Sleep Number endured a difficult third quarter as sales tumbled 19.6% and its net loss widened to $39.8 million, but President and CEO Linda Findley said a recent amendment to its credit agreement will allow the company to boost marketing efforts as it executes a turnaround plan.
Findley said the bank agreement, which has been extended into 2027, gives the company greater financial flexibility and additional time to implement the turnaround.
“It’s incredibly important because it gives us another year to get the business turned around and get everything working the way it needs to work,” she said following the release of third-quarter earnings. “With this new agreement, combined with meaningful fíxed cost reductions achieved in 2025, we will invest in growth in 2026.”
Findley, who joined Sleep Number in April, said marketing spending — always a key growth driver for the vertically integrated company — has been constrained the past two quarters as consumer demand weakened and fixed costs remained high.
“My learnings thus far make me incredibly optimistic about Sleep Number’s future and the ability to create significant shareholder value in the coming years,” she said. “The pace of our work, along with constraints imposed by our capital structure, has made the first
six months diffïcult. However, we have accomplished a lot and are optimistic that this work positions us to execute the turnaround in 2026.”
For the three months ended Sept. 27, sales totaled $342.9 million, down from
$426.7 million in the same period last year.
The net loss came to $39.8 million or $1.73 per share. In last year’s third quarter, the net loss was $3.14 million or 14 cents per share.
The company has closed 34 of its retail stores thus far in 2025 and had 611 locations remaining at the end of the third quarter.
For the first nine months of 2025, sales totaled $1.06 billion, down 18.5% from $1.31 billion in the first nine months of 2024.
The nine-month net loss totaled $73.4 million or $3.21 per share. In the same period last year, the net loss was $15.7 million or 69 cents per share.
In addition to a revamped marketing effort, Findley said the turnaround plan includes simplifying its product portfolio and expanding into new distribution channels – especially those the digital space.
The first of those potential new channels is a Nov. 11 test on the HSN shopping network, she said.
