Sleep Number (SNBR) 10-Q 6 Aug 24 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Jun. 29, 2024 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 29, 2024
Document Transition Report	false
Entity File Number	000-25121
Entity Registrant Name	SLEEP NUMBER CORPORATION
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1597886
Entity Address, Address Line One	1001 Third Avenue South
Entity Address, City or Town	Minneapolis,
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55404
City Area Code	763
Local Phone Number	551-7000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	SNBR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	22,355,000
Entity Central Index Key	0000827187
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Current assets:
Cash and cash equivalents	$ 2,020	$ 2,539
Accounts receivable, net of allowances of $1,098 and $1,437, respectively	20,272	26,859
Inventories	95,845	115,433
Prepaid expenses	21,322	16,660
Other current assets	37,925	44,637
Total current assets	177,384	206,128
Non-current assets:
Property and equipment, net	153,676	179,503
Operating lease right-of-use assets	373,518	395,411
Goodwill and intangible assets, net	66,523	66,634
Deferred income taxes	25,397	20,253
Other non-current assets	87,147	82,951
Total assets	883,645	950,880
Current liabilities:
Borrowings under revolving credit facility	540,200	539,500
Accounts payable	106,039	135,901
Customer prepayments	44,518	49,143
Accrued sales returns	20,531	22,402
Compensation and benefits	35,305	28,273
Taxes and withholding	16,563	17,134
Operating lease liabilities	80,914	81,760
Other current liabilities	56,500	61,958
Total current liabilities	900,570	936,071
Non-current liabilities:
Operating lease liabilities	327,810	351,394
Other non-current liabilities	102,229	105,343
Total liabilities	1,330,609	1,392,808
Shareholders’ deficit:
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value; 142,500 shares authorized, 22,355 and 22,235 shares issued and outstanding, respectively	224	222
Additional paid-in capital	24,211	16,716
Accumulated deficit	(471,399)	(458,866)
Total shareholders’ deficit	(446,964)	(441,928)
Total liabilities and shareholders’ deficit	$ 883,645	$ 950,880

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Current assets:
Allowances	$ 1,098	$ 1,437
Shareholders’ deficit:
Undesignated preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Undesignated preferred stock, shares issued (in shares)	0	0
Undesignated preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	142,500,000	142,500,000
Common stock, shares issued (in shares)	22,355,000	22,235,000
Common stock, shares outstanding (in shares)	22,355,000	22,235,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Income Statement [Abstract]
Net sales	$ 408,413	$ 458,789	$ 878,862	$ 985,316
Cost of sales	166,923	194,544	361,198	410,806
Gross profit	241,490	264,245	517,664	574,510
Operating expenses:
Sales and marketing	182,400	197,779	390,912	428,267
General and administrative	39,573	39,795	78,652	79,196
Research and development	11,578	15,445	24,019	29,888
Total operating expenses	235,370	253,019	506,002	537,351
Operating income	6,120	11,226	11,662	37,159
Interest expense, net	12,270	9,948	24,569	19,050
(Loss) income before income taxes	(6,150)	1,278	(12,907)	18,109
Income tax (benefit) expense	(1,099)	524	(374)	5,890
Net (loss) income	$ (5,051)	$ 754	$ (12,533)	$ 12,219
Basic net (loss) income per share:
Net (loss) income per share – basic (in dollars per share)	$ (0.22)	$ 0.03	$ (0.56)	$ 0.55
Weighted-average shares – basic (in shares)	22,614	22,460	22,560	22,378
Diluted net (loss) income per share:
Net (loss) income per share – diluted (in dollars per share)	$ (0.22)	$ 0.03	$ (0.56)	$ 0.54
Weighted-average shares – diluted (in shares)	22,614	22,502	22,560	22,543
Restructuring Costs and Asset Impairment Charges	$ 1,819	$ 0	$ 12,419	$ 0

