SLEEP NUMBER CORP, 10-K filed on 3/7/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Jan. 25, 2025
Jun. 29, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 28, 2024    
Current Fiscal Year End Date --12-28    
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 Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 206,568
Entity Common Stock, Shares Outstanding   22,389,000  
Documents Incorporated by Reference Portions of the registrant’s proxy statement to be furnished to shareholders in connection with its 2025 Annual Meeting of Shareholders are incorporated by
reference in Part III, Items 10-14 of this Annual Report on Form 10-K.
    
Entity Central Index Key 0000827187    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.0.1
Audit Information
 12 Months Ended
Dec. 28, 2024
Audit Information [Abstract]  
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location Minneapolis, Minnesota
Auditor Firm ID 34
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Current assets:    
Cash and cash equivalents $ 1,950 $ 2,539
Accounts receivable, net of allowances of $1,113 and $1,437, respectively 17,516 26,859
Inventories 103,152 115,433
Prepaid expenses 14,568 16,660
Other current assets 44,098 44,637
Total current assets 181,284 206,128
Non-current assets:    
Property and equipment, net 129,574 179,503
Operating lease right-of-use assets 356,641 395,411
Goodwill and intangible assets, net 66,412 66,634
Deferred income taxes 33,575 20,253
Other non-current assets 93,324 82,951
Total assets 860,810 950,880
Current liabilities:    
Borrowings under revolving credit facility 546,600 539,500
Accounts payable 107,619 135,901
Customer prepayments 46,933 49,143
Accrued sales returns 19,092 22,402
Compensation and benefits 31,038 28,273
Taxes and withholding 18,619 17,134
Operating lease liabilities 82,307 81,760
Other current liabilities 55,804 61,958
Total current liabilities 908,012 936,071
Non-current liabilities:    
Operating lease liabilities 307,201 351,394
Other non-current liabilities 97,183 105,343
Total liabilities 1,312,396 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, 22,388 and 22,235 shares issued and outstanding, respectively 224 222
Additional paid-in capital 27,390 16,716
Accumulated deficit (479,200) (458,866)
Total shareholders’ deficit (451,586) (441,928)
Total liabilities and shareholders’ deficit $ 860,810 $ 950,880
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Current assets:    
Accounts Receivable, Allowance for Credit Loss, Current $ 1,113 $ 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) 22,388,000 22,235,000
Common stock, shares outstanding (in shares) 22,388,000 22,235,000
v3.25.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net sales $ 1,682,296 $ 1,887,482 $ 2,114,297
Cost of sales 679,523 798,952 912,001
Gross profit 1,002,773 1,088,530 1,202,296
Operating expenses:      
Sales and marketing 766,624 847,442 919,629
General and administrative 149,956 146,621 153,266
Research and development 45,255 55,797 61,521
Restructuring costs 18,066 15,728 0
Total operating expenses 979,901 1,065,588 1,134,416
Operating income 22,872 22,942 67,880
Interest expense, net 48,368 42,695 18,985
(Loss) income before income taxes (25,496) (19,753) 48,895
Income tax (benefit) expense (5,162) (4,466) 12,285
Net (loss) income $ (20,334) $ (15,287) $ 36,610
Basic net (loss) income per share:      
Net (loss) income per share - basic (in dollars per share) $ (0.90) $ (0.68) $ 1.63
Weighted-average shares - basic (in shares) 22,606 22,429 22,396
Diluted net (loss) income per share:      
Net (loss) income per share - diluted (in dollars per share) $ (0.90) $ (0.68) $ 1.60
Weighted-average shares (in shares) 22,606 22,429 22,852
v3.25.0.1
Consolidated Statements of Shareholders' Deficit - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Balance (in shares) at Jan. 01, 2022   22,683,000    
Balance at Jan. 01, 2022 $ (424,953) $ 227 $ 3,971 $ (429,151)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net (loss) income 36,610     36,610
Exercise of common stock options (in shares)   48,000    
Exercise of common stock options 1,131 $ 0 1,131  
Stock-based compensation (in shares)   405,000    
Stock-based compensation 13,223 $ 4 13,219  
Repurchases of common stock (in shares)   (1,122,000)    
Repurchases of common stock (64,188) $ (11) (13,139) (51,038)
Balance (in shares) at Dec. 31, 2022   22,014,000    
Balance at Dec. 31, 2022 (438,177) $ 220 5,182 (443,579)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net (loss) income (15,287)     (15,287)
Exercise of common stock options (in shares)   20,000    
Exercise of common stock options 428   428  
Stock-based compensation (in shares)   335,000    
Stock-based compensation 14,855 $ 3 14,852  
Repurchases of common stock (in shares)   (134,000)    
Repurchases of common stock $ (3,747) $ (1) (3,746) 0
Balance (in shares) at Dec. 30, 2023 22,235,000 22,235,000    
Balance at Dec. 30, 2023 $ (441,928) $ 222 16,716 (458,866)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net (loss) income $ (20,334)     (20,334)
Exercise of common stock options (in shares) 0 0    
Exercise of common stock options $ 0   0  
Stock-based compensation (in shares)   209,000    
Stock-based compensation 11,444 $ 3 11,441  
Repurchases of common stock (in shares)   (56,000)    
Repurchases of common stock $ (768) $ (1) (767)  
Balance (in shares) at Dec. 28, 2024 22,388,000 22,388,000    
Balance at Dec. 28, 2024 $ (451,586) $ 224 $ 27,390 $ (479,200)
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net (loss) income $ (20,334) $ (15,287) $ 36,610
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Depreciation and amortization 66,351 74,043 67,401
Stock-based compensation 11,444 14,855 13,223
Net loss on disposals and impairments of assets 4,315 2,898 291
Deferred income taxes (13,322) (12,295) (8,646)
Changes in operating assets and liabilities:      
Accounts receivable 9,343 (854) (287)
Inventories 12,281 (1,399) (11,560)
Income taxes 3,987 (5,969) 1,356
Prepaid expenses and other assets (10,867) (5,220) 19,379
Accounts payable (15,910) (28,934) (4,743)
Customer prepayments (2,210) (24,038) (56,318)
Accrued compensation and benefits 2,755 (2,943) (19,821)
Other taxes and withholding (2,502) (519) 179
Other accruals and liabilities (18,188) (3,366) (926)
Net cash provided by (used in) operating activities 27,143 (9,028) 36,138
Cash flows from investing activities:      
Purchases of property and equipment (23,505) (57,056) (69,454)
Proceeds from sales of property and equipment 156 21 49
Issuance of notes receivable (2,942) (1,317) 0
Investment in non-marketable equity securities 0 0 (1,202)
Net cash used in investing activities (26,291) (58,352) (70,607)
Cash flows from financing activities:      
Repurchases of common stock (768) (3,747) (64,188)
Net (decrease) increase in short-term borrowings (673) 73,463 97,647
Proceeds from issuance of common stock 0 428 1,131
Debt issuance costs 0 (2,017) (718)
Net cash (used in) provided by financing activities (1,441) 68,127 33,872
Net (decrease) increase in cash and cash equivalents (589) 747 (597)
Cash and cash equivalents, at beginning of period 2,539 1,792 2,389
Cash and cash equivalents, at end of period 1,950 2,539 1,792
Supplemental Disclosure of Cash Flow Information      
Income taxes paid, net of refunds 4,012 13,716 19,792
Interest paid 45,092 40,570 16,918
Purchases of property and equipment included in accounts payable $ 1,994 $ 6,670 $ 11,707
v3.25.0.1
Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Business and Summary of Significant Accounting Policies Business and Summary of Significant Accounting Policies
Business & Basis of Presentation
Sleep Number Corporation and its 100%-owned subsidiaries (Sleep Number or the Company) have a vertically
integrated business model and are the exclusive designer, manufacturer, marketer, retailer and servicer of Sleep Number
beds which allows it to offer consumers high-quality, individualized sleep solutions and services. Sleep Number also
offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products.
Sleep Number generates revenue by marketing its innovations directly to new and existing customers, and selling
products through its Stores, Online, Phone, Chat (Total Retail) and Other.
The consolidated financial statements include the accounts of Sleep Number Corporation and its 100%-owned
subsidiaries. All intra-entity balances and transactions have been eliminated in consolidation.
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to December 31. Fiscal years and their respective fiscal year
ends were as follows: fiscal 2024 ended December 28, 2024; fiscal 2023 ended December 30, 2023; and fiscal 2022
ended December 31, 2022. Fiscal 2024, 2023 and 2022 each had 52 weeks.
Use of Estimates in the Preparation of Financial Statements
The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles
(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 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.
Cash and Cash Equivalents
Cash and cash equivalents include highly-liquid investments with original maturities of three months or less. The carrying
value of these investments approximates fair value due to their short-term maturity. The Company’s banking
arrangements allow it to fund outstanding checks when presented to the financial institution for payment, resulting in
book overdrafts. Book overdrafts are included in accounts payable in the consolidated balance sheet and in net increase
(decrease) in short-term borrowings in the financing activities section of the Company’s consolidated statement of cash
flows. Book overdrafts totaled $22 million and $30 million at December 28, 2024 and December 30, 2023, respectively.
Accounts Receivable
Accounts receivable are recorded net of an allowance for expected credit losses and consist primarily of receivables from
third-party financiers for customer credit purchases. The allowance is recognized in an amount equal to anticipated
future write-offs. The Company estimates future write-offs based on delinquencies, aging trends, industry risk trends, its
historical experience and current trends. Account balances are charged off against the allowance when the Company
believes it is probable the receivable will not be recovered.
Inventories
Inventories include materials, labor and overhead and are stated at the lower of cost or net realizable value. Cost is
determined by the first-in, first-out method. The Company reviews inventory quantities on hand and records reserves for
obsolescence based on historical selling prices, current market conditions and forecasted product demand, to reduce
inventory to net realizable value.
Property and Equipment
Property and equipment, carried at cost, is depreciated using the straight-line method over the estimated useful lives of
the assets. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts with
any resulting gain or loss included in net (loss) income in the consolidated statement of operations. Maintenance and
repairs are charged to expense as incurred. Major renewals and betterments that extend useful life are capitalized.
Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the contractual
term of the lease, with consideration of lease renewal options if renewal appears probable.
Estimated useful lives of the Company’s property and equipment by major asset category are as follows:
Leasehold improvements
5 to 15 years
Furniture and equipment
3 to 15 years
Production machinery
3 to 7 years
Computer equipment and software
3 to 12 years
Goodwill and Intangible Assets, Net
Goodwill is the difference between the purchase price of a company and the fair market value of the acquired company’s
net identifiable assets. The Company’s intangible assets include developed technologies and trade names/trademarks.
Definite-lived intangible assets are being amortized using the straight-line method over their estimated lives, ranging
from 8-10 years.
Asset Impairment Charges
Long-lived Assets and Definite-lived Intangible Assets
The Company reviews its long-lived assets and definite-lived intangible assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When evaluating long-
lived assets for potential impairment, the Company first compares the carrying value of the asset to the estimated future
cash flows (undiscounted and without interest charges plus proceeds expected from disposition, if any). If the estimated
undiscounted cash flows are less than the carrying value of the asset, the Company calculates an impairment loss. The
impairment loss calculation compares the carrying value of the asset to the asset’s estimated fair value. When the
Company recognizes an impairment loss, the carrying amount of the asset is reduced to estimated fair value based on
discounted cash flows, quoted market prices or other valuation techniques. Assets to be disposed of are reported at the
lower of the carrying amount of the asset or fair value less costs to sell. The Company reviews retail store assets for
potential impairment based on historical cash flows, lease termination provisions and expected future retail store
operating results. If the Company recognizes an impairment loss for a depreciable long-lived asset, the adjusted carrying
amount of the asset becomes its new cost basis and will be depreciated (amortized) over the remaining useful life of that
asset.
Goodwill and Indefinite-lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment annually, or when there
are indicators of impairment, using a fair value approach. The goodwill impairment test involves a comparison of the fair
value of a reporting unit with its carrying value. Fair value is determined using a market-based approach utilizing widely
accepted valuation techniques, including quoted market prices and the Company’s market capitalization. The Company
has only one reporting unit, which has a negative carrying value. The reporting unit had a goodwill balance of $64 million
at December 28, 2024 and December 30, 2023. Indefinite-lived intangible assets are assessed for impairment by
comparing the carrying value of an asset with its fair value. If the carrying value exceeds fair value, an impairment loss is
recognized in an amount equal to the excess. Based on the Company’s 2024 assessments, it determined there was no
impairment.
Other Investments
The Company had an investment in non-marketable equity securities of $1.2 million at both December 28, 2024 and
December 30, 2023. This investment was made in a strategic product-development partner and is included in other non-
current assets in the consolidated balance sheet. Non-marketable equity securities are equity securities without readily
determinable fair value that are measured and recorded using a measurement alternative that measures the securities at
cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes.
Warranty Liabilities
The Company provides a limited warranty on most of the products it sells. The estimated warranty costs, which are
expensed at the time of sale and included in cost of sales, are based on historical trends and warranty claim rates
incurred by the Company and are adjusted for any current trends as appropriate. The majority of the Company’s
warranty claims are incurred within the first year. The Company’s warranty liability contains uncertainties because its
warranty obligations cover an extended period of time and require management to make estimates for claim rates and
the projected cost of materials and freight associated with sending replacement parts to customers. The Company
regularly assesses and adjusts the estimate of accrued warranty claims by updating claims rates for actual trends and
projected claim costs. The warranty liabilities are included in other current liabilities and other non-current liabilities in
the consolidated balance sheet.
The Company classifies as non-current those estimated warranty costs expected to be paid out in greater than one year.
The activity in the accrued warranty liabilities account was as follows (in thousands):
 
