Sleep Number Corporation (SNBR) designs, manufactures, markets, retails, and services beds, bases, and bedding accessories under the Sleep Number name, explains David Fried, editor of The Buyback Letter.

The company also offers adjustable bases under the FlextFit name; and pillows and sheets, as well as other bedding products, including mattresses, box springs, and foundations under the Sleep Number name.

The company sells directly to consumers through retail, online, and phone, as well as through wholesale. It operates some 556 Sleep Number retail stores in 50 states.

It was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minn. and has a market cap of $1.047 billion.

Sleep Number widely advertises its beds that can adjust firmness according to the preferences of users, so most likely you have heard or seen an ad that touts the adjustable comfort and biometric sleep tracking,  Sleep Number’s proprietary SleepIQ technology platform -- a comprehensive database of biometric consumer sleep data.

Drawing a line between sleep and wellbeing, Sleep Number is banking on current and future consumer interest in health and wellness as it transitions to its new product Sleep Number 360 smart beds by mid-year. These beds use sleep science to help with identifying and warning of a heart attack, detecting sleep apnea, etc.

The company was named an Edison Awards Silver Winner for its Sleep Number 360 smart bed. The Edison Awards have honored the most innovative new products and services for over 30 years. Sleep Number also partnered with the NFL in January, becoming its 27th official partner (other partners are Marriott, Nike, Campbell’s Soup Co, PepsiCo, etc.).

Q1 had some rough results, with sales down 1% compared to 12% growth a year earlier, and earnings per share down 7%. However, 2017 year-end results were good, with record results including net sales up 10% with a 4% comparable sales gain, operating income up 20%, and earning per diluted share up 41%.

Despite missing analyst estimates for Q1, Sleep Number reiterated its full-year guidance, expecting mid- to high single-digit revenue growth, an effective tax rate of 25%, and earnings per share between $1.70 and $2. The outlook assumes a slow-growth economy. Meanwhile, the shares outstanding have been reduced by 6.2% in the last 12 months.

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