Minneapolis-based mattress manufacturer Sleep Number recently announced its plans to close at least 40 stores by 2024. This decision came to light during the company’s third-quarter earnings report. Despite the closures, Sleep Number remains optimistic about its future and aims to focus on expanding its online presence and improving customer experience.
Sleep Number’s President and CEO, Shelly Ibach, explained the rationale behind the store closures, stating, “We are optimizing our real estate portfolio to ensure we have the right stores in the right locations to best serve our customers.” She added that the company is “committed to a seamless omni-channel experience” and will continue to invest in digital capabilities to enhance customer engagement.
The company’s third-quarter earnings report showed a net income of $40.2 million, or $1.79 per share, compared to $25.6 million, or $0.99 per share, in the same period last year. Net sales for the quarter increased by 27% to $568 million, up from $450 million in 2020. Sleep Number’s performance exceeded analysts’ expectations, and the company raised its full-year earnings guidance to a range of $6.50 to $6.75 per share.
In addition to closing stores, Sleep Number is also focusing on supply chain improvements and expanding its manufacturing capabilities. The company recently opened a new manufacturing facility in New Orleans, Louisiana, which is expected to create over 500 jobs and increase production capacity by 50%.
Despite the challenges posed by the ongoing global supply chain crisis, Sleep Number remains confident in its ability to navigate the situation. Ibach said, “We have a strong track record of managing through supply chain disruptions and are confident in our ability to mitigate the impacts on our business.”
Sleep Number’s decision to close stores and focus on digital growth is in line with the broader trend of retailers shifting their focus to online sales and customer experience improvements. This move will likely help the company stay competitive in the rapidly evolving retail landscape.
The original article appeared on BedTimes Magazine: https://bedtimesmagazine.com/?p=141698