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		22,014
Beginning balance at Dec. 31, 2022	$ (438,177)	$ 220	$ 5,182	$ (443,579)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	11,465			11,465
Exercise of common stock options (in shares)		17
Exercise of common stock options	389		389
Stock-based compensation (in shares)		271
Stock-based compensation	4,639	$ 3	4,636
Repurchases of common stock (in shares)		(118)
Repurchases of common stock	(3,363)	$ (1)	(3,362)
Ending balance (in shares) at Apr. 01, 2023		22,184
Ending balance at Apr. 01, 2023	(425,047)	$ 222	6,845	(432,114)
Beginning balance (in shares) at Dec. 31, 2022		22,014
Beginning balance at Dec. 31, 2022	(438,177)	$ 220	5,182	(443,579)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	12,219
Ending balance (in shares) at Jul. 01, 2023		22,214
Ending balance at Jul. 01, 2023	(419,141)	$ 222	11,997	(431,360)
Beginning balance (in shares) at Apr. 01, 2023		22,184
Beginning balance at Apr. 01, 2023	(425,047)	$ 222	6,845	(432,114)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	754			754
Exercise of common stock options (in shares)		3
Exercise of common stock options	39		39
Stock-based compensation (in shares)		33
Stock-based compensation	5,251	$ 0	5,251
Repurchases of common stock (in shares)		(6)
Repurchases of common stock	(138)	$ 0	(138)	0
Ending balance (in shares) at Jul. 01, 2023		22,214
Ending balance at Jul. 01, 2023	$ (419,141)	$ 222	11,997	(431,360)
Beginning balance (in shares) at Dec. 30, 2023	22,235	22,235
Beginning balance at Dec. 30, 2023	$ (441,928)	$ 222	16,716	(458,866)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(7,482)			(7,482)
Stock-based compensation (in shares)		134
Stock-based compensation	4,117	$ 1	4,116
Repurchases of common stock (in shares)		(43)
Repurchases of common stock	(570)		(570)
Ending balance (in shares) at Mar. 30, 2024		22,326
Ending balance at Mar. 30, 2024	$ (445,863)	$ 223	20,262	(466,348)
Beginning balance (in shares) at Dec. 30, 2023	22,235	22,235
Beginning balance at Dec. 30, 2023	$ (441,928)	$ 222	16,716	(458,866)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ (12,533)
Ending balance (in shares) at Jun. 29, 2024	22,355	22,355
Ending balance at Jun. 29, 2024	$ (446,964)	$ 224	24,211	(471,399)
Beginning balance (in shares) at Mar. 30, 2024		22,326
Beginning balance at Mar. 30, 2024	(445,863)	$ 223	20,262	(466,348)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(5,051)			(5,051)
Stock-based compensation (in shares)		32
Stock-based compensation	3,992	$ 1	3,991
Repurchases of common stock (in shares)		(3)
Repurchases of common stock	$ (42)		(42)
Ending balance (in shares) at Jun. 29, 2024	22,355	22,355
Ending balance at Jun. 29, 2024	$ (446,964)	$ 224	$ 24,211	$ (471,399)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Cash flows from operating activities:
Net (loss) income	$ (12,533)	$ 12,219
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	34,177	36,749
Stock-based compensation	8,109	9,890
Net loss on disposals and impairments of assets	2,500	181
Deferred income taxes	(5,144)	(8,272)
Changes in operating assets and liabilities:
Accounts receivable	6,587	1,903
Inventories	19,588	(7,412)
Income taxes	774	1,808
Prepaid expenses and other assets	(1,483)	(5,824)
Accounts payable	(18,464)	(10,244)
Customer prepayments	(4,625)	(14,683)
Accrued compensation and benefits	7,153	7,594
Other taxes and withholding	(1,345)	(2,074)
Other accruals and liabilities	(11,776)	(3,115)
Net cash provided by operating activities	23,518	18,720
Cash flows from investing activities:
Purchases of property and equipment	(14,075)	(29,899)
Issuance of note receivable	(2,942)	(435)
Net cash used in investing activities	(17,017)	(30,334)
Cash flows from financing activities:
Net (decrease) increase in short-term borrowings	(6,408)	14,693
Repurchases of common stock	(612)	(3,501)
Proceeds from issuance of common stock	0	428
Net cash (used in) provided by financing activities	(7,020)	11,620
Net (decrease) increase in cash and cash equivalents	(519)	6
Cash and cash equivalents, at beginning of period	2,539	1,792
Cash and cash equivalents, at end of period	$ 2,020	$ 1,798

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies Business & Basis of Presentation The Company prepared the condensed consolidated financial statements as of and for the three and six months ended June 29, 2024 of Sleep Number Corporation and its 100%-owned subsidiaries (Sleep Number or the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments, including the elimination of all significant intra-entity balances and transactions, necessary to present fairly its financial position as of June 29, 2024 and December 30, 2023 , and the consolidated results of operations and cash flows for the periods presented. The historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the most recent audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023 and other recent filings with the SEC. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the consolidated financial statements in future periods and could be material. The Company’s critical accounting policies consist of stock-based compensation, warranty liabilities and revenue recognition.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 29, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements At both June 29, 2024 and December 30, 2023 , the Company had $19 million of debt and equity securities that fund the deferred compensation plan and are classified in other non-current assets. The Company also had corresponding deferred compensation plan liabilities of $19 million at both June 29, 2024 and December 30, 2023 , which are included in other non-current liabilities. The majority of the debt and equity securities are Level 1 as they trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. Unrealized gains/ (losses) on the debt and equity securities offset those associated with the corresponding deferred compensation plan liabilities.

Inventories

Inventories	6 Months Ended
	Jun. 29, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): June 29, 2024 December 30, 2023 Raw materials $ 7,899 $ 9,092 Work in progress 94 92 Finished goods 87,852 106,249 $ 95,845 $ 115,433

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill and Indefinite-lived Intangible Assets Goodwill was $64 million at June 29, 2024 and December 30, 2023 . Indefinite-lived trade name/trademarks totaled $1.4 million at both June 29, 2024 and December 30, 2023 . Definite-lived Intangible Assets Patents were $2.0 million at both June 29, 2024 and December 30, 2023 . Accumulated amortization was $0.9 million at June 29, 2024 and $0.8 million at December 30, 2023 . Amortization expense for both the three months ended June 29, 2024 and July 1, 2023 , was $55 thousand , and for both the six months ended June 29, 2024 and July 1, 2023 was $0.1 million . Annual amortization for Patents for subsequent years are as follows (in thousands): 2024 (excluding the six months ended June 29, 2024) $ 111 2025 226 2026 222 2027 222 2028 155 2029 99 Thereafter 46 Total future amortization for definite-lived intangible assets $ 1,081

Credit Agreement

Credit Agreement	6 Months Ended
	Jun. 29, 2024
Debt Disclosure [Abstract]
Credit Agreement	Credit Agreement As of June 29, 2024 , the Company’s credit facility had a total commitment amount of $680 million . The credit facility is for general corporate purposes, to meet seasonal working capital requirements and to repurchase its stock. The Credit Agreement includes an accordion feature which allows the Company to increase the amount of the credit facility from $680 million to $1.0 billion , subject to lenders’ approval. The Credit Agreement provides the lenders with a collateral security interest in substantially all of the Company’s assets and those of its subsidiaries and requires the Company to comply with, among other things, a maximum net leverage ratio and a minimum interest coverage ratio. The maximum net leverage ratio permitted by the Credit Agreement is 5.50 to 1.00 for the quarterly period ended June 29, 2024 ; 5.00 to 1.00 for the quarterly reporting period ending September 28, 2024; 4.80 to 1.00 for the quarterly reporting period ending December 28, 2024; and 4.00 to 1.00 for each quarterly reporting period occurring thereafter. The minimum interest coverage ratio permitted by the Credit Agreement is 1.25 to 1.00 for the quarterly period ended June 29, 2024 ; 1.50 to 1.00 for the quarterly reporting periods ending September 28, 2024 and December 28, 2024; and 3.00 to 1.00 for each quarterly reporting period occurring thereafter. The carrying amount of the outstanding borrowings under the Credit Agreement approximates fair value because interest rates approximate the current rates available to the Company. Under the terms of the Credit Agreement, the Company pays a variable rate of interest and a commitment fee based on its leverage ratio. The Credit Agreement matures in December 2026 . The Company was in compliance with all financial covenants as of June 29, 2024 . The following table summarizes the Company’s borrowings under the credit facility ($ in thousands ): June 29, 2024 December 30, 2023 Outstanding borrowings $ 540,200 $ 539,500 Outstanding letters of credit $ 7,147 $ 7,147 Additional borrowing capacity $ 132,653 $ 138,353 Weighted-average interest rate 8.4% 8.5%

