MINNEAPOLIS – Lower volume and a reduced store count contributed to Sleep Number‘s 16% drop in first quarter sales, the company said.
The vertically integrated mattress brand reported net sales of $393 million for the quarter ended March 29, compared with net sales of $470 million in the same quarter last year. In addition to its quarterly earnings, Sleep Number announced changes to its executive team to create a “more streamlined decision-making process to deliver on efficiency and increased accountability.
Sleep Number reported a net loss of $8.6 million in the quarter, down $1.2 million compared with the same period in 2024 when the company lost $7.5 million. The company said its operating expenses were down 9% to $241 million compared with the prior-year first quarter due in part to lower marketing and selling expenses.
Linda Findley, the new president and CEO who joined the company last month, said Sleep Number has been working to reduce its second quarter operating expenses by 10%.
“We are laser-focused on delivering strong returns for shareholders and are taking a different approach to the Sleep Number business,” Findley said. “I see a way to run our business on a lower cost basis without compromising our topline. We are fundamentally changing how we operate. We implemented an organizational redesign, including changes to our leadership team, to simplify decision making and bring us closer to the customer. With that change, we reduced corporate management roles by 21%. In addition, we are reshaping key functions within the company, including marketing, research and development, to further drive efficiency.”
The reorganized leadership team reports to Findley for a more streamlined reporting structure, the company said.
Melissa Barra, formerly executive vice president, chief sales and services officer, has been named executive vice president and chief product and enterprise strategy officer, a new position. In her new role, Barra will oversee the company’s product portfolio, from development through distribution. She is responsible for streamlining research and development efforts and ensuring that products, partnerships and distribution continue to evolve in ways that meet the needs of today’s customers.
Chris Krusmark, former executive vice president and chief human resources officer, assumes the role of executive vice president, chief retail and people officer. He is responsible for managing the retail experience and real estate footprint for customers as well as the Sleep Number’s team. In this combined role, Krusmark is charged with strengthening the connection between customers and team members to increase sales.
Hitesh Patel, senior vice president and chief information officer, has expanded his role to consolidate Sleep Number’s corporate technology capabilities to reduce duplication previously distributed across multiple teams and functions.
Tanya Skogerboe has been named senior vice president and chief supply chain and transformation officer. She is responsible for leading Sleep Number’s supply chain operations. In addition, Skogerboe will continue to oversee the transformation of getting closer to consumers and optimizing operations.
“Since joining Sleep Number, I have been evaluating opportunities to create a more focused organization to bring us closer to our customer,” Findley said. “The changes are part of our efforts to strengthen company performance. Our new leadership team will enhance accountability and operational efficiency across our business. With clearer lines of reporting and less overlap of key functions, we expect to accelerate decision-making and improve our ability to respond quickly to changing industry and macroeconomic conditions.”
As part of the changes, the role of executive vice president and chief innovation officer held by Annie Bloomquist has been eliminated. Bloomquist will remain an advisor of the company until May 31.
The executive shuffle follows the recent announcement of Amber Minson’s appointment as chief marketing officer. The remainder of the executive leadership team, including Francis Lee, executive vice president and CFO, and Sam Hellfield, executive vice president and chief legal and risk officer, remain in their current positions.
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