Sleep Number(SNBR) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter gross profit rate improved to 59.9%, up 330 basis points year-over-year, with a full-year gross profit rate of 59.6%, up 190 basis points [7]. - Fourth quarter net sales were $377 million, down 12$1.68 billion [8]. - Fourth quarter adjusted EBITDA was $26 million, up 43$120 million, at the midpoint of the earnings outlook [7]. - The company reported a fourth quarter net loss of $5 million, an improvement from a net loss of$25 million in the same period last year, while the full-year net loss was $20 million compared to a net loss of$15 million the previous year [8]. - Net loss for the twelve months ended December 28, 2024, was $20,334 million, compared to a net loss of$15,287 million in 2023, representing a 33.3% increase in losses [22]. - Adjusted EBITDA for the trailing twelve months ended December 28, 2024, was $119,579 million, down from$126,676 million in 2023, a decrease of about 5.6% [25]. - Consolidated EBITDAR decreased from $240,477 to$226,684, a decline of approximately 5.7% [30]. - Adjusted ROIC for the trailing twelve months ended December 28, 2024, was 7.6%, slightly down from 7.8% in the previous year [33]. - Adjusted NOPAT for the trailing twelve months ended December 28, 2024, was $37,740, compared to$38,868, a decrease of about 2.9% [33]. Cost Management - Operating expenses for the fourth quarter were reduced by $28 million year-over-year, totaling$219 million, with a full-year reduction of $88 million [8]. - Free cash flow for the year was$4 million, an increase of $70 million compared to the prior year [8]. - Free cash flow for the trailing twelve months ended December 28, 2024, was$3,638 million, compared to a negative $66,084 million in 2023, indicating a significant improvement [27]. - Total current liabilities decreased from$936,071 million in 2023 to $908,012 million in 2024, a reduction of about 3$1,950 million in 2024, down from $2,539 million in 2023, a decrease of approximately 23.1$980,120 to $943,496, a reduction of approximately 3.7$433,154 to $389,508, a reduction of about 10.1$113,801 to $107,105, a decline of approximately 5.9$5,959 in 2024 from $5,541 in 2023, reflecting a growth of approximately 7.5$950,880 million in 2023 to $860,810 million in 2024, a decline of approximately 9.4$539,819 to $546,841, an increase of about 1.3$496,612 to $497,972, an increase of approximately 0.3% [33]. - The company opened 1 new store and closed 4 stores in the three months ended December 28, 2024, resulting in a total of 640 stores at the end of the period [24].