Leases

Leases	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Leases	Leases The Company leases its retail, office and manufacturing space under operating leases which, in addition to the minimum lease payments, may require payment of a proportionate share of the real estate taxes and certain building operating expenses. While the Company’s local market development approach generally results in long-term participation in given markets, the retail store leases generally provide for an initial lease term of five to 10 years . The Company’s office and manufacturing leases provide for an initial lease term of up to 15 years . In addition, the Company’s mall-based retail store leases may require payment of variable rent based on net sales in excess of certain thresholds. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at the Company’s sole discretion. Lease options are included in the lease term only if exercise is reasonably certain at lease commencement. The Company’s lease agreements do not contain any material residual value guarantees. The Company also leases vehicles and certain equipment under operating leases with an initial lease term of three to six years . The Company’s operating lease costs include facility, vehicle and equipment lease costs, but exclude variable lease costs. Operating lease costs are recognized on a straight-line basis over the lease term, after consideration of rent escalations and rent holidays. The lease term for purposes of the calculation begins on the earlier of the lease commencement date or the date the Company takes possession of the property. During lease renewal negotiations that extend beyond the original lease term, the Company estimates straight-line rent expense based on current market conditions. Variable lease costs are recorded when it is probable the cost has been incurred and the amount can be reasonably estimated. At June 29, 2024 , the Company’s finance right-of-use assets and lease liabilities were not significant. Lease costs were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Operating lease costs (1) $ 26,909 $ 28,083 $ 53,735 $ 56,372 Variable lease costs (2) $ 8 $ 129 $ (41) $ 182 ___________________________ (1) Includes short -term lease costs which are not significant. (2) Variable lease costs include adjustments to percentage rent. The maturities of operating lease liabilities as of June 29, 2024 , were as follows (1) (in thousands): 2024 (excluding the six months ended June 29, 2024) $ 53,107 2025 100,672 2026 88,780 2027 72,728 2028 60,841 2029 41,075 Thereafter 71,244 Total operating lease payments (2) 488,447 Less: Interest 79,723 Present value of operating lease liabilities $ 408,724 ___________________________ (1) F uture payments for real estate taxes and certain building operating expenses for which the Company is obligated are not included in the operating lease liabilities. T otal operating lease payments exclude $19 million of legally binding minimum lease payments for leases signed but not yet commenced. (2) Includes the current portion of $81 million for operating lease liabilities. Other information related to operating leases was as follows: June 29, 2024 December 30, 2023 Weighted-average remaining lease term (in years) 5.7 5.9 Weighted-average discount rate 6.6 % 6.5 % Six Months Ended (in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in present value of operating lease liabilities $ 54,300 $ 53,476 Right-of-use assets obtained in exchange for operating lease liabilities $ 16,313 $ 32,831

Repurchases of Common Stock

Repurchases of Common Stock	6 Months Ended
	Jun. 29, 2024
Repurchases Of Common Stock [Abstract]
Repurchases of Common Stock	Repurchases of Common Stock For the three months ended June 29, 2024 and July 1, 2023 , we repurchased $42 thousand and $138 thousand , respectively, of common stock in connection with the vesting of restricted stock grants. For the six months ended June 29, 2024 and July 1, 2023 , we repurchased $0.6 million and $3.5 million , respectively, of common stock in connection with the vesting of restricted stock grants. We made no purchases under the Board-approved stock purchase plan in either period. As of June 29, 2024 , the remaining authorization under the Board-approved $600 million share repurchase program was $348 million .

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 29, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Deferred contract assets and deferred contract liabilities are included in the condensed consolidated balance sheets as follows (in thousands): June 29, 2024 December 30, 2023 Deferred contract assets included in: Other current assets $ 29,771 $ 28,567 Other non-current assets 52,312 54,795 $ 82,083 $ 83,362 June 29, 2024 December 30, 2023 Deferred contract liabilities included in: Other current liabilities $ 37,720 $ 36,421 Other non-current liabilities 65,362 69,098 $ 103,082 $ 105,519 Deferred revenue and costs related to SleepIQ ® technology are currently recognized on a straight-line basis over the product's estimated life of 4.5 to 5.0 years because the Company’s inputs are generally expended evenly throughout the performance period. During both the three months ended June 29, 2024 and July 1, 2023 , the Company recognized revenue of $10 million , that was included in the deferred contract liability balances at the beginning of the respective periods. During both the six months ended June 29, 2024 and July 1, 2023 , the Company recognized revenue of $19 million , that was included in the deferred contract liability balances at the beginning of the respective periods. Revenue from goods and services transferred to customers at a point in time accounted for a pproximate ly 98% of revenues for both the three and six months ended June 29, 2024 and July 1, 2023 . Net sales were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Retail stores $ 358,584 $ 402,145 $ 773,339 $ 860,808 Online, phone, chat and other 49,829 56,644 105,523 124,508 Total Company $ 408,413 $ 458,789 $ 878,862 $ 985,316 Obligation for Sales Returns The activity in the sales returns liability account was as follows (in thousands): Six Months Ended June 29, 2024 July 1, 2023 Balance at beginning of year $ 22,402 $ 25,594 Additions that reduce net sales 46,664 57,849 Deductions from reserves (48,535) (57,967) Balance at end of period $ 20,531 $ 25,476

Stock-based Compensation Expens

Stock-based Compensation Expense	6 Months Ended
	Jun. 29, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation Expense	Stock-based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Stock awards (1) $ 3,294 $ 4,258 6,438 $ 8,113 Stock options 698 994 1,671 1,777 Total stock-based compensation expense (1) 3,992 5,252 8,109 9,890 Income tax benefit 809 1,417 1,719 2,670 Total stock-based compensation expense, net of tax $ 3,183 $ 3,835 $ 6,390 $ 7,220 ___________________________ (1) Changes in stock-based compensation expense include the cumulative impact of the change in the expected achievements of certain performance targets.

