What happened
Shares in technology-driven bed products maker and retailer Sleep Number (SNBR 5.38%) rose as much as 12% today, and are up 11% as of 11:30 a.m. EDT. The results follow similarly positive news from home furnishings retailer Ethan Allen earlier this week, which also drove its shares up double digits.
So what
Sleep Number said its net sales grew 12% in the third quarter ended Sept. 26. It also reported earnings per share grew 90% and operating income rose 78% compared to the previous-year period.
Image source: Sleep Number Corporation.
The designer, manufacturer, and retailer of smart beds said it expected full-year 2020 earnings of $4 per share, representing a 48% jump over 2019. Sleep Number president and CEO Shelly Ibach cited renewed consumer regard for physical wellbeing amid the pandemic for the strong results.
She said in the release the performance stems from "ongoing relevance of our life-changing 360 smart beds as consumers deepen their understanding of the importance of quality sleep to their overall health and wellness."
Now what
As consumers nested at home during restrictions implemented to stem the spread of the coronavirus, spending on home improvement items and furnishings accelerated.
Earlier this week, UBS analyst Atul Maheswari said "the mattress sector should see strong trends over the next few quarters on the back of wallet share gains and continued strength in housing."
The results from Sleep Number support that sentiment. The company also expressed confidence saying it would resume its share repurchase program in the fourth quarter.