2024
2023
2022
Balance at beginning of period
$8,503
$8,997
$10,069
Additions charged to costs and expenses for current-year sales
13,821
15,939
16,694
Deductions from reserves
(14,657)
(16,438)
(17,157)
Change in liabilities for pre-existing warranties during the current
year, including expirations
(720)
5
(609)
Balance at end of period
$6,947
$8,503
$8,997
Fair Value Measurements
Fair value measurements are reported in one of three levels based on the lowest level of significant input used:
•Level 1 – observable inputs such as quoted prices in active markets;
•Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
•Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop
its own assumptions.
The Company generally estimates fair value of long-lived assets, including its retail stores, using the income approach,
which the Company based on estimated future cash flows (discounted and with interest charges). The inputs used to
determine fair value relate primarily to future assumptions regarding sales volumes, gross profit rates, retail store
operating expenses and applicable probability weightings regarding future alternative uses. These inputs are
categorized as Level 3 inputs under the fair value measurements guidance. The inputs used represent management’s
assumptions about what information market participants would use in pricing the assets and are based upon the best
information available at the balance sheet date.
Shareholders’ Deficit
Dividends
The Company is not restricted from paying cash dividends under the Credit Agreement so long as it is not in default
under the Credit Agreement, the Company’s leverage ratio (as defined in the Credit Agreement) after giving effect to
such restricted payments (as defined in the Credit Agreement) would not exceed 3.00:1.00 and no default or event of
default (as defined in the Credit Agreement) would result therefrom. At December 28, 2024, the Company exceeded the
3.00:1.00 leverage ratio. However, Sleep Number has not historically paid, and has no current plans to pay, cash
dividends on the Company’s common stock.
Share Repurchases
At December 28, 2024, there was $348 million remaining authorization under the $600 million board-approved share
repurchase program. There is no expiration date governing the period over which the Company can repurchase shares.
Any repurchased shares are constructively retired and returned to an unissued status. The cost of stock repurchases is
first charged to additional paid-in-capital. Once additional paid-in capital is reduced to zero, any additional amounts are
charged to accumulated deficit.
Revenue Recognition
The Company recognizes revenue when control of the promised goods or services is transferred to its customers in an
amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue
recognized excludes sales taxes. Amounts billed to customers for delivery and setup are included in net sales. For most
products, the Company receives payment before or promptly after the products or services are delivered to the
customer.
The Company accepts sales returns of most products during a 100-night trial period. Accrued sales returns represent a
refund liability for the amount of consideration that the Company does not expect to be entitled to because it will be
refunded to customers. The refund liability estimate is based on historical return rates and is adjusted for any current
trends as appropriate. Each reporting period, the Company remeasures the liability to reflect changes in the estimate,
with a corresponding adjustment to net sales.
Sleep Number beds sold with SleepIQ technology contain multiple performance obligations including the bed, and
SleepIQ hardware and software. The Company analyzes its multiple performance obligations to determine whether they
are distinct and can be separated or whether they must be accounted for as a single performance obligation. The
Company determined that beds sold with the SleepIQ technology have two performance obligations consisting of: (i) the
bed; and (ii) SleepIQ hardware and software. SleepIQ hardware and software are not separable as the hardware and
related software are not sold separately and the software is integral to the hardware’s functionality. The Company
determined the transaction price for multiple performance obligations based on their relative standalone selling prices.
The performance obligation related to the bed is satisfied at a point in time. The performance obligation related to
SleepIQ technology is satisfied over time based on the ongoing access and usage by the customer of software essential
to the functionality of SleepIQ technology. The deferred revenue and costs related to SleepIQ technology are
recognized on a straight-line basis over the estimated period of benefit to the customer of 4.5 to 5.0 years because its
inputs are generally expended evenly throughout the performance period.
See Note 9, Revenue Recognition, for additional information on revenue recognition and sales returns.
Cost of Sales, Sales and Marketing, General and Administrative (G&A) and Research & Development (R&D) Expenses
The following tables summarize the primary costs classified in each major expense category (the classification of which
may vary within the Company’s industry):
Cost of Sales
Sales & Marketing
•
Costs associated with purchasing, manufacturing, shipping,
handling and delivering the Company’s products to its retail
stores and customers, including payroll and benefits;
•
Advertising, marketing and media production;
•
Marketing and selling materials such as brochures, videos,
websites, customer mailings and in-store signage;
•
Physical inventory losses, scrap and obsolescence;
•
Payroll and benefits for sales and customer service staff;
•
Related occupancy and depreciation expenses;
•
Store occupancy costs;
•
Costs associated with returns and exchanges; and
•
Store depreciation expense;
•
Estimated costs to service customer warranty claims.
•
Credit card processing fees; and
•
Promotional financing costs.
G&A
R&D(1)
•
Payroll and benefit costs for corporate employees, including
information technology, legal, human resources, finance, sales
and marketing administration, investor relations and risk
management;
•
Internal labor and benefits related to research and
development activities;
•
Outside consulting services related to research and
development activities; and
•
Occupancy costs of corporate facilities;
•
Testing equipment related to research and development
•
Depreciation related to corporate assets;
___________________________
(1) Costs incurred in connection with R&D are charged to expense as incurred.
•
Information hardware, software and maintenance;
•
Insurance;
•
Investor relations costs; and
•
 Other overhead costs.
Leases
The Company determines if an arrangement is a lease at inception. Right-of-use (ROU) assets and operating lease
liabilities are recognized at the lease commencement date based on the estimated present value of future lease
payments over the lease term. The Company elected the option to not separate lease and non-lease components for all
of its leases. Most of the Company’s leases do not provide an implicit interest rate nor is the rate available to it from its
lessors. As an alternative, the Company uses its estimated incremental borrowing rate, which is derived from information
available at the lease commencement date, including publicly available data, in determining the present value of lease
payments. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet as an
ROU asset or operating lease liability. The Company recognizes operating lease costs for these short-term leases,
primarily small equipment leases, on a straight-line basis over the lease term. At December 28, 2024, the Company’s
finance lease ROU assets and associated lease liabilities were not significant.
See Note 7, Leases, for further information regarding the Company’s operating leases.
Pre-opening Costs
Costs associated with the start-up and promotion of new retail store openings are expensed as incurred.
Advertising Costs
The Company incurs advertising costs associated with print, digital and broadcast advertisements. Advertising costs are
charged to expense when the ad first runs. Advertising expense was $248 million, $272 million and $309 million in 2024,
2023 and 2022, respectively and is included in sales and marketing expenses on the consolidated statement of
operations. Advertising costs deferred and included in prepaid expenses in the consolidated balance sheet were not
significant at December 28, 2024 or December 30, 2023, respectively.
Insurance
The Company is self-insured for certain losses related to health and workers’ compensation claims, although the
Company obtains third-party insurance coverage to limit exposure to these claims. The Company estimates its self-
insured liabilities using a number of factors including historical claims experience and analysis of incurred but not
reported claims. The Company’s self-insurance liability was $11 million and $13 million at December 28, 2024 and
December 30, 2023, respectively. At December 28, 2024 and December 30, 2023, $7 million and $8 million,
respectively, were included in current liabilities: compensation and benefits in the consolidated balance sheet and
$4 million and $5 million, respectively, were included in other non-current liabilities in the consolidated balance sheet.
Software Capitalization
For software developed or obtained for internal use, the Company capitalizes direct external costs associated with
developing or obtaining internal-use software. In addition, the Company capitalizes certain payroll and payroll-related
costs for employees who are directly involved with the development of such applications. Capitalized costs related to
internal-use software under development are treated as construction-in-progress until the program, feature or
functionality is ready for its intended use, at which time depreciation commences. The Company expenses any data
conversion or training costs as incurred. Capitalized software costs are included in property and equipment, net in the
consolidated balance sheet.
The Company capitalizes costs incurred with the implementation of a cloud computing arrangement that is a service
contract, consistent with its policy for software developed or obtained for internal use. The capitalized implementation
costs of cloud computing arrangements are expensed over the term of the cloud computing arrangement in the same
line item in the statement of operations as the associated hosting fees. Capitalized costs incurred with the
implementation of a cloud computing arrangement are included in prepaid expenses and other non-current assets in the
Company’s consolidated balance sheet, and in operating cash flows in its consolidated statement of cash flows.
Stock-based Compensation
The Company compensates officers, directors and key employees with stock-based compensation under stock plans
approved by its shareholders and administered under the supervision of the Company’s Board of Directors (Board). At
December 28, 2024, a total of 2.2 million shares were available for future grant. These plans include non-qualified stock
options and stock awards.
The Company records stock-based compensation expense based on the award’s fair value at the grant date and the
awards that are expected to vest. The Company recognizes stock-based compensation expense over the period during
which an employee is required to provide services in exchange for the award. The Company reduces compensation
expense by estimated forfeitures. Forfeitures are estimated using historical experience and projected employee
turnover. The Company includes, as part of cash flows from operating activities, the benefit of tax deductions in excess
of recognized stock-based compensation expense. In addition, excess tax benefits or deficiencies are recorded as
discrete adjustments to income tax expense.
Stock Options
Stock option awards are granted at exercise prices equal to the closing price of the Company’s stock on the grant date.
Generally, options vest proportionally over three years and expire after 10 years. Compensation expense is recognized
ratably over the vesting period.
The Company determines the fair value of stock options granted and the resulting compensation expense at the date-of-
grant using the Black-Scholes-Merton option-pricing model. Descriptions of significant assumptions used to estimate the
expected volatility, risk-free interest rate and expected term are as follows:
Expected Volatility – expected volatility was determined based on implied volatility of the Company’s traded options
and historical volatility of the Company’s stock price.
Risk-Free Interest Rate – the risk-free interest rate was based on the implied yield available on U.S. Treasury zero-
coupon issues at the date of grant with a term equal to the expected term.
Expected Term – expected term represents the period that the Company’s stock-based awards are expected to be
outstanding and was determined based on historical experience and anticipated future exercise patterns, giving
consideration to the contractual terms of unexercised stock-based awards.
Stock Awards
The Company issues stock awards to certain employees in conjunction with its stock-based compensation plan. The
stock awards generally vest over three years based on continued employment (time-based). Compensation expense
related to stock awards, except for stock awards with a market condition, is determined on the grant date based on the
publicly quoted closing price of the Company’s common stock and is charged to earnings on a straight-line basis over
the vesting period. Stock awards with a market condition are valued using a Monte Carlo simulation model. The
significant assumptions used to estimate the expected volatility and risk-free interest rate are similar to those described
above in Stock Options.
Certain time-based stock awards have a performance condition (performance-based). The final number of shares earned
for performance-based stock awards and the related compensation expense is adjusted up or down to the extent the
performance target is met. The actual number of shares that will ultimately be awarded range from 0% - 200% of the
targeted amount for the 2024, 2023 and 2022 awards. The Company evaluates the likelihood of meeting the
performance targets at each reporting period and adjust compensation expense, on a cumulative basis, based on the
expected achievement of each of the performance targets. For performance-based stock awards granted in 2024, 2023
and 2022, the performance targets are based on growth in net sales and in operating profit, and the performance
periods are fiscal 2024 through 2026, 2023 through 2025 and fiscal 2022 through 2024, respectively.
See Note 8, Shareholders’ Deficit, for additional information on stock-based compensation.
Income Taxes
The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax
bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in
the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax
rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A
valuation allowance is established for any portion of deferred tax assets that are not considered more likely than not to
be realized. The Company evaluates all available positive and negative evidence, including its forecast of future taxable
income, to assess the need for a valuation allowance on its deferred tax assets.
The Company records a liability for unrecognized tax benefits from uncertain tax positions taken, or expected to be
taken, in the Company’s tax returns. The Company follows a two-step approach to recognizing and measuring uncertain
tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence
indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or
litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50%
likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating
its tax positions and tax benefits, which may require periodic adjustments, and may not accurately forecast actual
outcomes.
The Company classifies net interest and penalties related to income taxes as a component of income tax expense in its
consolidated statement of operations.
Net (Loss) Income Per Share
The Company calculates basic net (loss) income per share by dividing net (loss) income by the weighted-average number
of common shares outstanding during the period. It calculates diluted net (loss) income per share based on the
weighted-average number of common shares outstanding adjusted by the number of potentially dilutive common shares
as determined by the treasury stock method. Potentially dilutive shares consist of stock options and stock awards.
Sources of Supply
The Company currently obtains materials and components used to produce its beds from outside sources. As a result,
the Company is dependent upon suppliers that in some instances, are its sole source of supply, or supply the vast
majority of the particular component or material. The Company continuously evaluates opportunities to dual-source key
components and materials. The failure of one or more of the Company’s suppliers to provide it with materials or
components on a timely basis could significantly impact the consolidated results of operations and net (loss) income per
share. While the Company believes that these materials and components, or suitable replacements, could be obtained
from other sources in the event of a disruption or loss of supply, it may not be able to find alternative sources of supply
or alternative sources of supply on comparable terms and an unexpected loss of supply over a short period of time may
not allow the Company to replace these sources in the ordinary course of business.
Recently Adopted and Recently Issued Accounting Pronouncements
Accounting Pronouncements Recently Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued guidance within Accounting Standards
Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU
requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments
in this ASU and all existing disclosures in Topic 280. The Company has determined that its current business and
operations consist of a single business segment and a single reporting unit.
The amendments in this ASU are intended to improve segment disclosure requirements, primarily through enhanced
disclosures about significant segment expenses. The key amendments included in this ASU:
•Require disclosure on an annual and interim basis, of significant segment expenses that are regularly provided to the
chief operating decision maker (CODM) and are included within each reported measure of segment profit and loss.
•Require disclosure on an annual and interim basis, an amount for other segment items (defined in this ASU) and a
description of its composition.
•Clarify that if the CODM uses more than one measure of the segment’s profit or loss in assessing performance, one
or more of those additional measures may be reported.
•Require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported
measure(s) of segment profit or loss in assessing performance.
This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning
after December 15, 2024, with early adoption permitted. This guidance is required to be adopted by the Company
beginning with the annual period of 2024. The amendments should be applied retrospectively to all prior periods
presented in the consolidated financial statements. The Company adopted the new standard in the fourth quarter of
2024. The new required disclosures are included in Note 13, "Segments."
Accounting Pronouncements Issued But Not Yet Effective
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements in Income Tax Disclosures"
to enhance the transparency and decision usefulness of income tax disclosures. This amendment requires public
companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling
items that meet a quantitative threshold. Additionally, under the amendment, entities are required to disclose the
amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material
individual jurisdictions. Finally, the amendment requires entities to disclose income from continuing operations before
income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations
disaggregated by federal, state and foreign. The new rules are effective for annual periods beginning after December
15, 2024. The adoption of this standard is not expected to have a material impact on the Company’s consolidated
financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense
Disaggregation Disclosures (Subtopic 220-40)", which requires public business entities to disclose in the notes to the
financial statements more detailed information about the types of expenses included in certain expense captions in the
consolidated financial statements, including purchases of inventory, employee compensation, and depreciation and
amortization. The amendments are effective for the Company beginning with the 2027 annual period and in interim
periods beginning in 2028. Early adoption is permitted. The ASU may be adopted prospectively or retrospectively. The
Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related
disclosures.
Currently, management does not believe that any other recently issued, but not yet effective accounting
pronouncements, if currently adopted, would have a material impact on the Company’s consolidated financial
statements.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 28, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
At both December 28, 2024 and December 30, 2023, the Company had $19 million of debt and equity securities that
fund its 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 December 28, 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 it 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.
v3.25.0.1
Inventories
 12 Months Ended
Dec. 28, 2024
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consisted of the following (in thousands):
 
