--- schema_version: "secwatch.filing_event.v1" accession: "0000827187-23-000091" form_type: "8-K" ticker: "SNBR" cik: "0000827187" company_name: "Sleep Number Corp" filed_at: "2023-11-07T23:59:59+00:00" generated_at: "2026-06-08T18:24:45.084205+00:00" event_type: "earnings" sentiment: "negative" materiality_score: 0.85 calibrated_materiality_score: 0.85 confidence: "high" source: SEC EDGAR --- # Sleep Number Q3 net sales down 13%, loss $0.10; restructures with 500 job cuts, store closures ## Summary - Q3 net sales $473M (-13% YoY); diluted loss per share of $0.10 vs $0.22 EPS last year. - Gross margin improved 130 bps to 57.4%; operating expenses reduced $25M to $266M. - Restructuring: headcount reduction of ~10% (500 employees), 40-50 store closures by end of 2024. - Expects $50M additional 2024 OpEx reductions on top of ~$80M in 2023; up to $20M one-time costs ($10M in Q4). - Amended credit facility reduced total commitment to $685M; updated 2023 EPS outlook to loss up to $0.70 (incl. $0.35 restructuring charge). ## SEC filing metadata - accession: 0000827187-23-000091 - form_type: 8-K - ticker: SNBR - cik: 0000827187 - company_name: Sleep Number Corp - filed_at: 2023-11-07T23:59:59+00:00 - event_type: earnings - sentiment: negative - materiality_score: 0.85 - calibrated_materiality_score: 0.85 - confidence: high - sec_items: 1.01, 2.02, 2.03, 2.05, 9.01 - EDGAR index: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/0000827187-23-000091-index.htm - EDGAR primary document: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/snbr-20231102.htm ## Machine-readable alternates - HTML: https://secwatch.observer/filing/0000827187-23-000091 - JSON: https://secwatch.observer/filing/0000827187-23-000091.json - Plain text: https://secwatch.observer/filing/0000827187-23-000091.txt ## Key facts - Debt Financings 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 source text: 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 evidence_url: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/0000827187-23-000091-index.htm - Earnings Releases 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 source text: 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 evidence_url: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/0000827187-23-000091-index.htm - Earnings Releases 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 source text: The company updated its full-year 2023 diluted EPS outlook to a loss of up to $0.70 per share. evidence_url: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/0000827187-23-000091-index.htm - Material Agreements 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 source text: ☐ 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. evidence_url: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/0000827187-23-000091-index.htm - Restructurings & Charges 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 source text: 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. evidence_url: https://www.sec.gov/Archives/edgar/data/827187/000082718723000091/0000827187-23-000091-index.htm This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.