=Sleep Number (SNBR) reported earnings on Thur 25 July 2019 (a/h)

Sleep Number beats by $0.11, beats on revs; guides FY19 EPS in-line

Reports Q2 (Jun) earnings of $0.14 per share, $0.11 better thanthe S&P Capital IQ Consensus of $0.03; revenues rose 12.5% year/year to $355.96 mln vs the $336.3 mln S&P Capital IQ Consensus.

• Revs increase includes an 8% comparable sales gain and 5 percentage points of growth from new stores
• discrete tax items benefited current year second quarter EPS by four cents and the prior year by eight cents
• Gross profit rate increased 130 basis points to 61.0% of net sales compared with 59.7% for the same period last year

Co issues in-line guidancefor FY19, sees EPS of $2.35-2.75 vs. $2.45 S&P Capital IQ Consensus.

• The outlook for the second half of 2019 includes mid- to high-single digit net sales growth and a 25% effective income tax rate. The company anticipates 2019 full-year capital expenditures to be $50 million to $60 million.