December 28,
2024
December 30,
2023
Raw Materials
$11,434
$9,092
Work in Progress
130
92
Finished goods
91,588
106,249
$103,152
$115,433
Finished goods inventories consisted of the following (in thousands):
 
December 28,
2024
December 30,
2023
Finished beds, including deliveries in-transit to those customers who have utilized
home delivery services
$34,725
$39,235
Finished components that were ready for assembly for the completion of beds
39,634
46,179
Retail accessories
17,229
20,835
 
$91,588
$106,249
v3.25.0.1
Property and Equipment
 12 Months Ended
Dec. 28, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following (in thousands):
 
December 28,
2024
December 30,
2023
Leasehold improvements
$136,127
$143,006
Furniture and equipment
153,106
158,309
Production machinery, computer equipment and software
300,486
306,972
Construction in progress
3,310
6,552
Less: Accumulated depreciation and amortization
(463,455)
(435,336)
$129,574
$179,503
Depreciation for 2024, 2023 and 2022 was $65 million, $71 million and $64 million, respectively.
v3.25.0.1
Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 28, 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 December 28, 2024 and December 30, 2023. Indefinite-lived trade name/trademarks totaled
$1.4 million at December 28, 2024 and December 30, 2023.
Definite-lived Intangible Assets
December 28, 2024
December 30, 2023
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Developed technologies
$18,851
$18,851
$18,851
$18,851
Patents
1,972
1,002
1,972
780
$20,823
$19,853
$20,823
$19,631
There was no amortization expense for developed technologies in 2024. Amortization expense for developed
technologies was $1.2 million and $2.0 million in 2023 and 2022, respectively. Amortization expense for patents was
$0.2 million, in each of 2024, 2023 and 2022.
Annual amortization for definite-lived intangible assets for subsequent years are as follows (in thousands):
2025
$226
2026
222
2027
222
2028
155
2029
99
Thereafter
46
Total future amortization for definite-lived intangible assets
$970
v3.25.0.1
Credit Agreement
 12 Months Ended
Dec. 28, 2024
Debt Disclosure [Abstract]  
Credit Agreement Credit Agreement
As of December 28, 2024, the Company’s credit facility had a total commitment amount of $678 million. The credit
facility, as amended, 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 $678 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 Company amended the Credit Agreement on November 2, 2023. The amendment, among other things: (a)
decreased the total aggregate commitment under the Credit Agreement from $825 million to $685 million; (b)
decreased the $625 million revolving loan commitment to $485 million; (c) decreased the accordion from $400 million to
$342.5 million; (d) increased the Applicable Commitment Fee Rate to 50 basis points when the Net Leverage Ratio is
greater than or equal to 3.50 to 1.00 (as each is defined in the Credit Agreement); (e) increased the Applicable Margin
by 25 to 75 basis points for each respective range of Net Leverage Ratios (as each is defined in the Credit Agreement);
(f) deemed the Company’s Net Leverage Ratio as greater than or equal to 4.00 to 1.00 but less than 4.50 to 1.00 as of
the amendment effective date to set pricing for the Applicable Commitment Fee Rate and Applicable Margin until
receipt of the compliance certificate for the quarterly reporting period ending December 30, 2023; (g) amended the
definition of Consolidated EBITDA (as defined in the Credit Agreement) to include cash add backs, capped at
$30 million for the quarterly reporting periods ending December 30, 2023, March 30, 2024, June 29, 2024, September
28, 2024, and December 28, 2024 and capped at $20 million for each quarterly reporting period ending thereafter; (h)
amended the definitions of each of Net Leverage Ratio and Senior Secured Leverage Ratio (as each is defined in the
Credit Agreement) to include the total operating lease liabilities of borrower, as calculated in accordance with ASC 842
accounting guidance (as of the end of the most recently completed quarterly reporting period) replacing the prior
language of six multiplied by Consolidated Rent Expense (for the most recently completed four quarterly reporting
periods); (i) adjusted the permissible maximum Net Leverage Ratio (as defined in the Credit Agreement) to (I) 5.00 to
1.00 for the quarterly reporting periods ending December 30, 2023 and March 30, 2024, (II) 5.50 to 1.00 for the quarterly
reporting period ending June 29, 2024, (III) 5.00 to 1.00 for the quarterly reporting period ending September 28, 2024,
(IV) 4.80 to 1.00 for the quarterly reporting period ending December 28, 2024, and (V) 4.00 to 1.00 for each quarterly
reporting period occurring thereafter; (j) adjusted the permissible minimum Interest Coverage Ratio (as defined in the
Credit Agreement) to (I) 1.50 to 1.00 for the quarterly reporting periods ending December 30, 2023 and March 30, 2024,
(II) 1.25 to 1.00 for the quarterly reporting period ending June 29, 2024, (III) 1.50 to 1.00 for the quarterly reporting
periods ending September 28, 2024 and December 28, 2024, and (IV) 3.00 to 1.00 for each quarterly reporting period
occurring thereafter; and (k) decreased the requisite Net Leverage Ratio from 3.75 to 1.00 down to 3.00 to 1.00 (under
the new applicable definitions) before any Acquisitions (with the exception of the Specified Acquisition) or Restricted
Payments (as each is defined in the Credit Agreement) may be made. A fee for the amendment was payable to the
approving lenders in an amount equal to 20 basis points multiplied by the sum of such lender's Revolving Credit
Commitment and outstanding Term Loans (as each is defined in the Credit Agreement).
The following tables summarizes the Company’s borrowings under the credit facility ($ in thousands):
 
