<\/p>\n
Sleep Number Announces Record Second Quarter 2021 Results<\/b><\/p>\n
Raises Full-Year Earnings Outlook<\/i><\/b><\/p>\n MINNEAPOLIS–(BUSINESS WIRE<\/a>)– \n\u201cOur differentiated sleep solutions have driven 18% average demand growth over the last twelve quarters including further acceleration in the second quarter,\u201d said Shelly Ibach, President and CEO. \u201cRobust consumer demand for Sleep Number 360\u00ae<\/sup> smart beds exceeded our expectations, while near-term supply constraints limited delivered net sales in June and July. We have made substantial progress in addressing temporary component shortages and expect strong delivery volumes the balance of the year. Sleep Number teams are driving higher than expected operational efficiencies, including operating profit margin expansion of 500 basis points versus the first half of 2019. We are raising our guidance for 2021 EPS to at least $7.25.\u201d\n<\/p>\n Financial Overview<\/b><\/p>\n Cash Flows and Liquidity Review<\/b><\/p>\n Financial Outlook Conference Call Information About Sleep Number Corporation \nOur award-winning 360\u00ae<\/sup> smart beds are informed by science. They learn from over one billion sleep sessions of highly-accurate, real-world sleep data \u2013 the cumulation of nearly 11 billion hours\u2019 worth – to automatically adjust to each sleeper and provide effortless comfort and proven quality sleep. Our 360 smart beds deliver individualized sleep health reports and insights, including a daily SleepIQ\u00ae<\/sup> score, and are helping to advance meaningful sleep health solutions by applying sleep science and research.\n<\/p>\n \nFor life-changing sleep, visit SleepNumber.com<\/a> or one of our approximately 620 Sleep Number\u00ae<\/sup> stores. More information is available on our newsroom<\/a> and investor relations<\/a> sites.\n<\/p>\n Forward-looking Statements 2021<\/b><\/p>\n<\/td>\n 2020<\/b><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n484,316\n<\/p>\n<\/td>\n 100.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n284,938\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 100.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n191,465\n<\/p>\n<\/td>\n 39.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n121,928\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 42.8<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n292,851\n<\/p>\n<\/td>\n 60.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n163,010\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 57.2<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n205,994\n<\/p>\n<\/td>\n 42.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n130,165\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 45.7<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n41,220\n<\/p>\n<\/td>\n 8.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n36,716\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 12.9<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n15,916\n<\/p>\n<\/td>\n 3.3<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n8,254\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2.9<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n263,130\n<\/p>\n<\/td>\n 54.3<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n175,135\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 61.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n29,721\n<\/p>\n<\/td>\n 6.1<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(12,125\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n (4.3<\/i><\/p>\n<\/td>\n %)<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,607\n<\/p>\n<\/td>\n 0.3<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3,940\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 1.4<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n28,114\n<\/p>\n<\/td>\n 5.8<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(16,065\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n (5.6<\/i><\/p>\n<\/td>\n %)<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n5,864\n<\/p>\n<\/td>\n 1.2<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(3,435\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n (1.2<\/i><\/p>\n<\/td>\n %)<\/i><\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n22,250\n<\/p>\n<\/td>\n 4.6<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(12,630\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n (4.4<\/i><\/p>\n<\/td>\n %)<\/i><\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n0.91\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(0.45\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.88\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(0.45\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n24,371\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n27,923\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n823\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n25,194\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n27,923\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 1<\/sup><\/p>\n<\/td>\n \nFor the three months ended June 27, 2020, potentially dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.\n<\/p>\n<\/td>\n<\/tr>\n 2021<\/b><\/p>\n<\/td>\n 2020<\/b><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n1,052,572\n<\/p>\n<\/td>\n 100.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n757,504\n<\/p>\n<\/td>\n 100.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n403,803\n<\/p>\n<\/td>\n 38.4<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n292,363\n<\/p>\n<\/td>\n 38.6<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n648,769\n<\/p>\n<\/td>\n 61.6<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n465,141\n<\/p>\n<\/td>\n 61.4<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n429,611\n<\/p>\n<\/td>\n 40.8<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n337,909\n<\/p>\n<\/td>\n 44.6<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n83,812\n<\/p>\n<\/td>\n 8.