Sleep Number Sees Record Q3, Sales Up 20.6 Percent
The pandemic has been a boon to companies selling home goods and furniture. Minneapolis-based Sleep Number Corp., known for its Sleep Number adjustable beds, has been no exception.
On Wednesday, the company reported that its third quarter sales were up a robust 20.6 percent to $640.4 million. Net profit for the quarter ending on October 2 was up 4.7 percent to $53.7 million.
“Our record third quarter financial results exceeded our expectations and demonstrate the power of our advantaged business model and our teams’ stellar execution. We are driving sustainable demand and market share gains with our life-changing 360 smart beds by advancing proven initiatives,” said Shelly Ibach, Sleep Number’s president and CEO, in a statement.
For the first nine months of the year Sleep Number has posted $1.7 billion in sales, up 31.4 percent compared the same period a year ago. Those sales are on par with the company’s total annual sales for 2019.
The company is on course to eclipse $2 billion in sales for 2021.
The bulk of the company’s third quarter sales – 88.4 percent – came from its retail stores. Customers can’t test out how different beds feel on the internet. Online sales accounted for 11.6 percent of the sales volume for the latest quarter.
As of Oct. 2, the company now has a portfolio of 632 stores. During the third quarter it opened 18 new stores while closing 7 others. A year ago, the company had 596 stores.
According to the company’s statistics, the average Sleep Number retail store now has annual sales of $3.7 million.
“Given our unique competitive leadership at the intersection of wellbeing and technology, the worldwide shortage of semiconductors and other electronic components are a major challenge, elongating the timing of some customer deliveries,” said Ibach. “I could not be prouder of how our teams are aggressively pursuing solutions for these shortages to ensure we fulfill our mission of improving lives by individualizing sleep experiences.”