December 28,
2024
December 30,
2023
Outstanding borrowings
$546,600
$539,500
Outstanding letters of credit
$7,147
$7,147
Additional borrowing capacity
$123,753
$138,353
Weighted-average interest rate
7.6%
8.5%
The Company amended the Credit Agreement on March 3, 2025. The amendment, among other things: (a) adds a
definition for "Liquidity" which means, on any date of determination, the sum of (x) Borrower's and its Subsidiaries'
unrestricted cash that is free and clear of Liens (other than those in favor of the Administrative Agent) plus (y) the
aggregate amount of unused Revolving Credit Commitments available for Credit Events on such date (including the
Borrower's ability to satisfy the requirements of Section 4.1 on such date) (as each is defined in the Credit Agreement);
(b) adds a Liquidity financial covenant wherein the Borrower shall cause the Liquidity to be equal or exceed $40 million
as of the last day of each fiscal month; (c) deems our Net Leverage Ratio as greater than or equal to 4.50 to 1.00 as of
the effective date to set pricing for the Applicable Commitment Fee Rate and Applicable Margin until receipt of the
compliance certificate for the quarterly reporting period ending September 27, 2025, (d) adjusts the permissible
maximum Net Leverage Ratio (as defined in the Credit Agreement) to (I) 4.75 to 1.00 for the quarterly reporting periods
ending March 29, 2025 and June 28, 2025, (II) 4.50 to 1.00 for the quarterly reporting period ending September 27,
2025, (III) 4.25 to 1.00 for the quarterly reporting period ending January 1, 2026, and (IV) 4.00 to 1.00 for each quarterly
reporting period occurring thereafter, and (e) adjusts the permissible minimum Interest Coverage Ratio (as defined in the
Credit Agreement) to (I) 1.90 to 1.00 for the quarterly reporting periods ending March 29, 2025, June 28, 2025, and
September 27, 2025, (II) 2.10 to 1.00 for the quarterly reporting period ending January 1, 2026, and (III) 3.00 to 1.00 for
each quarterly reporting period occurring thereafter. A fee for the amendment is payable to the approving lenders in an
amount equal to 20 basis points multiplied by the sum of such lender's Revolving Credit Commitment and outstanding
Term Loans (as each is defined in the Credit Agreement).
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 December 28, 2024.
v3.25.0.1
Leases
 12 Months Ended
Dec. 28, 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, its retail store leases generally provide for an initial lease term of five to 10 years. Sleep Number’s office and
manufacturing leases provide for an initial lease term of up to 15 years. In addition, its 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 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. Future payments for real estate taxes and certain building operating expenses for which the
Company is obligated are not included in operating lease costs.
At December 28, 2024, the Company’s finance lease right-of-use assets and lease liabilities were not significant.
Lease costs were as follows (in thousands):
2024
2023
2022
Operating lease costs(1)
$107,049
$113,510
$109,766
Variable lease costs
$43
$278
$877
____________________
(1)Includes short-term lease costs which are not significant.
The maturities of operating lease liabilities as of December 28, 2024, were as follows(1) (in thousands):
2025
$104,800
2026
94,005
2027
77,310
2028
64,734
2029
44,711
Thereafter
76,495
Total operating lease payments(2)
462,055
Less: Interest
72,547
Present value of operating lease liabilities
$389,508
        ___________________
(1)Total operating lease payments exclude $12 million of legally binding minimum lease payments for leases signed but not yet commenced.
(2)Includes the current portion of $82 million for operating lease liabilities.
Other information related to operating leases was as follows:
 
December 28,
2024
December 30,
2023
Weighted-average remaining lease term (years)
5.4
5.9
Weighted-average discount rate
6.6%
6.5%
(in thousands)
2024
2023
2022
Cash paid for amounts included in present value of operating
lease liabilities
$108,116
$108,294
$99,819
Right-of-use assets obtained in exchange for operating lease
liabilities
$57,712
$69,396
$82,117
v3.25.0.1
Shareholders' Deficit
 12 Months Ended
Dec. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Shareholders’ Deficit Shareholders’ DeficitStock-Based Compensation Expense
Total stock-based compensation expense was as follows (in thousands):
 
2024
2023
2022
Stock awards(1)
$8,157
$11,053
$9,471
Stock options
3,287
3,802
3,752
Total stock-based compensation expense(1)
11,444
14,855
13,223
Income tax benefit
2,747
3,476
3,319
Total stock-based compensation expense, net of tax
$8,697
$11,379
$9,904
____________________
(1)Changes in annual stock-based compensation expense includes the cumulative impact of the change in the expected achievements of certain
performance targets.
Stock Options
A summary of the Company’s stock option activity was as follows (in thousands, except per share amounts and years):
 
Stock
Options
Weighted-
Average
Exercise
Price per
Share
Weighted-
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value(1)
Outstanding at December 30, 2023
1,046
$40.80
6.2
$—
Granted
—
—
Exercised
—
—
Canceled/Forfeited
(104)
40.38
Outstanding at December 28, 2024
942
$40.85
5.6
$—
Exercisable at December 28, 2024
736
$42.90
4.9
$—
Vested and expected to vest at December 28, 2024
926
$40.95
5.6
$—
____________________
(1)Aggregate intrinsic value includes only those options where the current share price is equal to or greater than the share price on the date of grant.
Other information pertaining to options was as follows (in thousands, except per share amounts):
 
2024
2023
2022
Weighted-average grant date fair value of stock options granted
$—
$16.41
$30.22
Total intrinsic value (at exercise) of stock options exercised
$—
$298
$1,298
of stock options for the fiscal year ended December 28, 2024.
At December 28, 2024, there was $2.1 million of total stock option compensation expense related to non-vested stock
options not yet recognized, which is expected to be recognized over a weighted-average period of 1.2 years.
The assumptions used to calculate the fair value of options granted using the Black-Scholes-Merton option-pricing
model were as follows. There were no grants of new stock option awards for the fiscal year ended December 28, 2024.
Valuation Assumptions
2024
2023
2022
Expected dividend yield
—%
0.0%
0.0%
Expected volatility
—%
64%
57%
Risk-free interest rate
—%
3.8%
2.2%
Expected term (years)
—
5.7
5.3
Stock Awards
Stock award activity was as follows (in thousands, except per share amounts):
Time-
Based
Stock
Awards
Weighted-
Average
Grant Date
Fair Value
Performance-
Based
Stock Awards
Weighted-
Average
Grant Date
Fair Value
Outstanding at December 30, 2023
397
$37.38
699
$51.74
Granted
674
13.70
211
13.53
Vested
(181)
39.62
(45)
127.50
Canceled/Forfeited
(77)
23.05
(88)
99.19
Outstanding at December 28, 2024
813
$18.60
777
$31.74
At December 28, 2024, there was $8.7 million of unrecognized compensation expense related to non-vested time-based
stock awards, which is expected to be recognized over a weighted-average period of 1.8 years, and $2.8 million of
unrecognized compensation expense related to non-vested performance-based stock awards, which is expected to be
recognized over a weighted-average period of 1.7 years.
Repurchases of Common Stock
Repurchases of the Company’s common stock were as follows (in thousands):
 
2024
2023
2022
Amount repurchased under Board-approved share repurchase
program
$—
$—
$54,868
Amount repurchased in connection with the vesting of employee
restricted stock grants
768
3,747
9,320
Total amount repurchased (based on trade dates)
$768
$3,747
$64,188
As of December 28, 2024, the remaining authorization under the Board-approved $600 million share repurchase
program was $348 million.
Net (Loss) Income per Common Share
The components of basic and diluted net (loss) income per share were as follows (in thousands, except per share
amounts):
 
2024
2023
2022
Net (loss) income
$(20,334)
$(15,287)
$36,610
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding
22,606
22,429
22,396
Dilutive effect of stock-based awards
—
—
456
Diluted weighted-average shares outstanding
22,606
22,429
22,852
Net (loss) income per share – basic
$(0.90)
$(0.68)
$1.63
Net (loss) income per share – diluted
$(0.90)
$(0.68)
$1.60
Additional potential dilutive stock-based awards totaling 1.2 million, 1.3 million and 0.6 million for 2024, 2023 and 2022,
respectively, have been excluded from the diluted net (loss) income per share calculations because these stock-based
awards were anti-dilutive. For both 2024 and 2023, otherwise dilutive stock-based awards of 0.1 million have been
excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-
dilutive effect on net loss per diluted share.
v3.25.0.1
Revenue Recognition
 12 Months Ended
Dec. 28, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Deferred contract assets and deferred contract liabilities are included in the consolidated balance sheet as follows (in
thousands):
 
December 28,
2024
December 30,
2023
Deferred contract assets included in:
 
 
Other current assets
$30,154
$28,567
Other non-current assets
48,988
54,795
 
$79,142
$83,362
 
December 28,
2024
December 30,
2023
Deferred contract liabilities included in:
 
 
Other current liabilities
$38,129
$36,421
Other non-current liabilities
60,988
69,098
 
$99,117
$105,519
During the years ended December 28, 2024, December 30, 2023 and December 31, 2022 the Company recognized
revenue of $36 million, $36 million and $34 million, respectively, that was included in the deferred contract liability
balance at the beginning of the year.
Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of the
Company’s revenues for 2024, 2023 and 2022.
Net sales consisted of the following (in thousands):
 
2024
2023
2022
Retail stores
$1,474,250
$1,639,073
$1,823,617
Online, phone, chat and other
208,046
248,409
290,680
Total Company
$1,682,296
$1,887,482
$2,114,297
Obligation for Sales Returns
The activity in the sales returns liability account for 2024 and 2023 was as follows (in thousands):
 