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n67,788\n<\/p>\n<\/td>\n 8.9<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n29,202\n<\/p>\n<\/td>\n 2.8<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n18,755\n<\/p>\n<\/td>\n 2.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n542,625\n<\/p>\n<\/td>\n 51.6<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n424,452\n<\/p>\n<\/td>\n 56.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n106,144\n<\/p>\n<\/td>\n 10.1<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n40,689\n<\/p>\n<\/td>\n 5.4<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n2,584\n<\/p>\n<\/td>\n 0.2<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n6,284\n<\/p>\n<\/td>\n 0.8<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n103,560\n<\/p>\n<\/td>\n 9.8<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n34,405\n<\/p>\n<\/td>\n 4.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n14,676\n<\/p>\n<\/td>\n 1.4<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n7,895\n<\/p>\n<\/td>\n 1.0<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n88,884\n<\/p>\n<\/td>\n 8.4<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n26,510\n<\/p>\n<\/td>\n 3.5<\/i><\/p>\n<\/td>\n %<\/i><\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n3.57\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.95\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n3.44\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.93\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n24,874\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n27,890\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n995\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n633\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n25,869\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n28,523\n<\/p>\n<\/td>\n 2021<\/b><\/p>\n<\/td>\n 2021<\/b><\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n2,173\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n4,243\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n23,205\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n31,871\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n88,577\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n81,362\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,578\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n28,900\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n20,839\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n42,564\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n43,489\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n186,997\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 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\n244,200\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n129,922\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n91,904\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n119,435\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n72,017\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n21,217\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n24,765\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n54,219\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n76,786\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n13,779\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n23,339\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n67,648\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n62,077\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n57,708\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n60,856\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n846,128\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n655,944\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n663\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n242\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n311,672\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n283,084\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n99,691\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n84,844\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n412,026\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n368,170\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,258,154\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,024,114\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n236\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n254\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(403,894\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(224,232\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n(403,658\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(223,978\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \n$\n<\/p>\n<\/td>\n \n854,496\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n800,136\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n\n
\nSleep Number Corporation (Nasdaq: SNBR) today reported results for the quarter ended July 3, 2021.\n<\/p>\n\n
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<\/b>The company raised its 2021 earnings per diluted share outlook to at least $7.25, which is at least 58% greater than 2020 full-year results excluding the impact of the 53rd week and nearly three times 2019 EPS. The outlook assumes an estimated effective income tax rate of 25% for the balance of the year. The company expects to generate more than $300 million of operating cash flows in 2021 with capital expenditures of approximately $75 million.\n<\/p>\n
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<\/b>Management will host its regularly scheduled conference call to discuss the company\u2019s results at 5 p.m. EDT (4 p.m. CDT; 2 p.m. PDT) today. To access the webcast, please visit the investor relations area of the Sleep Number website at https:\/\/ir.sleepnumber.com<\/a>. The webcast replay will remain available for approximately 60 days.\n<\/p>\n
