Sleep Number Corporation (NASDAQ: SNBR) reported Q1 EPS of $0.52, $0.04 worse than the analyst estimate of $0.56. Revenue for the quarter came in at $388.63 million versus the consensus estimate of $396.69 million.

First Quarter Overview

• Net sales were $389 million, down 1% versus 12% growth for the prior year
• Gross profit rate of 61.1% versus 62.6% for the same period last year, primarily due to inefficiencies of operating two supply chains as we transition to 360 smart beds
• Earnings per diluted share were $0.52, compared with $0.56 the prior year

Cash Flows and Balance Sheet Review

• Cash provided by operations was $49 million for the first quarter
• Invested $9 million in capital expenditures, compared with $13 million for the same period last year
• Increased share repurchases 50% to $75 million for the first quarter, compared with $50 million last year
• Return on invested capital (ROIC) was 14.1% for the trailing twelve-month period, well above our cost of capital

For earnings history and earnings-related data on Sleep Number Corporation (SNBR) click here.