2024
2023
Balance at beginning of year
$22,402
$25,594
Additions that reduce net sales
91,375
109,153
Deduction from reserves
(94,685)
(112,345)
Balance at end of period
$19,092
$22,402
v3.25.0.1
Profit Sharing and 401(k) Plan
 12 Months Ended
Dec. 28, 2024
Retirement Benefits [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 year, the Company makes a contribution equal to a
percentage of the employee’s contribution. During 2024, 2023 and 2022, the Company’s contributions, net of
forfeitures, were $7 million, $10 million and $10 million, respectively.
v3.25.0.1
Restructuring Costs
 12 Months Ended
Dec. 28, 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 $18.1 million of restructuring costs in 2024. 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 approximately $5 million to $7 million of
additional restructuring costs to be incurred during 2025, primarily due to lease contract termination costs.
During the years ended December 28, 2024 and December 30, 2023, the Company recognized $18.1 million and
$15.7 million, respectively, of restructuring costs, as follows (in thousands):
2024
2023
Cash restructuring costs:
Contract termination costs(1)
$7,027
$7,410
Severance and employee-related benefits
3,227
4,966
Professional fees and other
4,634
1,110
Total cash restructuring costs
14,888
13,486
Non-cash restructuring costs:
Asset impairments(2)
3,178
2,242
Total restructuring costs
$18,066
$15,728
____________________
(1)Primarily comprised of lease termination costs.
(2) Includes impairments of both lease right-of-use assets and 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):
2024
2023
Balance at December 30, 2023
$8,720
$—
Expenses
14,888
13,486
Cash payments
(20,267)
(4,766)
Balance at December 28, 2024
$3,341
$8,720
Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative
$33.8 million of restructuring costs, as follows (in thousands):
Cumulative
December 28, 2024
Cash restructuring costs:
Contract termination costs (1)
$14,437
Severance and employee-related benefits
8,193
Professional fees and other
5,744
Total cash restructuring costs
28,374
Non-cash restructuring costs:
Asset impairments (2)
5,420
Total restructuring costs
$33,794
____________________
(1)Primarily comprised of lease termination costs.
(2) Includes impairments of both lease right-of-use assets and property and equipment.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense (benefit) consisted of the following (in thousands):
2024
2023
2022
Current:
Federal
$6,904
$5,474
$15,518
State
1,256
3,106
5,174
8,160
8,580
20,692
Deferred:
Federal
(12,568)
(10,151)
(7,264)
State
(754)
(2,895)
(1,143)
(13,322)
(13,046)
(8,407)
Income tax (benefit) expense
$(5,162)
$(4,466)
$12,285
The following table provides a reconciliation between the statutory federal income tax rate and the Company’s effective
income tax rate:
2024
2023
2022
Statutory federal income tax
21.0%
21.0%
21.0%
State income taxes, net of federal benefit
0.8
(3.5)
6.4
R&D tax credits
9.0
14.1
(5.5)
Return to provision
6.2
6.1
0.8
Investment tax credit
—
1.1
—
Stock-based compensation
(9.5)
(6.2)
(1.2)
Non-deductible compensation
(2.6)
(5.7)
1.7
Non-deductible expenses
(2.1)
(2.8)
1.3
Changes in unrecognized tax benefits
(0.5)
(0.5)
(0.4)
Valuation allowance
(3.0)
—
—
Other
0.9
(1.0)
1.0
Effective income tax rate
20.2%
22.6%
25.1%
The Company files income tax returns with the U.S. federal government and various state jurisdictions. In the normal
course of business, the Company is subject to examination by federal and state taxing authorities. The Company is no
longer subject to federal income tax examinations for years prior to 2021 or state income tax examinations prior to 2020.
Deferred Income Taxes
The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):
2024
2023
Deferred tax assets:
Stock-based compensation
$7,090
$7,006
Operating lease liabilities
97,604
108,952
Warranty and returns liabilities
5,880
6,894
Net operating loss carryforwards and credits
2,327
1,738
Compensation and benefits
7,220
7,484
Research and development
19,017
18,079
Interest
9,503
3,747
Other
4,163
5,184
Total gross deferred tax assets
152,804
159,084
Valuation allowance
(806)
(48)
Total gross deferred tax assets after valuation allowance
151,998
159,036
Deferred tax liabilities:
Property and equipment
23,240
33,772
Operating lease right-of-use assets
89,276
99,351
Deferred revenue
2,516
3,065
Other
3,391
2,595
Total gross deferred tax liabilities
118,423
138,783
Net deferred tax assets
$33,575
$20,253
At December 28, 2024, the Company had net operating loss carryforwards for federal purposes of $0.4 million, which
will expire between 2025 and 2027.
The Company evaluates its deferred income taxes quarterly to determine if valuation allowances are required. As part of
this evaluation, the Company assess whether valuation allowances should be established for any deferred tax assets that
are not considered more likely than not to be realized, using all available evidence, both positive and negative. This
assessment considers, among other matters, the nature, frequency, and severity of historical losses, forecasts of future
profitability, taxable income in available carryback periods and tax planning strategies. In making such judgments,
significant weight is given to evidence that can be objectively verified. The Company has provided a $0.81 million
valuation allowance resulting primarily from its inability to utilize certain net operating losses and state R&D tax credits.
Unrecognized Tax Benefits
Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows (in thousands):
Federal and State Tax
2024
2023
2022
Beginning balance
$3,671
$3,645
$3,869
Increases related to current-year tax positions
639
753
910
Increases related to prior-year tax positions
51
40
252
Decreases related to prior-year tax positions
(15)
—
(328)
Lapse of statute of limitations
(688)
(601)
(1,058)
Settlements with taxing authorities
—
(166)
—
Ending balance
$3,658
$3,671
$3,645
At December 28, 2024 and December 30, 2023, the Company had $3.5 million and $3.4 million, respectively, of
unrecognized tax benefits, which if recognized, would affect its effective tax rate. The amount of unrecognized tax
benefits is not expected to change materially within the next 12 months.
v3.25.0.1
Segments
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Segments Segments
The Company’s chief operating decision maker (CODM), who is the Chief Executive Officer, assesses company-wide
performance and allocates resources based on consolidated financial information. Consequently, the Company views the
entire organization as one reportable segment and the strategic purpose of all operating activities is to support that one
segment.
The CODM manages the Company’s business activities as a single operating and reportable segment at the
consolidated level. The CODM uses net (loss) income, as reported on the Company’s consolidated statement of
operations, in evaluating performance of the Company in determining how to allocate resources of the Company as a
whole, including investing in the Company’s product development, sales and marketing campaigns, and employee
compensation. The measure of segment assets that is reviewed by the CODM is reported within the consolidated
balance sheet as consolidated total assets. The CODM also uses consolidated earnings or losses before interest, taxes,
depreciation and amortization (Adjusted EBITDA) as the basis for the CODM to evaluate the performance of the
Company.
The following is a summary of the significant expense categories and consolidated net (loss) income details provided to
the CODM (in thousands):
2024
2023
2022
Net Sales
$1,682,296
$1,887,482
$2,114,297
Less:
Cost of sales
(679,523)
(798,952)
(912,002)
Marketing expenses
(393,693)
(432,982)
(497,269)
Selling expenses
(372,931)
(414,460)
(422,359)
General and administrative
(148,736)
(145,949)
(153,266)
Research and development
(45,255)
(55,797)
(61,521)
Restructuring costs
(18,066)
(15,728)
—
Asset impairment charges
(1,220)
(673)
—
Interest expense
(48,368)
(42,694)
(18,985)
Income tax benefit (expense)
5,162
4,466
(12,285)
Net (loss) income
$(20,334)
$(15,287)
$36,610
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
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 January 14, 2025, purported customers served a putative class action complaint on behalf of themselves and a
putative class of California consumers against Sleep Number in the United States District Court for the Central District of
California alleging that Sleep Number’s beds are perpetually on sale in violation of California law. The Plaintiff seeks
injunctive relief, damages and attorneys fees.
Purported Class Action Complaint
On September 27, 2024, a purported customer served a putative class action complaint on behalf of themself and a
putative class of California consumers against Sleep Number in the United States District Court for the Eastern District of
California alleging that Sleep Number’s beds are perpetually on sale in violation of California law. The Plaintiff seeks
injunctive relief, damages and attorneys fees.
Consumer Credit Arrangements
The Company refers customers seeking extended financing to certain third-party financiers (Card Servicers). The Card
Servicers, if credit is granted, establish the interest rates, fees, and all other terms and conditions of the customer’s
account based on their evaluation of the creditworthiness of the customer. As the accounts are owned by the Card
Servicers, at no time are the accounts purchased or acquired from Sleep Number. The Company is not liable to the Card
Servicers for its customers’ credit defaults.
Commitments
As of December 28, 2024, the Company has $23 million of inventory purchase commitments. As part of the normal
course of business, there are a limited number of inventory supply contracts that contain penalty provisions for failure to
purchase contracted quantities. The Company does not currently expect any material payments under these provisions.
At December 28, 2024, the Company had entered into 7 lease commitments primarily for future retail store locations.
These lease commitments provide for total lease payments over the next 11 to 12 years, which if consummated based on
current cost estimates, would approximate $12 million over the initial lease term. The future lease payments for these
lease commitments have been excluded in the total operating lease payments in Note 7, Leases.
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Dec. 28, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
Description
2024
2023
2022
Allowances for credit losses
Balance at beginning of period
$1,437
$1,267
$924
Additions charged to costs and expenses
2,145
1,437
2,294
Deductions from reserves
(2,469)
(1,267)
(1,951)
Balance at end of period
$1,113
$1,437
$1,267
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net (loss) income $ (20,334) $ (15,287) $ 36,610
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 28, 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
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 28, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 28, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] Sleep Number uses a “defense in depth” approach for its cybersecurity risk management program leveraging the
National Institute of Standards and Technology (NIST) framework, which organizes cybersecurity risks into five
categories: identify, protect, detect, respond and recover. The Company regularly assesses the threat landscape for
cybersecurity risks, with a strategy based on prevention, detection and mitigation. The Company’s information
technology (IT) security team--led by the VP of Information Security, Infrastructure and Architecture and Chief Information
Officer--reviews cybersecurity risks on an ongoing basis. IT security team members who support the Company’s
information security program have relevant educational and industry experience. The VP of Information Security,
Infrastructure and Architecture, and their team, provide regular reports to senior management, the Audit Committee,
and other relevant teams on various cybersecurity threats, assessments and findings. The IT Security team has
established policies, standards, processes and practices for assessing, identifying, and managing material risks from
cybersecurity threats (including Generative AI associated risks), which are also identified and assessed through the
Company’s overall risk management program, including quarterly assessments of IT systems, cybersecurity and related
risks. The Company engages in an ongoing review of all cybersecurity events and threats to assess the materiality of
each event, if any.
The Company maintains controls and procedures that are designed to ensure prompt escalation of certain cybersecurity
incidents so that decisions regarding public disclosure and reporting of such incidents can be made by management and
the Audit Committee in a timely manner.
The Company assesses cybersecurity risks on an ongoing basis, including assessing and deploying technical safeguards
designed to protect its information systems from cybersecurity threats. The Company has established comprehensive
incident response and recovery plans, regularly tests and evaluates the effectiveness of those plans, and maintains
cybersecurity risk insurance.
The Company implements processes to identify, prioritize, assess, mitigate and remediate risks associated with third-
party service providers. It conducts security assessments of critical third-party providers before engagement and
maintains ongoing monitoring to ensure compliance with the Company’s cybersecurity standards. The monitoring
includes ongoing assessments by the IT security team. This approach is designed to mitigate risks related to data
breaches or other security incidents originating from third parties. The Company also contractually requires third parties
it engages to implement security programs commensurate with their risk.
The Company regularly reminds its team members and contractors of the importance of handling and protecting
customer and employee data. The Company provides all its team members with dedicated cybersecurity awareness
training annually and conducts monthly phishing simulation testing and other cybersecurity awareness campaigns (e.g.,
intranet articles, cybersecurity awareness month).
The Company engages with a range of external experts, including cybersecurity assessors, consultants, auditors, and
legal counsel, in evaluating and testing its cybersecurity risk management systems. This enables the Company to
leverage specialized knowledge, experience and insights, to help ensure its cybersecurity strategies and processes
remain current.
•The Company has cybersecurity operations and security engineering capabilities that provide comprehensive
monitoring to detect and respond to cyber threats and alerts and execute cyber incident response playbooks. This
includes a vulnerability management program which identifies and drives remediation of risks. The Company
employs a wide array of industry-leading security platforms and tools.
•The Company has retained data security and data privacy legal counsel whose practices focus on data breach
response, information security compliance, and compliance with the data privacy laws in the various jurisdictions in
which the Company operates.
•In addition, the Company engages specialized consultants and third-party managed service providers on a project-
specific basis to assist it with projects that will improve the Company’s IT infrastructure, strengthen its security
posture and cyber incident investigations, and improve its cyber readiness.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Sleep Number uses a “defense in depth” approach for its cybersecurity risk management program leveraging the
National Institute of Standards and Technology (NIST) framework, which organizes cybersecurity risks into five
categories: identify, protect, detect, respond and recover. The Company regularly assesses the threat landscape for
cybersecurity risks, with a strategy based on prevention, detection and mitigation. The Company’s information
technology (IT) security team--led by the VP of Information Security, Infrastructure and Architecture and Chief Information
Officer--reviews cybersecurity risks on an ongoing basis. IT security team members who support the Company’s
information security program have relevant educational and industry experience. The VP of Information Security,
Infrastructure and Architecture, and their team, provide regular reports to senior management, the Audit Committee,
and other relevant teams on various cybersecurity threats, assessments and findings. The IT Security team has
established policies, standards, processes and practices for assessing, identifying, and managing material risks from
cybersecurity threats (including Generative AI associated risks), which are also identified and assessed through the
Company’s overall risk management program, including quarterly assessments of IT systems, cybersecurity and related
risks. The Company engages in an ongoing review of all cybersecurity events and threats to assess the materiality of
each event, if any.
The Company maintains controls and procedures that are designed to ensure prompt escalation of certain cybersecurity
incidents so that decisions regarding public disclosure and reporting of such incidents can be made by management and
the Audit Committee in a timely manner.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] The Company has not experienced any material security incidents or data breaches as a result of a compromise of its
information systems and is not aware of any cybersecurity incidents that have had a material impact, or are reasonably
likely to materially effect, its business strategy, operating results, cash flows and financial condition.
Cybersecurity Risk Board of Directors Oversight [Text Block] At the Board level, the Audit Committee is formally tasked with assisting the full Board in overseeing information security
systems, including cybersecurity, and reporting to the Board with respect to significant and material developments or
proposed changes to the Company’s cybersecurity framework. The Audit Committee receives regular reports from the