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan	6 Months Ended
	Jun. 29, 2024
Profit Sharing And 401(k) Plan [Abstract]
Profit Sharing and 401(k) Plan	Profit Sharing and 401(k) Plan Under the Company’s profit sharing and 401(k) plan, eligible employees may defer up to 50% of their compensation on a pre-tax basis, subject to Internal Revenue Service limitations. Each pay period, the Company makes a contribution equal to a percentage of the employee’s contribution. During the three months ended June 29, 2024 and July 1, 2023 , the Company’s contributions, net of forfeitures , were $1.2 million and $2.8 million , respectively and during the six months ended June 29, 2024 and July 1, 2023 , were $3.2 million and $5.2 million , respectively.

Net Income per Common Share

Net Income per Common Share	6 Months Ended
	Jun. 29, 2024
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share The components of basic and diluted net (loss) income per share were as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net (loss) income $ (5,051) $ 754 $ (12,533) $ 12,219 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 22,614 22,460 22,560 22,378 Dilutive effect of stock-based awards — 42 — 165 Diluted weighted-average shares outstanding 22,614 22,502 22,560 22,543 Net (loss) income per share – basic $ (0.22) $ 0.03 $ (0.56) $ 0.55 Net (loss) income per share – diluted $ (0.22) $ 0.03 $ (0.56) $ 0.54 For the three and six months ende d June 29, 2024 , otherwise dilutive stock-based awards have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share. Additional potential dilutive stock-based awards totaling 1.3 million for both the three months ended June 29, 2024 and July 1, 2023 , and 1.3 million and 1.2 million for the six months ended June 29, 2024 and July 1, 2023 , respectively, have been excluded from the diluted net (loss)/income per share calculations because these stock-based awards were anti-dilutive.

