Sleep Number(US:SNBR)2025-04-30 20:06Financial Performance - Net sales for the first quarter were $393 million, a decrease of 16% compared to the first quarter of 2024[3] - The company reported a net loss of $8.6 million, compared to a net loss of $7.5 million in the same period last year[3] - Net loss for the three months ended March 29, 2025, was $8,646 thousand, compared to a net loss of $7,482 thousand for the same period in 2024, representing an increase in loss of approximately 15.5%[18] - Adjusted EBITDA for the quarter was $22 million, down 41% year-over-year, with an adjusted EBITDA margin decline of 230 basis points to 5.6%[9] - Adjusted EBITDA for the three months ended March 29, 2025, was $22,041 thousand, down from $37,404 thousand in the same period of 2024, indicating a decrease of approximately 41.0%[21] Cost Management - Gross profit margin improved to 61.2%, an increase of 250 basis points year-over-year, driven by reduced material input costs and efficiency gains[4] - Operating expenses were reduced by $23 million year-over-year, totaling $237 million before restructuring costs, primarily due to lower marketing and selling expenses[4] - The company anticipates annualized operating expense reductions of $80 to $100 million as part of its new organizational structure[6] Cash Flow - Cash used in operating activities was $2.6 million for the quarter, a decrease of $36 million compared to the previous year[9] - Free cash flow was a use of $7.2 million for the quarter, down $32 million year-over-year[9] - Free cash flow for the three months ended March 29, 2025, was $(7,225) thousand, compared to $24,437 thousand for the same period in 2024, marking a significant decline[23] Debt and Leverage - The leverage ratio at the end of the quarter was 4.46x EBITDAR, below the covenant maximum of 4.75x[9] - Total debt including operating lease liabilities decreased to $941,677 thousand as of March 29, 2025, from $955,693 thousand as of March 30, 2024[26] - The Net Leverage Ratio under the revolving credit facility increased to 4.5 to 1.0 for the trailing twelve months ended March 29, 2025, compared to 4.2 to 1.0 for the same period in 2024[26] Retail Performance - Retail comparable-store sales decreased by 15% for the three months ended March 29, 2025, compared to a decrease of 10% for the same period in 2024[20] - Average sales per store decreased to $2,495 thousand from $2,786 thousand year-over-year, reflecting a decline of approximately 10.4%[20] Operational Changes - The company opened 2 new stores and closed 5 stores during the three months ended March 29, 2025, resulting in a total of 637 stores at the end of the period[20] Product Performance - Average revenue per smart bed unit increased to $5,992 from $5,765 year-over-year, reflecting an increase of approximately 3.9%[20] Future Outlook - The company will not provide a 2025 financial outlook at this time due to recent leadership changes and macroeconomic conditions[7]