CIO and the Vice President of Information Security, Infrastructure and Architecture about the prevention, detection,
mitigation, and remediation of cybersecurity incidents, including material security risks and information security threats
and risks. The Audit Committee also receives regular updates from management on cybersecurity risk resulting from risk
assessments, progress of risk reduction initiatives, and relevant internal and industry cybersecurity incidents and
emerging threats.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Company assesses cybersecurity risks on an ongoing basis, including assessing and deploying technical safeguards
designed to protect its information systems from cybersecurity threats. The Company has established comprehensive
incident response and recovery plans, regularly tests and evaluates the effectiveness of those plans, and maintains
cybersecurity risk insurance.
The Company implements processes to identify, prioritize, assess, mitigate and remediate risks associated with third-
party service providers. It conducts security assessments of critical third-party providers before engagement and
maintains ongoing monitoring to ensure compliance with the Company’s cybersecurity standards. The monitoring
includes ongoing assessments by the IT security team. This approach is designed to mitigate risks related to data
breaches or other security incidents originating from third parties. The Company also contractually requires third parties
it engages to implement security programs commensurate with their risk.
The Company regularly reminds its team members and contractors of the importance of handling and protecting
customer and employee data. The Company provides all its team members with dedicated cybersecurity awareness
training annually and conducts monthly phishing simulation testing and other cybersecurity awareness campaigns (e.g.,
intranet articles, cybersecurity awareness month).
The Company engages with a range of external experts, including cybersecurity assessors, consultants, auditors, and
legal counsel, in evaluating and testing its cybersecurity risk management systems. This enables the Company to
leverage specialized knowledge, experience and insights, to help ensure its cybersecurity strategies and processes
remain current.
•The Company has cybersecurity operations and security engineering capabilities that provide comprehensive
monitoring to detect and respond to cyber threats and alerts and execute cyber incident response playbooks. This
includes a vulnerability management program which identifies and drives remediation of risks. The Company
employs a wide array of industry-leading security platforms and tools.
•The Company has retained data security and data privacy legal counsel whose practices focus on data breach
response, information security compliance, and compliance with the data privacy laws in the various jurisdictions in
which the Company operates.
•In addition, the Company engages specialized consultants and third-party managed service providers on a project-
specific basis to assist it with projects that will improve the Company’s IT infrastructure, strengthen its security
posture and cyber incident investigations, and improve its cyber readiness.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Chief Information Officer (CIO) has primary operational responsibility for the Company’s cybersecurity function. The
CIO has served in various roles in information technology and information security for over 28 years with nine years’
experience specifically in cybersecurity. The CIO, together with the Vice President of Information Security, Infrastructure
and Architecture – who has 20 years of cybersecurity experience and has maintained a Certified Information Systems
Security Professional (CISSP) certification since 2008 – and the Chief Legal and Risk Officer have primary responsibility for
assessing and managing material cybersecurity risks. This group, and their supporting teams, meets quarterly to review
security performance metrics, identify security risks, and assess the status of approved security enhancements. This
group also considers and makes recommendations on security policies and procedures, security service requirements,
and risk mitigation strategies.
Cybersecurity Risk Role of Management [Text Block] The Chief Information Officer (CIO) has primary operational responsibility for the Company’s cybersecurity function. The
CIO has served in various roles in information technology and information security for over 28 years with nine years’
experience specifically in cybersecurity. The CIO, together with the Vice President of Information Security, Infrastructure
and Architecture – who has 20 years of cybersecurity experience and has maintained a Certified Information Systems
Security Professional (CISSP) certification since 2008 – and the Chief Legal and Risk Officer have primary responsibility for
assessing and managing material cybersecurity risks. This group, and their supporting teams, meets quarterly to review
security performance metrics, identify security risks, and assess the status of approved security enhancements. This
group also considers and makes recommendations on security policies and procedures, security service requirements,
and risk mitigation strategies.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Chief Information Officer (CIO) has primary operational responsibility for the Company’s cybersecurity function. The
CIO has served in various roles in information technology and information security for over 28 years with nine years’
experience specifically in cybersecurity. The CIO, together with the Vice President of Information Security, Infrastructure
and Architecture – who has 20 years of cybersecurity experience and has maintained a Certified Information Systems
Security Professional (CISSP) certification since 2008 – and the Chief Legal and Risk Officer have primary responsibility for
assessing and managing material cybersecurity risks. This group, and their supporting teams, meets quarterly to review
security performance metrics, identify security risks, and assess the status of approved security enhancements. This
group also considers and makes recommendations on security policies and procedures, security service requirements,
and risk mitigation strategies.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] At the Board level, the Audit Committee is formally tasked with assisting the full Board in overseeing information security
systems, including cybersecurity, and reporting to the Board with respect to significant and material developments or
proposed changes to the Company’s cybersecurity framework. The Audit Committee receives regular reports from the
CIO and the Vice President of Information Security, Infrastructure and Architecture about the prevention, detection,
mitigation, and remediation of cybersecurity incidents, including material security risks and information security threats
and risks. The Audit Committee also receives regular updates from management on cybersecurity risk resulting from risk
assessments, progress of risk reduction initiatives, and relevant internal and industry cybersecurity incidents and
emerging threats.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Business and Basis of Presentation Business & Basis of Presentation
Sleep Number Corporation and its 100%-owned subsidiaries (Sleep Number or the Company) have a vertically
integrated business model and are the exclusive designer, manufacturer, marketer, retailer and servicer of Sleep Number
beds which allows it to offer consumers high-quality, individualized sleep solutions and services. Sleep Number also
offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products.
Sleep Number generates revenue by marketing its innovations directly to new and existing customers, and selling
products through its Stores, Online, Phone, Chat (Total Retail) and Other.
The consolidated financial statements include the accounts of Sleep Number Corporation and its 100%-owned
subsidiaries. All intra-entity balances and transactions have been eliminated in consolidation.
Fiscal Year Fiscal Year
The Company’s fiscal year ends on the Saturday closest to December 31. Fiscal years and their respective fiscal year
ends were as follows: fiscal 2024 ended December 28, 2024; fiscal 2023 ended December 30, 2023; and fiscal 2022
ended December 31, 2022. Fiscal 2024, 2023 and 2022 each had 52 weeks.
Use of Estimates in the Preparation of Financial Statements Use of Estimates in the Preparation of Financial Statements
The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles
(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 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.
Cash and Cash Equivalents Cash and Cash Equivalents
Cash and cash equivalents include highly-liquid investments with original maturities of three months or less. The carrying
value of these investments approximates fair value due to their short-term maturity. The Company’s banking
arrangements allow it to fund outstanding checks when presented to the financial institution for payment, resulting in
book overdrafts. Book overdrafts are included in accounts payable in the consolidated balance sheet and in net increase
(decrease) in short-term borrowings in the financing activities section of the Company’s consolidated statement of cash
flows.
Accounts Receivable Accounts Receivable
Accounts receivable are recorded net of an allowance for expected credit losses and consist primarily of receivables from
third-party financiers for customer credit purchases. The allowance is recognized in an amount equal to anticipated
future write-offs. The Company estimates future write-offs based on delinquencies, aging trends, industry risk trends, its
historical experience and current trends. Account balances are charged off against the allowance when the Company
believes it is probable the receivable will not be recovered.
Inventories Inventories
Inventories include materials, labor and overhead and are stated at the lower of cost or net realizable value. Cost is
determined by the first-in, first-out method. The Company reviews inventory quantities on hand and records reserves for
obsolescence based on historical selling prices, current market conditions and forecasted product demand, to reduce
inventory to net realizable value.
Property and Equipment Property and Equipment
Property and equipment, carried at cost, is depreciated using the straight-line method over the estimated useful lives of
the assets. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts with
any resulting gain or loss included in net (loss) income in the consolidated statement of operations. Maintenance and
repairs are charged to expense as incurred. Major renewals and betterments that extend useful life are capitalized.
Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the contractual
term of the lease, with consideration of lease renewal options if renewal appears probable.
Estimated useful lives of the Company’s property and equipment by major asset category are as follows:
Leasehold improvements
5 to 15 years
Furniture and equipment
3 to 15 years
Production machinery
3 to 7 years
Computer equipment and software
3 to 12 years
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill is the difference between the purchase price of a company and the fair market value of the acquired company’s
net identifiable assets. The Company’s intangible assets include developed technologies and trade names/trademarks.
Definite-lived intangible assets are being amortized using the straight-line method over their estimated lives, ranging
from 8-10 years.
Asset Impairment Charges Asset Impairment Charges
Long-lived Assets and Definite-lived Intangible Assets
The Company reviews its long-lived assets and definite-lived intangible assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When evaluating long-
lived assets for potential impairment, the Company first compares the carrying value of the asset to the estimated future
cash flows (undiscounted and without interest charges plus proceeds expected from disposition, if any). If the estimated
undiscounted cash flows are less than the carrying value of the asset, the Company calculates an impairment loss. The
impairment loss calculation compares the carrying value of the asset to the asset’s estimated fair value. When the
Company recognizes an impairment loss, the carrying amount of the asset is reduced to estimated fair value based on
discounted cash flows, quoted market prices or other valuation techniques. Assets to be disposed of are reported at the
lower of the carrying amount of the asset or fair value less costs to sell. The Company reviews retail store assets for
potential impairment based on historical cash flows, lease termination provisions and expected future retail store
operating results. If the Company recognizes an impairment loss for a depreciable long-lived asset, the adjusted carrying
amount of the asset becomes its new cost basis and will be depreciated (amortized) over the remaining useful life of that
asset.
Goodwill and Indefinite-lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment annually, or when there
are indicators of impairment, using a fair value approach. The goodwill impairment test involves a comparison of the fair
value of a reporting unit with its carrying value. Fair value is determined using a market-based approach utilizing widely
accepted valuation techniques, including quoted market prices and the Company’s market capitalization. The Company
has only one reporting unit, which has a negative carrying value. The reporting unit had a goodwill balance of $64 million
at December 28, 2024 and December 30, 2023. Indefinite-lived intangible assets are assessed for impairment by
comparing the carrying value of an asset with its fair value. If the carrying value exceeds fair value, an impairment loss is
recognized in an amount equal to the excess.
Other Investments Other Investments
The Company had an investment in non-marketable equity securities of $1.2 million at both December 28, 2024 and
December 30, 2023. This investment was made in a strategic product-development partner and is included in other non-
current assets in the consolidated balance sheet. Non-marketable equity securities are equity securities without readily
determinable fair value that are measured and recorded using a measurement alternative that measures the securities at
cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes.
Warranty Liabilities Warranty Liabilities
The Company provides a limited warranty on most of the products it sells. The estimated warranty costs, which are
expensed at the time of sale and included in cost of sales, are based on historical trends and warranty claim rates
incurred by the Company and are adjusted for any current trends as appropriate. The majority of the Company’s
warranty claims are incurred within the first year. The Company’s warranty liability contains uncertainties because its
warranty obligations cover an extended period of time and require management to make estimates for claim rates and
the projected cost of materials and freight associated with sending replacement parts to customers. The Company
regularly assesses and adjusts the estimate of accrued warranty claims by updating claims rates for actual trends and
projected claim costs. The warranty liabilities are included in other current liabilities and other non-current liabilities in
the consolidated balance sheet.
The Company classifies as non-current those estimated warranty costs expected to be paid out in greater than one year.
Fair Value Measurements Fair Value Measurements
Fair value measurements are reported in one of three levels based on the lowest level of significant input used:
•Level 1 – observable inputs such as quoted prices in active markets;
•Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
•Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop
its own assumptions.
The Company generally estimates fair value of long-lived assets, including its retail stores, using the income approach,
which the Company based on estimated future cash flows (discounted and with interest charges). The inputs used to
determine fair value relate primarily to future assumptions regarding sales volumes, gross profit rates, retail store
operating expenses and applicable probability weightings regarding future alternative uses. These inputs are
categorized as Level 3 inputs under the fair value measurements guidance. The inputs used represent management’s
assumptions about what information market participants would use in pricing the assets and are based upon the best
information available at the balance sheet date.
Shareholders’ Deficit Shareholders’ Deficit
Dividends
The Company is not restricted from paying cash dividends under the Credit Agreement so long as it is not in default
under the Credit Agreement, the Company’s leverage ratio (as defined in the Credit Agreement) after giving effect to
such restricted payments (as defined in the Credit Agreement) would not exceed 3.00:1.00 and no default or event of
default (as defined in the Credit Agreement) would result therefrom. At December 28, 2024, the Company exceeded the
3.00:1.00 leverage ratio. However, Sleep Number has not historically paid, and has no current plans to pay, cash
dividends on the Company’s common stock.
Share Repurchases
At December 28, 2024, there was $348 million remaining authorization under the $600 million board-approved share
repurchase program. There is no expiration date governing the period over which the Company can repurchase shares.
Any repurchased shares are constructively retired and returned to an unissued status. The cost of stock repurchases is
first charged to additional paid-in-capital. Once additional paid-in capital is reduced to zero, any additional amounts are
charged to accumulated deficit.
Revenue Recognition Revenue Recognition
The Company recognizes revenue when control of the promised goods or services is transferred to its customers in an
amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue
recognized excludes sales taxes. Amounts billed to customers for delivery and setup are included in net sales. For most
