EPS outlook revised to a per-share loss of up to 70 cents
Shares of Sleep Number Corp. dropped 30% after the company reported a surprise quarterly loss and experienced a sudden change in consumer demand. In response, Sleep Number is implementing a cost-restructuring plan that includes layoffs and store closures, aiming to reduce operating expenses by $50 million next year. The company also revised its 2023 EPS outlook to a per-share loss of up to 70 cents. Sleep Number has appointed new board members and entered into a cooperation agreement with a shareholder to review capital use and investments. The stock has declined 38% this year.
Factuality Level: 7
Factuality Justification: The article provides information about Sleep Number Corp.’s financial performance, including its quarterly loss, predicted full-year loss, and cost-restructuring actions. It also mentions the agreement with a shareholder and the appointment of new board members. The information seems to be based on the company’s statements and public records. However, the article lacks in-depth analysis and context, and it does not provide perspectives from other sources or industry experts.
Noise Level: 3
Noise Justification: The article provides relevant information about Sleep Number Corp.’s financial performance and actions taken in response to challenges. It includes details about the quarterly loss, revenue drop, cost reduction plan, store closures, and changes in the board. However, the article lacks in-depth analysis, evidence, and actionable insights. It also contains some filler content and repetitive information.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Sleep Number Corp.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Sleep Number Corp., a mattress maker and retailer. The company reported a surprise quarterly loss and predicted a loss for the full year. It also announced cost-restructuring actions, including layoffs and store closures, in response to lower demand. While the financial performance is significant for the company, there is no mention of an extreme event or its impact.
Public Companies: Sleep Number Corp. (SNBR), S&P 500 index (SPX)
Key People: Shelly Ibach (Chief Executive), Stephen E. Macadam (Board Member), Hilary A. Schneider (Board Member), Michael J. Harrison (Independent Director)
Reported publicly:
www.marketwatch.com 
