Sleep Number Faces Critical Test Amid Mounting Losses and Strategic Overhaul

Sleep Number Corporation is navigating one of the most challenging periods in its corporate history. Following a deeply disappointing quarterly earnings report, the smart-bed manufacturer is implementing an aggressive cost-cutting strategy while confronting a persistent decline in consumer demand.

The company’s second-quarter results for 2025 revealed a severe contraction in revenue, which plummeted by 19.7% to $328 million. This sharp decline was primarily driven by weaker sales performance and a reduced physical retail footprint. Consequently, Sleep Number posted a net loss of $25 million, or $1.09 per share, significantly underperforming against analyst forecasts.

Despite these troubling top-line numbers, one financial metric demonstrated notable resilience. The company’s gross margin held firm at 59.1%, indicating effective management of material costs and improved operational efficiency Read more...