products, the Company receives payment before or promptly after the products or services are delivered to the
customer.
The Company accepts sales returns of most products during a 100-night trial period. Accrued sales returns represent a
refund liability for the amount of consideration that the Company does not expect to be entitled to because it will be
refunded to customers. The refund liability estimate is based on historical return rates and is adjusted for any current
trends as appropriate. Each reporting period, the Company remeasures the liability to reflect changes in the estimate,
with a corresponding adjustment to net sales.
Sleep Number beds sold with SleepIQ technology contain multiple performance obligations including the bed, and
SleepIQ hardware and software. The Company analyzes its multiple performance obligations to determine whether they
are distinct and can be separated or whether they must be accounted for as a single performance obligation. The
Company determined that beds sold with the SleepIQ technology have two performance obligations consisting of: (i) the
bed; and (ii) SleepIQ hardware and software. SleepIQ hardware and software are not separable as the hardware and
related software are not sold separately and the software is integral to the hardware’s functionality. The Company
determined the transaction price for multiple performance obligations based on their relative standalone selling prices.
The performance obligation related to the bed is satisfied at a point in time. The performance obligation related to
SleepIQ technology is satisfied over time based on the ongoing access and usage by the customer of software essential
to the functionality of SleepIQ technology. The deferred revenue and costs related to SleepIQ technology are
recognized on a straight-line basis over the estimated period of benefit to the customer of 4.5 to 5.0 years because its
inputs are generally expended evenly throughout the performance period.
Cost of Sales, Sales and Marketing, General and Administrative (G&A) and Research & Development (R&D) Expenses Cost of Sales, Sales and Marketing, General and Administrative (G&A) and Research & Development (R&D) Expenses
The following tables summarize the primary costs classified in each major expense category (the classification of which
may vary within the Company’s industry):
Cost of Sales
Sales & Marketing
•
Costs associated with purchasing, manufacturing, shipping,
handling and delivering the Company’s products to its retail
stores and customers, including payroll and benefits;
•
Advertising, marketing and media production;
•
Marketing and selling materials such as brochures, videos,
websites, customer mailings and in-store signage;
•
Physical inventory losses, scrap and obsolescence;
•
Payroll and benefits for sales and customer service staff;
•
Related occupancy and depreciation expenses;
•
Store occupancy costs;
•
Costs associated with returns and exchanges; and
•
Store depreciation expense;
•
Estimated costs to service customer warranty claims.
•
Credit card processing fees; and
•
Promotional financing costs.
G&A
R&D(1)
•
Payroll and benefit costs for corporate employees, including
information technology, legal, human resources, finance, sales
and marketing administration, investor relations and risk
management;
•
Internal labor and benefits related to research and
development activities;
•
Outside consulting services related to research and
development activities; and
•
Occupancy costs of corporate facilities;
•
Testing equipment related to research and development
•
Depreciation related to corporate assets;
___________________________
(1) Costs incurred in connection with R&D are charged to expense as incurred.
•
Information hardware, software and maintenance;
•
Insurance;
•
Investor relations costs; and
•
 Other overhead costs.
Leases Leases
The Company determines if an arrangement is a lease at inception. Right-of-use (ROU) assets and operating lease
liabilities are recognized at the lease commencement date based on the estimated present value of future lease
payments over the lease term. The Company elected the option to not separate lease and non-lease components for all
of its leases. Most of the Company’s leases do not provide an implicit interest rate nor is the rate available to it from its
lessors. As an alternative, the Company uses its estimated incremental borrowing rate, which is derived from information
available at the lease commencement date, including publicly available data, in determining the present value of lease
payments. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet as an
ROU asset or operating lease liability. The Company recognizes operating lease costs for these short-term leases,
primarily small equipment leases, on a straight-line basis over the lease term. At December 28, 2024, the Company’s
finance lease ROU assets and associated lease liabilities were not significant.
See Note 7, Leases, for further information regarding the Company’s operating leases.
Pre-Opening Costs Pre-opening Costs
Costs associated with the start-up and promotion of new retail store openings are expensed as incurred.
Advertising Costs Advertising Costs
The Company incurs advertising costs associated with print, digital and broadcast advertisements. Advertising costs are
charged to expense when the ad first runs.
Insurance Insurance
The Company is self-insured for certain losses related to health and workers’ compensation claims, although the
Company obtains third-party insurance coverage to limit exposure to these claims. The Company estimates its self-
insured liabilities using a number of factors including historical claims experience and analysis of incurred but not
reported claims.
Software Capitalization Software Capitalization
For software developed or obtained for internal use, the Company capitalizes direct external costs associated with
developing or obtaining internal-use software. In addition, the Company capitalizes certain payroll and payroll-related
costs for employees who are directly involved with the development of such applications. Capitalized costs related to
internal-use software under development are treated as construction-in-progress until the program, feature or
functionality is ready for its intended use, at which time depreciation commences. The Company expenses any data
conversion or training costs as incurred. Capitalized software costs are included in property and equipment, net in the
consolidated balance sheet.
The Company capitalizes costs incurred with the implementation of a cloud computing arrangement that is a service
contract, consistent with its policy for software developed or obtained for internal use. The capitalized implementation
costs of cloud computing arrangements are expensed over the term of the cloud computing arrangement in the same
line item in the statement of operations as the associated hosting fees. Capitalized costs incurred with the
implementation of a cloud computing arrangement are included in prepaid expenses and other non-current assets in the
Company’s consolidated balance sheet, and in operating cash flows in its consolidated statement of cash flows.
Stock-Based Compensation Stock-based Compensation
The Company compensates officers, directors and key employees with stock-based compensation under stock plans
approved by its shareholders and administered under the supervision of the Company’s Board of Directors (Board). At
December 28, 2024, a total of 2.2 million shares were available for future grant. These plans include non-qualified stock
options and stock awards.
The Company records stock-based compensation expense based on the award’s fair value at the grant date and the
awards that are expected to vest. The Company recognizes stock-based compensation expense over the period during
which an employee is required to provide services in exchange for the award. The Company reduces compensation
expense by estimated forfeitures. Forfeitures are estimated using historical experience and projected employee
turnover. The Company includes, as part of cash flows from operating activities, the benefit of tax deductions in excess
of recognized stock-based compensation expense. In addition, excess tax benefits or deficiencies are recorded as
discrete adjustments to income tax expense.
Stock Options
Stock option awards are granted at exercise prices equal to the closing price of the Company’s stock on the grant date.
Generally, options vest proportionally over three years and expire after 10 years. Compensation expense is recognized
ratably over the vesting period.
The Company determines the fair value of stock options granted and the resulting compensation expense at the date-of-
grant using the Black-Scholes-Merton option-pricing model. Descriptions of significant assumptions used to estimate the
expected volatility, risk-free interest rate and expected term are as follows:
Expected Volatility – expected volatility was determined based on implied volatility of the Company’s traded options
and historical volatility of the Company’s stock price.
Risk-Free Interest Rate – the risk-free interest rate was based on the implied yield available on U.S. Treasury zero-
coupon issues at the date of grant with a term equal to the expected term.
Expected Term – expected term represents the period that the Company’s stock-based awards are expected to be
outstanding and was determined based on historical experience and anticipated future exercise patterns, giving
consideration to the contractual terms of unexercised stock-based awards.
Stock Awards
The Company issues stock awards to certain employees in conjunction with its stock-based compensation plan. The
stock awards generally vest over three years based on continued employment (time-based). Compensation expense
related to stock awards, except for stock awards with a market condition, is determined on the grant date based on the
publicly quoted closing price of the Company’s common stock and is charged to earnings on a straight-line basis over
the vesting period. Stock awards with a market condition are valued using a Monte Carlo simulation model. The
significant assumptions used to estimate the expected volatility and risk-free interest rate are similar to those described
above in Stock Options.
Certain time-based stock awards have a performance condition (performance-based). The final number of shares earned
for performance-based stock awards and the related compensation expense is adjusted up or down to the extent the
performance target is met. The actual number of shares that will ultimately be awarded range from 0% - 200% of the
targeted amount for the 2024, 2023 and 2022 awards. The Company evaluates the likelihood of meeting the
performance targets at each reporting period and adjust compensation expense, on a cumulative basis, based on the
expected achievement of each of the performance targets. For performance-based stock awards granted in 2024, 2023
and 2022, the performance targets are based on growth in net sales and in operating profit, and the performance
periods are fiscal 2024 through 2026, 2023 through 2025 and fiscal 2022 through 2024, respectively.
Income Taxes Income Taxes
The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax
bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in
the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax
rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A
valuation allowance is established for any portion of deferred tax assets that are not considered more likely than not to
be realized. The Company evaluates all available positive and negative evidence, including its forecast of future taxable
income, to assess the need for a valuation allowance on its deferred tax assets.
The Company records a liability for unrecognized tax benefits from uncertain tax positions taken, or expected to be
taken, in the Company’s tax returns. The Company follows a two-step approach to recognizing and measuring uncertain
tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence
indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or
litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50%
likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating
its tax positions and tax benefits, which may require periodic adjustments, and may not accurately forecast actual
outcomes.
The Company classifies net interest and penalties related to income taxes as a component of income tax expense in its
consolidated statement of operations.
Net (Loss) Income Per Share Net (Loss) Income Per Share
The Company calculates basic net (loss) income per share by dividing net (loss) income by the weighted-average number
of common shares outstanding during the period. It calculates diluted net (loss) income per share based on the
weighted-average number of common shares outstanding adjusted by the number of potentially dilutive common shares
as determined by the treasury stock method. Potentially dilutive shares consist of stock options and stock awards.
Sources of Supply Sources of Supply
The Company currently obtains materials and components used to produce its beds from outside sources. As a result,
the Company is dependent upon suppliers that in some instances, are its sole source of supply, or supply the vast
majority of the particular component or material. The Company continuously evaluates opportunities to dual-source key
components and materials. The failure of one or more of the Company’s suppliers to provide it with materials or
components on a timely basis could significantly impact the consolidated results of operations and net (loss) income per
share. While the Company believes that these materials and components, or suitable replacements, could be obtained
from other sources in the event of a disruption or loss of supply, it may not be able to find alternative sources of supply
or alternative sources of supply on comparable terms and an unexpected loss of supply over a short period of time may
not allow the Company to replace these sources in the ordinary course of business.
Recently Adopted and Recently Issued Accounting Pronouncements Recently Adopted and Recently Issued Accounting Pronouncements
Accounting Pronouncements Recently Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued guidance within Accounting Standards
Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU
requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments
in this ASU and all existing disclosures in Topic 280. The Company has determined that its current business and
operations consist of a single business segment and a single reporting unit.
The amendments in this ASU are intended to improve segment disclosure requirements, primarily through enhanced
disclosures about significant segment expenses. The key amendments included in this ASU:
•Require disclosure on an annual and interim basis, of significant segment expenses that are regularly provided to the
chief operating decision maker (CODM) and are included within each reported measure of segment profit and loss.
•Require disclosure on an annual and interim basis, an amount for other segment items (defined in this ASU) and a
description of its composition.
•Clarify that if the CODM uses more than one measure of the segment’s profit or loss in assessing performance, one
or more of those additional measures may be reported.
•Require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported
measure(s) of segment profit or loss in assessing performance.
This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning
after December 15, 2024, with early adoption permitted. This guidance is required to be adopted by the Company
beginning with the annual period of 2024. The amendments should be applied retrospectively to all prior periods
presented in the consolidated financial statements. The Company adopted the new standard in the fourth quarter of
2024. The new required disclosures are included in Note 13, "Segments."
Accounting Pronouncements Issued But Not Yet Effective
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements in Income Tax Disclosures"
to enhance the transparency and decision usefulness of income tax disclosures. This amendment requires public
companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling
items that meet a quantitative threshold. Additionally, under the amendment, entities are required to disclose the
amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material
individual jurisdictions. Finally, the amendment requires entities to disclose income from continuing operations before
income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations
disaggregated by federal, state and foreign. The new rules are effective for annual periods beginning after December
15, 2024. The adoption of this standard is not expected to have a material impact on the Company’s consolidated
financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense
Disaggregation Disclosures (Subtopic 220-40)", which requires public business entities to disclose in the notes to the
financial statements more detailed information about the types of expenses included in certain expense captions in the
consolidated financial statements, including purchases of inventory, employee compensation, and depreciation and
amortization. The amendments are effective for the Company beginning with the 2027 annual period and in interim
periods beginning in 2028. Early adoption is permitted. The ASU may be adopted prospectively or retrospectively. The
Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related
disclosures.
Currently, management does not believe that any other recently issued, but not yet effective accounting
pronouncements, if currently adopted, would have a material impact on the Company’s consolidated financial
statements.
v3.25.0.1
Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Estimated Useful Lives of Property and Equipment Estimated useful lives of the Company’s property and equipment by major asset category are as follows:
Leasehold improvements
5 to 15 years
Furniture and equipment
3 to 15 years
Production machinery
3 to 7 years
Computer equipment and software
3 to 12 years
Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands):
 
