Executives at Sleep Number Corp. were given a wake-up call Wednesday when shares in the company plummeted amid news that supply isn’t keeping pace with demand for the company’s mattresses.
The reason is supply shortages in a number of necessary items, including resins and computer chips.
According to the StarTribune, Shelly Ibach, the company’s chief executive, believes they can put this matter to bed in short order.
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"We have made substantial progress in addressing temporary component shortages and expect strong delivery volumes the balance of the year," Ibach said.
Sleep Number’s latest quarter showed a 39% increase over the same period in 2020, but their $484.3 million worth of earnings fell far short of the $511 million expectation.
Based on these numbers, Wedbush analyst Seth Basham reportedly told investors, “We believe the supplier challenges weighing on [Sleep Number] are much more severe than for other publicly traded mattress companies."
Shares in the company fell 12.9% despite a nearly 1% increase in broad-market indexes.
Sleep Number is still in pandemic rebound mode, as are most businesses, after a net loss of $12.6 million in the second quarter of 2020 when COVID-induced shutdowns were in full effect for non-essential businesses all across the country.
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