Sleep Quantity’s Gross sales Decline in 2nd Quarter » BedTimes Journal
Bedding producer and retailer Sleep Quantity stated second-quarter gross sales tumbled 19.7% to $327.9 million and its internet loss widened as the corporate slashed advertising and marketing spending and different prices as a part of a turnaround effort led by its new CEO.
CEO Linda Findlay, who took the reins in April, stated the gross sales decline was not a shock and expressed confidence the corporate will rebound from its current monetary struggles.
“It’s clear Sleep Quantity has a robust model and differentiated merchandise,” Findlay stated. “We’re constructing on these core strengths with plans to return to worthwhile development by beginning to implement initiatives targeted on enhancing our product assortment, worth proposition and shopper engagement.”
She stated the corporate lowered working bills by $48 million through the second quarter to make sure it stayed in compliance with debt covenants. The reductions included “dramatically” decrease spending on advertising and marketing.
“The previous advertising and marketing technique was inefficient, and we would have liked to implement a significant reset,” she stated. “We’re rebuilding this program and are already seeing indicators that our new, extra environment friendly method is working. In parallel, we’re additionally working to optimize our product portfolio, worth and distribution, with the aim of specializing in the merchandise, value factors and advantages that matter most to our prospects.”
As a result of lowered working prices, the gross margin of 59.1% was the identical as final 12 months’s second quarter.
The quarterly internet loss, which included a $13 million discount within the worth of some deferred tax belongings, totaled $25 million, or $1.09 per share. In final 12 months’s second quarter, the loss totaled $5.05 million, or 22 cents per share.
For the six months main as much as June 28, gross sales totaled $721.2 million, down 17.9% from $878.9 million within the first half of 2024.
The six-month internet loss totaled $33.7 million, or $1.48 per share. That compares with a lack of $12.5 million or 56 cents per share in the identical interval final 12 months.
The corporate is projecting 2025 gross sales of roughly $1.45 billion, which might be about 14% decrease than 2024.
Sleep Quantity ended the quarter with 630 company-owned retail shops – 10 fewer than it had firstly of 2025 and down from 672 that had been open firstly of 2024.
Learn Purple’s 2nd quarter gross sales report.