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 29, 2024
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs In the fourth quarter of 2023, the Company initiated cost reduction actions to reduce operating expenses and accelerate gross margin initiatives, and recognized $15.7 million of restructuring costs in that quarter. In addition to the costs incurred in 2023, the Company incurred an additional $1.8 million and $12.4 million of restructuring costs during the three and six months ended June 29, 2024, respectively. Charges incurred related to this initiative were comprised of contract termination costs, severance and employee-related benefits, professional fees and other, and asset impairment charges and are included in the restructuring costs line in the Company’s consolidated statement of operations. The Company expects an additional $1 million to $2 million of restructuring costs to be incurred through the remainder of 2024. During the three and six months ended June 29, 2024 , the Company recognized $1.8 million and $12.4 million of restructuring costs, respectively, as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 June 29, 2024 Cash restructuring costs: Contract termination costs (1) $ (230) $ 4,183 Severance and employee-related benefits 401 1,242 Professional fees and other 1,648 4,494 Total cash restructuring costs 1,819 9,919 Non-cash restructuring costs: Asset impairments (2) — 2,500 Total restructuring costs $ 1,819 $ 12,419 ____________________ (1) Primarily comprised of lease termination costs. The three months ended June 29, 2024 include a change in estimate. (2) Primarily comprised of impairments of property and equipment. The following table provides the activity in the Company’s restructuring related liabilities, which are included within accounts payable, compensation and benefits and other current liabilities on the consolidated balance sheet (in thousands): Six Months Ended June 29, 2024 Balance at the beginning of year $ 8,720 Expenses 9,919 Cash payments (16,916) Balance at the end of the period $ 1,723 Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative $28.1 million of restructuring costs, as follows (in thousands): Cumulative June 29, 2024 Cash restructuring costs: Contract termination costs (1) $ 11,593 Severance and employee-related benefits 6,208 Professional fees and other 5,604 Total cash restructuring costs 23,405 Non-cash restructuring costs: Asset impairments (2) 4,742 Total restructuring costs $ 28,147 ____________________ (1) Primarily comprised of lease termination costs. (2) Includes impairments of both lease right-of-use assets and property and equipment.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 29, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended June 29, 2024 July 1, 2023 Balance at beginning of period $ 8,503 $ 8,997 Additions charged to costs and expenses for current-year sales 7,675 8,194 Deductions from reserves (8,048) (8,315) Changes in liability for pre-existing warranties during the current year, including expirations (171) 111 Balance at end of period $ 7,959 $ 8,987 Legal Proceedings The Company is involved from time to time in various legal proceedings arising in the ordinary course of its business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with U.S. generally accepted accounting principles, the Company records a liability in its consolidated financial statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. If a material loss is reasonably possible but not known or probable, and may be reasonably estimated, the estimated loss or range of loss is disclosed. With respect to currently pending legal proceedings, the Company has not established an estimated range of reasonably possible material losses either because it believes that is has valid defenses to claims asserted against it, the proceeding has not advanced to a stage of discovery that would enable it to establish an estimate, or the potential loss is not material. The Company currently does not expect the outcome of pending legal proceedings to have a material effect on its consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one or more claims asserted against the Company could adversely impact its consolidated results of operations, financial position or cash flows. The Company expenses legal costs as incurred. Purported Class Action Complaint On December 15, 2023, a former Field Services team member filed a purported class action Complaint in the Superior Court of California, County of Santa Clara, alleging violations of California’s meal and rest break law and additional wage and hour derivative claims under the California Labor Code. While the representative plaintiff was in the Field Services workforce, the Complaint does not limit the purported plaintiff class to that group, but rather extends to all non-exempt Sleep Number employees in the state. The plaintiff alleges that Sleep Number failed to provide compliant meal or rest breaks, failed to pay wages owed due to alleged off the clock work, failed to pay overtime, minimum wage and wages due at termination, thus resulting in inaccurate wage statements, all in violation of California law. The Complaint seeks damages in the form of unpaid regular and premium wages, statutory penalties, pre-judgment and post-judgment interest, plaintiffs’ attorneys’ fees and costs. On February 22, 2024, the plaintiff filed a related lawsuit in the same county alleging violations of a broad range of California Labor Code wage and hour violations under the state’s Private Attorney General Act (PAGA), including the same meal and rest break, and wage and hour, violations as appear in the purported class action. Sleep Number has a pending motion to compel arbitration which includes a request to enforce the class action waiver that the former Field Services team member signed when they agreed to arbitrate any employment disputes. The Court stayed the PAGA case pending resolution of the motion to compel arbitration in the purported class action case. Shareholder Class Action Complaints On December 14, 2021, purported Sleep Number shareholder, Steamfitters Local 449 Pension & Retirement Security Funds (Steamfitters), filed a putative class action complaint in the United States District Court for the District of Minnesota (the District of Minnesota) on behalf of all purchasers of Sleep Number common stock between February 18, 2021 and July 20, 2021, inclusive, against Sleep Number, Shelly Ibach and David Callen, the Company’s former Executive Vice President and Chief Financial Officer. Steamfitters alleges material misstatements and omissions in certain of Sleep Number’s public disclosures during the purported class period, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the Exchange Act). The complaint seeks, among other things, unspecified monetary damages, reasonable costs and expenses and equitable/injunctive or other relief as deemed appropriate by the District of Minnesota. On February 14, 2022, a second purported Sleep Number shareholder, Ricardo Dario Schammas, moved for appointment as lead plaintiff in the action. On March 24, 2022, the District of Minnesota heard argument on Schammas’s motion, and subsequently appointed Steamfitters and Schammas as Co-Lead Plaintiffs (together, Co-Lead Plaintiffs). On July 19, 2022, Co-Lead Plaintiffs filed a consolidated amended complaint, which, like the predecessor complaint, asserts claims against Sleep Number, Shelly Ibach, and David Callen under Sections 10(b) and 20(a) of the Exchange Act. Co- Lead Plaintiffs purport to assert these claims on behalf of all purchasers of Sleep Number common stock between February 18, 2021 and July 20, 2021. On September 19, 2022, Defendants moved to dismiss the consolidated amended complaint, which motion was heard by the Court on January 17, 2023. On July 10, 2023, the Court issued an order dismissing the Plaintiffs’ consolidated amended complaint with prejudice. Shareholder Derivative Complaint On May 12, 2022, Gwendolyn Calla Moore, as the appointed representative of purported Sleep Number shareholder Matthew Gelb, filed a derivative action (the Derivative Action) in the District of Minnesota against Jean-Michel Valette, Shelly Ibach, Barbara Matas, Brenda Lauderback, Daniel Alegre, Deborah Kilpatrick, Julie Howard, Kathleen Nedorostek, Michael Harrison, Stephen Gulis, Jr., David Callen, and Kevin Brown. Moore purports to assert claims on behalf of Sleep Number for breaches of fiduciary duty, waste, and contribution under Sections 10(b) and 21(d) of the Exchange Act. Moore’s allegations generally mirror those asserted in the securities complaint described above. The Moore complaint seeks damages in an unspecified amount, disgorgement, interest, and costs and expenses, including attorneys’ and experts’ fees. On September 13, 2022, the District of Minnesota entered a joint stipulation staying all proceedings in the Derivative Action pending the outcome of any motion to dismiss the Steamfitters consolidated amended complaint. On July 10, 2023, the District of Minnesota in the Steamfitters case dismissed the consolidated amended complaint with prejudice, as noted above. The Plaintiff in the Derivative Action subsequently moved the Court to voluntarily dismiss its the Complaint and on January 22, 2024, the District of Minnesota dismissed the Derivative Action without prejudice. Stockholder Demand On March 25, 2022, Sleep Number received a shareholder litigation demand (the “Demand”), requesting that the Board investigate the allegations in the Steamfitters complaint and pursue claims on Sleep Number’s behalf based on those allegations. On May 12, 2022, the Board established a special litigation committee to investigate the demand. On October 5 and October 12, 2022, Sleep Number received two additional shareholder litigation demands, which adopted and incorporated the allegations and requests in the Demand. Both of these additional litigation demands were referred to the special litigation committee. Subsequently, the special litigation committee determined that it would not be in the best interests of the Company and its shareholders to take the actions requested in the demands a nd, thus, rejected the demands in their entirety.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 29, 2024	Mar. 30, 2024	Jul. 01, 2023	Apr. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pay vs Performance Disclosure
Net (loss) income	$ (5,051)	$ (7,482)	$ 754	$ 11,465	$ (12,533)	$ 12,219

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 29, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Business and Summary of Signi_2

Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Business & Basis of Presentation	Business & Basis of Presentation The Company prepared the condensed consolidated financial statements as of and for the three and six months ended June 29, 2024 of Sleep Number Corporation and its 100%-owned subsidiaries (Sleep Number or the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments, including the elimination of all significant intra-entity balances and transactions, necessary to present fairly its financial position as of June 29, 2024 and December 30, 2023 , and the consolidated results of operations and cash flows for the periods presented. The historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the most recent audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023 and other recent filings with the SEC.
Use of Estimates	The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the consolidated financial statements in future periods and could be material. The Company’s critical accounting policies consist of stock-based compensation, warranty liabilities and revenue recognition.
Leases	The Company leases its retail, office and manufacturing space under operating leases which, in addition to the minimum lease payments, may require payment of a proportionate share of the real estate taxes and certain building operating expenses. While the Company’s local market development approach generally results in long-term participation in given markets, the retail store leases generally provide for an initial lease term of five to 10 years . The Company’s office and manufacturing leases provide for an initial lease term of up to 15 years . In addition, the Company’s mall-based retail store leases may require payment of variable rent based on net sales in excess of certain thresholds. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at the Company’s sole discretion. Lease options are included in the lease term only if exercise is reasonably certain at lease commencement. The Company’s lease agreements do not contain any material residual value guarantees. The Company also leases vehicles and certain equipment under operating leases with an initial lease term of three to six years . The Company’s operating lease costs include facility, vehicle and equipment lease costs, but exclude variable lease costs. Operating lease costs are recognized on a straight-line basis over the lease term, after consideration of rent escalations and rent holidays. The lease term for purposes of the calculation begins on the earlier of the lease commencement date or the date the Company takes possession of the property. During lease renewal negotiations that extend beyond the original lease term, the Company estimates straight-line rent expense based on current market conditions. Variable lease costs are recorded when it is probable the cost has been incurred and the amount can be reasonably estimated.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 29, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following (in thousands): June 29, 2024 December 30, 2023 Raw materials $ 7,899 $ 9,092 Work in progress 94 92 Finished goods 87,852 106,249 $ 95,845 $ 115,433

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Annual Amortization of Definite-Lived Tangible Assets	Annual amortization for Patents for subsequent years are as follows (in thousands): 2024 (excluding the six months ended June 29, 2024) $ 111 2025 226 2026 222 2027 222 2028 155 2029 99 Thereafter 46 Total future amortization for definite-lived intangible assets $ 1,081

Credit Agreement (Tables)

Credit Agreement (Tables)	6 Months Ended
	Jun. 29, 2024
Debt Disclosure [Abstract]
Schedule of Borrowings Under Credit Facility	The following table summarizes the Company’s borrowings under the credit facility ($ in thousands ): June 29, 2024 December 30, 2023 Outstanding borrowings $ 540,200 $ 539,500 Outstanding letters of credit $ 7,147 $ 7,147 Additional borrowing capacity $ 132,653 $ 138,353 Weighted-average interest rate 8.4% 8.5%

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Schedule of Operating Lease Costs	Lease costs were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Operating lease costs (1) $ 26,909 $ 28,083 $ 53,735 $ 56,372 Variable lease costs (2) $ 8 $ 129 $ (41) $ 182 ___________________________ (1) Includes short -term lease costs which are not significant. (2)
Schedule of Maturities of Operating Lease Liabilities	The maturities of operating lease liabilities as of June 29, 2024 , were as follows (1) (in thousands): 2024 (excluding the six months ended June 29, 2024) $ 53,107 2025 100,672 2026 88,780 2027 72,728 2028 60,841 2029 41,075 Thereafter 71,244 Total operating lease payments (2) 488,447 Less: Interest 79,723 Present value of operating lease liabilities $ 408,724 ___________________________ (1) F uture payments for real estate taxes and certain building operating expenses for which the Company is obligated are not included in the operating lease liabilities. T otal operating lease payments exclude $19 million of legally binding minimum lease payments for leases signed but not yet commenced. (2) Includes the current portion of $81 million for operating lease liabilities.
Schedule of Other Information Related Operating Leases	Other information related to operating leases was as follows: June 29, 2024 December 30, 2023 Weighted-average remaining lease term (in years) 5.7 5.9 Weighted-average discount rate 6.6 % 6.5 % Six Months Ended (in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in present value of operating lease liabilities $ 54,300 $ 53,476 Right-of-use assets obtained in exchange for operating lease liabilities $ 16,313 $ 32,831

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 29, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Deferred Contract Liabilities and Deferred Contract Assets	Deferred contract assets and deferred contract liabilities are included in the condensed consolidated balance sheets as follows (in thousands): June 29, 2024 December 30, 2023 Deferred contract assets included in: Other current assets $ 29,771 $ 28,567 Other non-current assets 52,312 54,795 $ 82,083 $ 83,362 June 29, 2024 December 30, 2023 Deferred contract liabilities included in: Other current liabilities $ 37,720 $ 36,421 Other non-current liabilities 65,362 69,098 $ 103,082 $ 105,519
Schedule of Disaggregation of Revenue	Net sales were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Retail stores $ 358,584 $ 402,145 $ 773,339 $ 860,808 Online, phone, chat and other 49,829 56,644 105,523 124,508 Total Company $ 408,413 $ 458,789 $ 878,862 $ 985,316
Schedule of Sales Return Liability	The activity in the sales returns liability account was as follows (in thousands): Six Months Ended June 29, 2024 July 1, 2023 Balance at beginning of year $ 22,402 $ 25,594 Additions that reduce net sales 46,664 57,849 Deductions from reserves (48,535) (57,967) Balance at end of period $ 20,531 $ 25,476

Stock-based Compensation Expe_2

Stock-based Compensation Expense (Tables)	6 Months Ended
	Jun. 29, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Total stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Stock awards (1) $ 3,294 $ 4,258 6,438 $ 8,113 Stock options 698 994 1,671 1,777 Total stock-based compensation expense (1) 3,992 5,252 8,109 9,890 Income tax benefit 809 1,417 1,719 2,670 Total stock-based compensation expense, net of tax $ 3,183 $ 3,835 $ 6,390 $ 7,220 ___________________________ (1) Changes in stock-based compensation expense include the cumulative impact of the change in the expected achievements of certain performance targets.

