Sleep Number rallies after activist investor Stadium Capital boosts its stake
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Sleep Number Corporation (NASDAQ:SNBR) gained in early trading on Tuesday after Stadium Capital Management increased its active stake to 11.0%. The Connecticut-based hedge fund firm now holds about 2.46 million shares after holding 1.8 million shares at the end of Q3.
In its SEC filing, Stadium Capital noted Sleep Number's (SNBR) leadership and governance changes announced on October 30. However, while the changes were noted to represent forward progress, Stadium Capital said it remains concerned with Sleep Number's (SNBR) long-term underperformance and intends to engage with the company and other market participants to assess whether further change is necessary.
Last week, Sleep Number (SNBR) reported Q3 revenue fell 9.8% year-over-year and EPS was -$0.14 for the quarter. The company pointed to ongoing weakness in the bedding industry. Sleep Number (SNBR) expects 2024 full-year net sales to be down approximately 10%, consistent with year-to-date net sales performance.
Shares of Sleep Number (SNBR) were up 3.82% in premarket trading on Tuesday to $13.60 vs. the 52-week range of $8.13 to $20.75.
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