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Sleep Number Corporation (SNBR+1.00%) has submitted its 10-K filing for the fiscal year ended December 28, 2024.
The filing reports a net sales decrease of 11% to $1.7 billion for 2024, compared to $1.9 billion in 2023, attributed to ongoing weakness in the mattress industry and consumer spending scrutiny.
Operating income remained at $23 million for both 2024 and 2023, with the operating income rate increasing to 1.4% of net sales from 1.2% in the prior year.
Adjusted EBITDA was reported at $120 million for 2024, down from $127 million in 2023, due to a decline in net sales despite improvements in gross margin and cost reductions.
Gross profit rate increased by 1.9 percentage points to 59.6%, driven by product cost reductions and efficiency gains in logistics operations.
Net loss for 2024 was $20 million, compared to a net loss of $15 million in 2023, with a net loss per diluted share of $0.90, up from $0.68 in the previous year.
Cash provided by operating activities was $27 million, compared to cash used of $9 million in 2023, with free cash flow of $4 million compared to a negative $66 million in 2023.
The company ended 2024 with $547 million in borrowings under its revolving credit facility, compared to $540 million at the end of 2023, and was in compliance with all financial covenants.
The filing also details the company's restructuring efforts, with $18.1 million in restructuring costs for 2024 and an expectation of $5 million to $7 million in additional costs for 2025.
Sleep Number's strategic focus remains on reducing fixed expenses and improving margins to enhance financial resilience across market cycles.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sleep Number Corporation annual 10-K report dated March 7, 2025. To report an error, please email earnings@qz.com.