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	6 Months Ended
	Jun. 29, 2024
Earnings Per Share [Abstract]
Schedule of Components of Basic and Diluted Net (Loss) Income per Share	The components of basic and diluted net (loss) income per share were as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net (loss) income $ (5,051) $ 754 $ (12,533) $ 12,219 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 22,614 22,460 22,560 22,378 Dilutive effect of stock-based awards — 42 — 165 Diluted weighted-average shares outstanding 22,614 22,502 22,560 22,543 Net (loss) income per share – basic $ (0.22) $ 0.03 $ (0.56) $ 0.55 Net (loss) income per share – diluted $ (0.22) $ 0.03 $ (0.56) $ 0.54

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jun. 29, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring and Related Costs	During the three and six months ended June 29, 2024 , the Company recognized $1.8 million and $12.4 million of restructuring costs, respectively, as follows (in thousands): Three Months Ended Six Months Ended June 29, 2024 June 29, 2024 Cash restructuring costs: Contract termination costs (1) $ (230) $ 4,183 Severance and employee-related benefits 401 1,242 Professional fees and other 1,648 4,494 Total cash restructuring costs 1,819 9,919 Non-cash restructuring costs: Asset impairments (2) — 2,500 Total restructuring costs $ 1,819 $ 12,419 ____________________ (1) Primarily comprised of lease termination costs. The three months ended June 29, 2024 include a change in estimate. (2) Primarily comprised of impairments of property and equipment. Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative $28.1 million of restructuring costs, as follows (in thousands): Cumulative June 29, 2024 Cash restructuring costs: Contract termination costs (1) $ 11,593 Severance and employee-related benefits 6,208 Professional fees and other 5,604 Total cash restructuring costs 23,405 Non-cash restructuring costs: Asset impairments (2) 4,742 Total restructuring costs $ 28,147 ____________________ (1) Primarily comprised of lease termination costs. (2) Includes impairments of both lease right-of-use assets and property and equipment.
Schedule of Restructuring Reserve by Type of Cost	The following table provides the activity in the Company’s restructuring related liabilities, which are included within accounts payable, compensation and benefits and other current liabilities on the consolidated balance sheet (in thousands): Six Months Ended June 29, 2024 Balance at the beginning of year $ 8,720 Expenses 9,919 Cash payments (16,916) Balance at the end of the period $ 1,723

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 29, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Warranty Liabilities	The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended June 29, 2024 July 1, 2023 Balance at beginning of period $ 8,503 $ 8,997 Additions charged to costs and expenses for current-year sales 7,675 8,194 Deductions from reserves (8,048) (8,315) Changes in liability for pre-existing warranties during the current year, including expirations (171) 111 Balance at end of period $ 7,959 $ 8,987

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Level 1 - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Other non-current assets | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities assets funding the deferred compensation plan	$ 19	$ 19
Other non-current liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan liability	$ 19	$ 19

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 7,899	$ 9,092
Work in progress	94	92
Finished goods	87,852	106,249
Inventories	$ 95,845	$ 115,433

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 64,000		$ 64,000		$ 64,000
Patents
Goodwill And Intangible Assets [Line Items]
Finite lived intangible assets, gross	2,000		2,000		2,000
Accumulated amortization	900		900		800
Amortization expense	55	$ 55	100	$ 100
Trade Names
Goodwill And Intangible Assets [Line Items]
Indefinite-lived trade name/trademarks	$ 1,400		$ 1,400		$ 1,400

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Schedule of Annual Amortization of Definite-Lived Tangible Assets (Details) $ in Thousands	Jun. 29, 2024 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2024 (excluding the six months ended June 29, 2024)	$ 111
2025	226
2026	222
2027	222
2028	155
2029	99
Thereafter	46
Total future amortization for definite-lived intangible assets	$ 1,081

Credit Agreement - Narrative (D

Credit Agreement - Narrative (Details) - Line of Credit $ in Millions	Jun. 29, 2024 USD ($)
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 680
Total commitment amount	$ 1,000
Debt Covenant Period One
Line of Credit Facility [Line Items]
Net leverage ratio, maximum threshold	5.50
Minimum interest coverage ratio	1.25
Debt Covenant Period Two
Line of Credit Facility [Line Items]
Net leverage ratio, maximum threshold	5
Minimum interest coverage ratio	1.50
Debt Covenant Period Three
Line of Credit Facility [Line Items]
Net leverage ratio, maximum threshold	4.80
Minimum interest coverage ratio	3
Debt Covenant Period Four
Line of Credit Facility [Line Items]
Net leverage ratio, maximum threshold	4

Credit Agreement - Schedule of

Credit Agreement - Schedule of Borrowings Under Credit Facility (Details) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Debt Disclosure [Abstract]
Outstanding borrowings	$ 540,200	$ 539,500
Outstanding letters of credit	7,147	7,147
Additional borrowing capacity	$ 132,653	$ 138,353
Weighted-average interest rate	8.40%	8.50%

Leases - Narrative (Details)

Leases - Narrative (Details)	Jun. 29, 2024
Minimum | Retail Store Leases
Lessee, Lease, Description [Line Items]
Lease term	5 years
Minimum | Lease Vehicles and Certain Equipment Under Operating Leases
Lessee, Lease, Description [Line Items]
Lease term	3 years
Maximum | Retail Store Leases
Lessee, Lease, Description [Line Items]
Lease term	10 years
Maximum | Office and Manufacturing Leases
Lessee, Lease, Description [Line Items]
Lease term	15 years
Maximum | Lease Vehicles and Certain Equipment Under Operating Leases
Lessee, Lease, Description [Line Items]
Lease term	6 years

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Leases [Abstract]
Operating lease costs	$ 26,909	$ 28,083	$ 53,735	$ 56,372
Variable lease cost	$ 8	$ 129	$ (41)	$ 182

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Leases [Abstract]
2024 (excluding the six months ended June 29, 2024)	$ 53,107
2025	100,672
2026	88,780
2027	72,728
2028	60,841
2029	41,075
Thereafter	71,244
Total operating lease payments	488,447
Less: Interest	79,723
Present value of operating lease liabilities	408,724
Amount leases executed, not yet commenced, excluded from table.	19,000
Operating lease liabilities, current	$ 80,914	$ 81,760

Leases - Schedule of Other Info

Leases - Schedule of Other Information Related Operating Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Leases [Abstract]
Weighted-average remaining lease term (in years)	5 years 8 months 12 days		5 years 10 months 24 days
Weighted-average discount rate	6.60%		6.50%
Cash paid for amounts included in present value of operating lease liabilities	$ 54,300	$ 53,476
Right-of-use assets obtained in exchange for operating lease liabilities	$ 16,313	$ 32,831