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<\/b>Individuality is the foundation of Sleep Number. Our purpose driven company is comprised of over 5,000 passionate team members who are dedicated to our mission of improving lives by individualizing sleep experiences. We have improved over 13 million lives and are positively impacting society\u2019s wellbeing through higher-quality sleep.\n<\/p>\n
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<\/b>Statements used in this news release relating to future plans, events, financial results or performance, such as the company\u2019s expectations for generating certain operating cash flows in 2021, are forward-looking statements subject to certain risks and uncertainties including, among others, such factors as current and future general and industry economic trends and consumer confidence; risks inherent in outbreaks of pandemics or contagious disease, including the COVID-19 pandemic and related consequences such as supply shortages, labor disruptions, and recommendations and\/or mandates from federal, state and local authorities to close certain businesses or limit occupancy or operating hours; the effectiveness of our marketing messages; the efficiency of our advertising and promotional efforts; our ability to execute our Total Retail distribution strategy; our ability to achieve and maintain acceptable levels of product and service quality, and acceptable product return and warranty claims rates; our ability to continue to improve and expand our product line, and consumer acceptance of our products, product quality, innovation and brand image; industry competition, the emergence of additional competitive products and the adequacy of our intellectual-property rights to protect our products and brand from competitive or infringing activities; claims that our products, processes, advertising, or trademarks infringe the intellectual-property rights of others or do not comply with laws or regulations; availability of attractive and cost-effective consumer credit options; our lean manufacturing processes with minimal levels of inventory, which may leave us vulnerable to shortages in supply; our dependence on significant suppliers and third parties and our ability to maintain relationships with key suppliers or third parties, including several sole-source suppliers or providers of services; rising commodity costs and other inflationary pressures; risks inherent in global-sourcing activities, including tariffs, outbreaks of pandemics or contagious diseases, such as the COVID-19 pandemic, strikes and the potential for shortages in supply; risks of disruption in the operation of any of our main manufacturing facilities or assembly and distribution facilities; increasing government regulation; pending or unforeseen litigation and the potential for adverse publicity associated with litigation; the adequacy of our and third-party information systems to meet the evolving needs of our business and existing and evolving risks and regulatory standards applicable to data privacy and cybersecurity; the costs and potential disruptions to our business related to enhancing, patching, upgrading our information systems; the vulnerability of our and third-party information systems to attacks by hackers or other cyber threats that could compromise the security or accessibility of our systems, result in a data breach or disrupt our business; and our ability to attract, retain and motivate qualified management, executive and other key team members, including qualified retail sales professionals and managers. Additional information concerning these and other risks and uncertainties is contained in the company\u2019s filings with the Securities and Exchange Commission (SEC), including the Annual Report on Form 10-K, and other periodic reports filed with the SEC. The company has no obligation to publicly update or revise any of the forward-looking statements in this news release.\n<\/p>\n\n
\n SLEEP NUMBER CORPORATION<\/b><\/td>\n<\/tr>\n \n AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n Consolidated Statements of Operations<\/b><\/i><\/td>\n<\/tr>\n \n (unaudited \u2013 in thousands, except per share amounts)<\/b><\/td>\n<\/tr>\n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Three Months Ended<\/b><\/td>\n<\/tr>\n \n \n \n July 3,<\/b><\/td>\n \n % of<\/b><\/td>\n \n June 27,<\/b><\/td>\n \n % of<\/b><\/td>\n<\/tr>\n \n \n \n \n \n Net Sales<\/b><\/td>\n \n \n \n Net Sales<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net sales<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cost of sales<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating expenses:<\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Sales and marketing<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n General and administrative<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Research and development<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total operating expenses<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating income (loss)<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest expense, net<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income (loss) before income taxes<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income tax expense (benefit)<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net income (loss)<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income (loss) per share \u2013 basic<\/td>\n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income (loss) per share \u2013 diluted<\/td>\n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Reconciliation of weighted-average <\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n shares outstanding:<\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Basic weighted-average shares outstanding<\/td>\n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n Dilutive effect of stock-based awards 1<\/sup><\/td>\n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n Diluted weighted-average shares outstanding 1<\/sup><\/td>\n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n <\/tr>\n \n SLEEP NUMBER CORPORATION<\/b><\/td>\n<\/tr>\n \n AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n Consolidated Statements of Operations<\/b><\/i><\/td>\n<\/tr>\n \n (unaudited \u2013 in thousands, except per share amounts)<\/b><\/td>\n<\/tr>\n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Six Months Ended<\/b><\/td>\n<\/tr>\n \n \n \n July 3,<\/b><\/td>\n \n % of<\/b><\/td>\n \n June 27,<\/b><\/td>\n \n % of<\/b><\/td>\n<\/tr>\n \n \n \n \n \n Net Sales<\/b><\/td>\n \n \n \n Net Sales<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net sales<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Cost of sales<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating expenses:<\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Sales and marketing<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n General and administrative<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Research and development<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Total operating expenses<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating income<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest expense, net<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Income before income taxes<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Income tax expense<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n Net income<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income per share \u2013 basic<\/td>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income per share \u2013 diluted<\/td>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Reconciliation of weighted-average <\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n shares outstanding:<\/b><\/td>\n \n \n \n \n \n \n \n <\/tr>\n \n Basic weighted-average shares outstanding<\/td>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n Dilutive effect of stock-based awards<\/td>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n Diluted weighted-average shares outstanding<\/td>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n <\/tr>\n \n SLEEP NUMBER CORPORATION<\/b><\/td>\n<\/tr>\n \n AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n Consolidated Balance Sheets<\/b><\/i><\/td>\n<\/tr>\n \n (unaudited \u2013 in thousands, except per share amounts)<\/b><\/td>\n<\/tr>\n \n subject to reclassification<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n July 3,<\/b><\/td>\n \n January 2,<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n Assets<\/b><\/td>\n \n \n \n <\/tr>\n \n Current assets:<\/td>\n \n \n \n <\/tr>\n \n Cash and cash equivalents<\/td>\n \n \n \n \n \n \n \n \n \n Accounts receivable, net of allowances of $1,098 and $1,046, respectively<\/td>\n \n \n \n \n \n \n \n \n \n Inventories<\/td>\n \n \n \n \n \n \n \n \n \n Income taxes receivable<\/td>\n \n \n \n \n \n \n \n \n \n Prepaid expenses<\/td>\n \n \n \n \n \n \n \n \n \n Other current assets<\/td>\n \n \n \n \n \n \n \n \n \n Total current assets<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Non-current assets:<\/td>\n \n \n \n <\/tr>\n \n Property and equipment, net<\/td>\n \n \n \n \n \n \n \n \n \n Operating lease right-of-use assets<\/td>\n \n \n \n \n \n \n \n \n \n Goodwill and intangible assets, net<\/td>\n \n \n \n \n \n \n \n \n \n Other non-current assets<\/td>\n \n \n \n \n \n \n \n \n \n Total assets<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Liabilities and Shareholders\u2019 Deficit<\/b><\/td>\n \n \n \n <\/tr>\n \n Current liabilities:<\/td>\n \n \n \n <\/tr>\n \n Borrowings under revolving credit facility<\/td>\n \n \n \n \n \n \n \n \n \n Accounts payable<\/td>\n \n \n \n \n \n \n \n \n \n Customer prepayments<\/td>\n \n \n \n \n \n \n \n \n \n Accrued sales returns<\/td>\n \n \n \n \n \n \n \n \n \n Compensation and benefits<\/td>\n \n \n \n \n \n \n \n \n \n Taxes and withholding<\/td>\n \n \n \n \n \n \n \n \n \n Operating lease liabilities<\/td>\n \n \n \n \n \n \n \n \n \n Other current liabilities<\/td>\n \n \n \n \n \n \n \n \n \n Total current liabilities<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Non-current liabilities:<\/td>\n \n \n \n <\/tr>\n \n Deferred income taxes<\/td>\n \n \n \n \n \n \n \n \n \n Operating lease liabilities<\/td>\n \n \n \n \n \n \n \n \n \n Other non-current liabilities<\/td>\n \n \n \n \n \n \n \n \n \n Total non-current liabilities<\/td>\n \n \n \n \n \n \n \n \n \n Total liabilities<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Shareholders\u2019 deficit:<\/td>\n \n \n \n <\/tr>\n \n Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding<\/td>\n \n \n \n \n \n \n \n \n \n Common stock, $0.01 par value; 142,500 shares authorized, 23,622 and 25,390 shares issued and outstanding, respectively<\/td>\n \n \n \n \n \n \n \n \n \n Additional paid-in capital<\/td>\n \n \n \n \n \n \n \n \n \n Accumulated deficit<\/td>\n \n \n \n \n \n \n \n \n \n Total shareholders\u2019 deficit<\/td>\n \n \n \n \n \n \n \n \n \n Total liabilities and shareholders\u2019 deficit<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n <\/tr>\n \n SLEEP NUMBER CORPORATION<\/b><\/td>\n<\/tr>\n \n AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n Consolidated Statements of Cash Flows<\/b><\/i><\/td>\n<\/tr>\n \n (unaudited – in thousands)<\/b><\/td>\n<\/tr>\n \n subject to reclassification<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Six Months Ended<\/b><\/td>\n<\/tr>\n \n \n \n