Alessandra Jimenez's questions to Sleep Number (SNBR) leadership • Q4 2024
Question
Alessandra Jimenez of Raymond James & Associates, Inc. asked about the portion of cost of goods sold subject to new tariffs, any planned pricing actions, and the top-line impact from store count rationalization in 2025.
Answer
CFO Francis Lee explained that the largest tariff exposure is from Mexico, which supplies about one-third of materials, and that mitigation plans are in place. CEO Shelly Ibach noted the company will be decisive with pricing but is mindful of the already pressured consumer. Francis Lee added that store closures created a couple of points of top-line pressure in 2024 and the company was pleased with the associated sales transfer rates.