secwatch / observer
8-K filed November 7, 2023, 6:59 PM ET ticker SNBR CIK 0000827187
earnings confidence high sentiment negative materiality 0.85

Sleep Number Corp (SNBR): restructuring charge — Sleep Number Q3 net sales down 13%, loss $0.10; restructures with 500 job cuts, store closures

Sleep Number Corp

2023-Q3 EPS reported $0.44 revenue$1,457,964,000

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Sleep Number Corp amended credit facility of $825 million to $685 million with U.S. Bank National Association at increases the Applicable Margin by 25 to 75 basis points.

Instrument
credit facility
Principal
$825 million to $685 million
Counterparty
U.S. Bank National Association
Rate
increases the Applicable Margin by 25 to 75 basis points
Event
amendment
Exact text from the filing
and certain other financial institutions party thereto. The Tenth Amendment, among other things, (a) decreases the total aggregate commitment under the Credit Agreement from $825 million to $685 million, (b) decreases the $625 million revolving loan commitment to $485 million, (c) decreases the accordion from $400 million to $342.5 million, (d) increases the
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Earnings Releases SEC 8-K Item 2.02 confidence 0.95

Sleep Number Corp reported quarter ended September 30, 2023 results: revenue $473 million, EPS $0.10 loss per diluted share.

Period
quarter ended September 30, 2023
Revenue
$473 million
EPS
$0.10 loss per diluted share
Result
reported results
Exact text from the filing
on Form 8-K. --- EX-99.1 (EX-99.1) --- FOR IMMEDIATE RELEASE SLEEP NUMBER ANNOUNCES THIRD QUARTER 2023 RESULTS • Third quarter net sales declined 13% versus the prior year to $473 million; third quarter diluted loss per share of $0.10 • Initiated approximately $50 million of additional operating expense reduction actions for 2024 on top of an estimated $80 million
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Earnings Releases SEC 8-K Item 2.02 confidence 0.95

Sleep Number Corp reported full-year 2023 results: EPS loss of up to $0.70 per share. Guidance lowered.

Period
full-year 2023
EPS
loss of up to $0.70 per share
Guidance
lowered
Result
guidance update
Exact text from the filing
The company updated its full-year 2023 diluted EPS outlook to a loss of up to $0.70 per share.
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Sleep Number Corp amended Tenth Amendment with U.S. Bank National Association (effective 2023-11-02).

Action
amendment
Agreement
credit facility
Counterparty
U.S. Bank National Association
Effective
2023-11-02
Exact text from the filing
☐ ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT On November 2, 2023, Sleep Number Corporation, a Minnesota corporation (“Sleep Number”), entered into a Tenth Amendment (the “Tenth Amendment”) amending and supplementing the Amended and Restated Credit and Security Agreement, dated as of February 14, 2018 (as amended, supplemented or otherwise modified from time to time, including by the Ninth Amendment, the “Credit Agreement”), among U.S.
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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Sleep Number Corp announced a restructuring with charges of up to $20 million of one-time costs, with an estimated $10 million of the costs being recorded in the fourth quarter of 2023 affecting all areas of the organization, including in corporate and research and development functions (approximately 10% or 500 team members across all areas of the organization).

Type
restructuring
Charge
up to $20 million of one-time costs, with an estimated $10 million of the costs being recorded in the fourth quarter of 2023
Affected area
all areas of the organization, including in corporate and research and development functions
Headcount
approximately 10% or 500 team members across all areas of the organization
Exact text from the filing
On November 6, 2023, in light of the demand trajectory change in August, the Company initiated business restructuring actions which are expected to reduce 2024 operating expenses by approximately $50 million and accelerate gross margin initiatives, in addition to the approximate $80 million of operating expense reductions expected to be realized in 2023. These actions are broad-based and include a headcount reduction of approximately 10% or 500 team members across all areas of the organization, including in corporate and research and development functions. These actions also include a rationalization of the store portfolio with a planned closure of 40 to 50 stores by the end of 2024, a slower rate of new store openings and remodels, and a reduction of the Company's 2024 capital expenditures. Gross margin improvement actions include value engineering and cost optimization strategies, including driving additional efficiencies through the Company's manufacturing and home delivery network.
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Sleep Number Corp filing history →

Source: SEC EDGAR
accession 0000827187-23-000091
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