Sleep Number

Sleep Number shares fell about 33.6% in premarket trading after a voluntary Chapter 11 filing and an agreement to sell to Sleep Country Canada, which will act as the stalking‑horse bidder. The sale will proceed as a court‑supervised process and is subject to higher bids, court approval and other conditions. Sleep Number expects debtor‑in‑possession financing of up to $260 million, including up to $65 million in new money, and stresses that stores will remain open and customer service and warranties will continue to be honored. The company is reviewing its store network, plans to continue paying wages and suppliers, and will keep assembly operations in the U.S. » More on de.investing.com

After reports that Sleep Number is preparing a possible bankruptcy filing and has approached lenders about financing structured as debtor-in-possession financing, the stock plunged about 61.5% in after-hours trading. The company is struggling with declining sales (2025 revenue: $1.4 billion, -16% year‑on‑year) and high debt; outstanding liabilities were around $606 million in early April. The stock had closed at $1.07 before the drop and has fallen nearly 90% over the past year. » More on de.investing.com

Sleep Number reported Q1 2026 earnings per share of -2.19 USD versus an expected -0.14 USD and revenue of 319 million USD compared with a projected 356.59 million USD. Gross margin fell 329 basis points to 57.9% and adjusted EBITDA dropped 73% to 5.8 million USD. The stock fell about 8.6% in premarket trading. The company says it saw a slight increase in demand in March, positive customer feedback for new products like ComfortMode and ongoing cost reductions, but views sustained macroeconomic pressure and consumer uncertainty as risks. » More on de.investing.com