Repurchases of Common Stock (De

Repurchases of Common Stock (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Repurchases Of Common Stock [Abstract]
Stock acquired through tax withholding restricted stock	$ 42	$ 138	$ 600	$ 3,500
Authorized share repurchase program	600,000		600,000
Remaining authorized stock purchase plan	$ 348,000		$ 348,000

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Deferred Contract Assets and Deferred Contract Liabilities (Details) - USD ($) $ in Thousands	Jun. 29, 2024	Dec. 30, 2023
Deferred contract assets included in:
Deferred contract assets	$ 82,083	$ 83,362
Deferred contract liabilities included in:
Deferred contract liabilities	103,082	105,519
Other current assets
Deferred contract assets included in:
Other current assets	29,771	28,567
Other non-current assets
Deferred contract assets included in:
Other non-current assets	52,312	54,795
Other current liabilities
Deferred contract liabilities included in:
Other current liabilities	37,720	36,421
Other non-current liabilities
Deferred contract liabilities included in:
Other non-current liabilities	$ 65,362	$ 69,098

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized, included in beginning deferred contract liability balance	$ 10	$ 10	$ 19	$ 19
Transferred at Point in Time | Revenue from Contract with Customer Benchmark | Timing of Transfer of Goods or Services Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue recognized at a point in time	98%	98%	98%	98%
SleepIQ Technology | Minimum
Disaggregation of Revenue [Line Items]
Estimated product life			4 years 6 months
SleepIQ Technology | Maximum
Disaggregation of Revenue [Line Items]
Estimated product life			5 years

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Disaggregation of Revenue [Line Items]
Total Company	$ 408,413	$ 458,789	$ 878,862	$ 985,316
Retail stores
Disaggregation of Revenue [Line Items]
Total Company	358,584	402,145	773,339	860,808
Online, phone, chat and other
Disaggregation of Revenue [Line Items]
Total Company	$ 49,829	$ 56,644	$ 105,523	$ 124,508

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Sales Return Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Sales Return Liability [Roll Forward]
Balance at beginning of year	$ 22,402	$ 25,594
Additions that reduce net sales	46,664	57,849
Deductions from reserves	(48,535)	(57,967)
Balance at end of period	$ 20,531	$ 25,476

Stock-based Compensation Expe_3

Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 3,992	$ 5,252	$ 8,109	$ 9,890
Income tax benefit	809	1,417	1,719	2,670
Total stock-based compensation expense, net of tax	3,183	3,835	6,390	7,220
Stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,294	4,258	6,438	8,113
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 698	$ 994	$ 1,671	$ 1,777

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Profit Sharing And 401(k) Plan [Abstract]
Employee compensation deferral (as a percent)			50%
Employer contributions	$ 1.2	$ 2.8	$ 3.2	$ 5.2

Net Income per Common Share - S

Net Income per Common Share - Schedule of Components of Basic and Diluted Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 29, 2024	Mar. 30, 2024	Jul. 01, 2023	Apr. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Earnings Per Share [Abstract]
Net (loss) income	$ (5,051)	$ (7,482)	$ 754	$ 11,465	$ (12,533)	$ 12,219
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding (in shares)	22,614		22,460		22,560	22,378
Dilutive effect of stock-based awards (in shares)	0		42		0	165
Diluted weighted-average shares outstanding (in shares)	22,614		22,502		22,560	22,543
Net (loss) income per share – basic (in dollars per share)	$ (0.22)		$ 0.03		$ (0.56)	$ 0.55
Net (loss) income per share – diluted (in dollars per share)	$ (0.22)		$ 0.03		$ (0.56)	$ 0.54

Net Income per Common Share - N

Net Income per Common Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	1.3	1.3	1.3	1.2

Restructuring Costs - Narrative

Restructuring Costs - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		9 Months Ended
	Jun. 29, 2024	Dec. 30, 2023	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024
Restructuring Cost and Reserve [Line Items]
Restructuring costs and asset impairment charges	$ 1,819	$ 15,700	$ 0	$ 12,419	$ 0	$ 28,147
Minimum
Restructuring Cost and Reserve [Line Items]
Remaining expected restructuring	1,000			1,000		1,000
Maximum
Restructuring Cost and Reserve [Line Items]
Remaining expected restructuring	$ 2,000			$ 2,000		$ 2,000

Restructuring Costs - Schedule

Restructuring Costs - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		9 Months Ended
	Jun. 29, 2024	Dec. 30, 2023	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024
Restructuring Cost and Reserve [Line Items]
Total cash restructuring costs	$ 1,819			$ 9,919		$ 23,405
Asset impairments	0			2,500		4,742
Total restructuring costs	1,819	$ 15,700	$ 0	12,419	$ 0	28,147
Contract termination costs
Restructuring Cost and Reserve [Line Items]
Total cash restructuring costs	(230)			4,183		11,593
Severance and employee-related benefits
Restructuring Cost and Reserve [Line Items]
Total cash restructuring costs	401			1,242		6,208
Professional fees and other
Restructuring Cost and Reserve [Line Items]
Total cash restructuring costs	$ 1,648			$ 4,494		$ 5,604

Restructuring Costs - Schedul_2

Restructuring Costs - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 29, 2024	Jun. 29, 2024	Jun. 29, 2024
Restructuring Reserve [Roll Forward]
Balance at the beginning of year		$ 8,720
Expenses	$ 1,819	9,919	$ 23,405
Cash payments		(16,916)
Balance at the end of the period	$ 1,723	$ 1,723	$ 1,723

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Warranty Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Warranty Liabilities [Roll Forward]
Balance at beginning of period	$ 8,503	$ 8,997
Additions charged to costs and expenses for current-year sales	7,675	8,194
Deductions from reserves	(8,048)	(8,315)
Changes in liability for pre-existing warranties during the current year, including expirations	(171)	111
Balance at end of period	$ 7,959	$ 8,987

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details)	Oct. 12, 2022 litigationDemand
Pending Litigation
Loss Contingencies [Line Items]
Number of litigation demands	2