MINNEAPOLIS – Sleep Number Corp. said third quarter net sales grew 12% to a record $531 million, with demand growth of 16%. Third quarter operating income grew 77.8%.
The company also provided a 2020 earnings outlook of approximately $4 per diluted share, a 48% increase vs. full-year 2019 earnings per diluted share of $2.70, on estimated net sales growth of 7% to 8%.
“For the third consecutive year, since transitioning to our smart beds, our Q3 results reflect double-digit demand growth,” said Shelly Ibach, president and CEO. “We again demonstrated the resilience of our vertical business model through our top and bottom-line performance and a trailing 12 months ROIC of nearly 21%.”
For the quarter ending Sept. 26, net sales increased to $531.2 million, including an 11% comparable sales gain. Online and phone sales were up 111% vs. the prior year and represented 14% of net sales.
Operating income increased 77.8% to $69.6 million, or 13.1% of net sales. Earnings per diluted share increased 90% to $1.79, compared with 94 cents per share for the prior year.
Sleep Number generated $287 million in net cash from operating activities for the first nine months of 2020, up 51% vs. last year, with year-to-date operating free cash flows of $259 million, up 81% over the prior year.
The company invested $28 million in year-to-date capital expenditures compared with $47 million for the prior-year period. It reported return on invested capital of 20.8% for the trailing 12-month period, up 240 basis points over the prior-year period.