Sleep Number Stock Price, News & Analysis

Sleep Number (SNBR) has announced it will release its fiscal fourth quarter and full year 2024 financial results after market close on Wednesday, March 5, 2025. The company will hold a conference call at 5 p.m. EST to discuss the results with management. Investors can access the webcast through Sleep Number's investor relations website, and the replay will be available for approximately 60 days following the event.

Stadium Capital Management, the largest shareholder of Sleep Number (NASDAQ: SNBR) with 11.7% ownership, issued a letter to shareholders proposing changes to the company's Board of Directors and executive leadership.

Stadium Capital criticizes the current Board's governance and CEO hiring process, suggesting it is ineffective and slow. They propose appointing Patrick 'Pat' Hopf as Executive Chairman and Gary Fazio as Strategic Advisor. Hopf, a founding investor, has extensive experience with Sleep Number, while Fazio has a strong track record in the mattress industry, including leadership roles at Mattress Firm Group and Simmons Bedding.

Stadium Capital believes these appointments, along with other governance changes, will improve the Board's effectiveness, attract a high-caliber CEO, and ultimately enhance shareholder returns. They urge shareholders to support their proposed path forward.

Stadium Capital Management, Sleep Number's (NASDAQ: SNBR) largest shareholder with 11.7% ownership, has called for immediate boardroom changes, citing support from shareholders representing over 45% of outstanding shares. The activist investor is urging five long-tenured directors to step down, including Stephen Gulis, Michael Harrison, Shelly Ibach, Brenda Lauderback, and Barbara Matas.

Since Stadium Capital's November 25th letter, SNBR's stock has risen by more than 63%, adding approximately $175 million in market value. The firm opposes the current CEO search process and has nominated four new director candidates on December 2nd, 2024. Stadium Capital highlights SNBR's significant underperformance compared to competitor Tempur Sealy International, with SNBR showing -85% and -74% returns over 3-year and 5-year periods respectively.

Stadium Capital Management, Sleep Number's largest shareholder with an 11.7% stake, has nominated four director candidates for the company's Board of Directors for the 2025 Annual Meeting. The nominees include Patrick A. Hopf (former Sleep Number Chairman), Jeffrey T. Jackson, Jessica M. Prager, and Kevin Baker. This action follows Stadium Capital's expressed concerns about Sleep Number's financial performance, governance, and CEO search process. The company's shares appreciated 20% following Stadium Capital's recent letter highlighting potential value enhancement paths.

Sleep Number (SNBR) has responded to Stadium Capital Management's public letter to shareholders regarding CEO succession. The company highlighted its comprehensive CEO search process, led by the Management Development and Compensation Committee with support from Korn Ferry. Despite extensive engagement with Stadium, including adding two Stadium-recommended directors and multiple meetings, Stadium made an unusual demand for direct participation in the CEO succession process. The Board maintains its current approach is robust and best-in-class, featuring weekly committee meetings, independent oversight, and full Board involvement in the final decision. The company has already identified qualified candidates and remains open to shareholder input while prioritizing an effective succession.

Stadium Capital Management, Sleep Number's largest shareholder with an 11.7% stake, has issued a letter criticizing the company's board and leadership. The letter highlights significant shareholder value destruction, with SNBR's stock down 91% from its peak and underperforming competitor Tempur Sealy by 482% during CEO Shelly Ibach's tenure. Stadium Capital argues that recent governance changes, including Ibach's retirement announcement and board declassification plans, are insufficient. They express concerns about the CEO search process, claiming it lacks independence from Ibach. The firm proposes immediate board refreshment, including replacing several directors, and threatens to nominate new directors at the 2025 Annual Meeting if their concerns aren't addressed.

Sleep Number (SNBR) reported Q3 2024 results with net sales of $427 million, down 10% year-over-year. The company achieved a gross margin of 60.8%, up 340 basis points, and delivered adjusted EBITDA of $28 million, up 11% compared to prior year. Operating expenses decreased by $17 million for the quarter. Due to ongoing weakness in the bedding industry, Sleep Number updated its full-year 2024 adjusted EBITDA outlook to $115-125 million. The company also announced CEO Shelly Ibach's planned retirement no later than the 2025 Annual Meeting.

Sleep Number (SNBR) announced that CEO Shelly Ibach will retire no later than the 2025 Annual Meeting. During her 12-year tenure as CEO, Ibach transformed the company from a mattress retailer with $743 million in annual sales to a sleep wellness technology company with $1.9 billion in 2023 revenues. The Board has engaged an executive search firm to identify her successor, and Ibach will serve as Chair through the 2025 Annual Meeting and as a strategic advisor through 2025. The company also announced plans for Board changes, including the retirement of two long-serving directors by 2026 and corporate governance enhancements such as Board declassification.

Sleep Number (Nasdaq: SNBR) has announced that it will release its fiscal third quarter results for the period ending September 28, 2024, after the market closes on Wednesday, October 30, 2024. The company will host a conference call to discuss the results at 5 p.m. EDT (4 p.m. CDT; 2 p.m. PDT) on the same day.

Investors and interested parties can access the webcast of the conference call through the investor relations section of Sleep Number's website at https://ir.sleepnumber.com. The webcast replay will be available for approximately 60 days following the call.