What Happened?
Shares of bedding manufacturer and retailer Sleep Number (NASDAQ:SNBR) jumped 13.9% in the afternoon session after rebounding sharply from a sell-off a day earlier that was triggered by the announcement of its Chief Financial Officer's departure.
The stock had tumbled in the previous session after the company announced that CFO Francis Lee had stepped down, with an interim CFO appointed while a search for a permanent replacement was conducted. Sleep Number had emphasized that the leadership change was not related to any issues with the company's financials or operations. The rebound was supported by a broader rally across the consumer retail sector. This positive sentiment was fueled by fresh data showing an unexpected rebound in U.S. retail sales, which signaled that consumer spending remained resilient despite economic pressures. Investors also looked ahead to the company's second-quarter earnings report, which was scheduled for release on July 30.
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What Is The Market Telling Us
Sleep Number’s shares are extremely volatile and have had 88 moves greater than 5% over the last year. But moves this big are rare even for Sleep Number and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 6% as investors looked ahead to a busy week of corporate earnings reports. The mattress and bedding products company appeared to benefit from positive market sentiment. This upbeat mood comes as Wall Street braced for a significant number of earnings reports from major U.S. companies. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.
Sleep Number is down 39.3% since the beginning of the year, and at $9.08 per share, it is trading 55.5% below its 52-week high of $20.41 from December 2024. Investors who bought $1,000 worth of Sleep Number’s shares 5 years ago would now be looking at an investment worth $199.39.
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