2024
2023
2022
Balance at beginning of period
$8,503
$8,997
$10,069
Additions charged to costs and expenses for current-year sales
13,821
15,939
16,694
Deductions from reserves
(14,657)
(16,438)
(17,157)
Change in liabilities for pre-existing warranties during the current
year, including expirations
(720)
5
(609)
Balance at end of period
$6,947
$8,503
$8,997
v3.25.0.1
Inventories (Tables)
 12 Months Ended
Dec. 28, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories Inventories consisted of the following (in thousands):
 
December 28,
2024
December 30,
2023
Raw Materials
$11,434
$9,092
Work in Progress
130
92
Finished goods
91,588
106,249
$103,152
$115,433
Schedule of Finished Goods Inventories Finished goods inventories consisted of the following (in thousands):
 
December 28,
2024
December 30,
2023
Finished beds, including deliveries in-transit to those customers who have utilized
home delivery services
$34,725
$39,235
Finished components that were ready for assembly for the completion of beds
39,634
46,179
Retail accessories
17,229
20,835
 
$91,588
$106,249
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 28, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property and equipment consisted of the following (in thousands):
 
December 28,
2024
December 30,
2023
Leasehold improvements
$136,127
$143,006
Furniture and equipment
153,106
158,309
Production machinery, computer equipment and software
300,486
306,972
Construction in progress
3,310
6,552
Less: Accumulated depreciation and amortization
(463,455)
(435,336)
$129,574
$179,503
v3.25.0.1
Goodwill and Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Definite-Lived Intangible Assets Definite-lived Intangible Assets
December 28, 2024
December 30, 2023
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Developed technologies
$18,851
$18,851
$18,851
$18,851
Patents
1,972
1,002
1,972
780
$20,823
$19,853
$20,823
$19,631
Schedule of Annual Amortization for Definite-Lived Intangible Assets Annual amortization for definite-lived intangible assets for subsequent years are as follows (in thousands):
2025
$226
2026
222
2027
222
2028
155
2029
99
Thereafter
46
Total future amortization for definite-lived intangible assets
$970
v3.25.0.1
Credit Agreement (Tables)
 12 Months Ended
Dec. 28, 2024
Debt Disclosure [Abstract]  
Schedule of Borrowings Under Credit Facility The following tables summarizes the Company’s borrowings under the credit facility ($ in thousands):
 
December 28,
2024
December 30,
2023
Outstanding borrowings
$546,600
$539,500
Outstanding letters of credit
$7,147
$7,147
Additional borrowing capacity
$123,753
$138,353
Weighted-average interest rate
7.6%
8.5%
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Schedule of Operating Lease Costs Lease costs were as follows (in thousands):
2024
2023
2022
Operating lease costs(1)
$107,049
$113,510
$109,766
Variable lease costs
$43
$278
$877
____________________
(1)Includes short-term lease costs which are not significant.
Schedule of Maturities of Operating Lease Liabilities The maturities of operating lease liabilities as of December 28, 2024, were as follows(1) (in thousands):
2025
$104,800
2026
94,005
2027
77,310
2028
64,734
2029
44,711
Thereafter
76,495
Total operating lease payments(2)
462,055
Less: Interest
72,547
Present value of operating lease liabilities
$389,508
        ___________________
(1)Total operating lease payments exclude $12 million of legally binding minimum lease payments for leases signed but not yet commenced.
(2)Includes the current portion of $82 million for operating lease liabilities.
Schedule of Other Information Related Operating Leases Other information related to operating leases was as follows:
 
December 28,
2024
December 30,
2023
Weighted-average remaining lease term (years)
5.4
5.9
Weighted-average discount rate
6.6%
6.5%
(in thousands)
2024
2023
2022
Cash paid for amounts included in present value of operating
lease liabilities
$108,116
$108,294
$99,819
Right-of-use assets obtained in exchange for operating lease
liabilities
$57,712
$69,396
$82,117
v3.25.0.1
Shareholders' Deficit (Tables)
 12 Months Ended
Dec. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands):
 
2024
2023
2022
Stock awards(1)
$8,157
$11,053
$9,471
Stock options
3,287
3,802
3,752
Total stock-based compensation expense(1)
11,444
14,855
13,223
Income tax benefit
2,747
3,476
3,319
Total stock-based compensation expense, net of tax
$8,697
$11,379
$9,904
____________________
(1)Changes in annual stock-based compensation expense includes the cumulative impact of the change in the expected achievements of certain
performance targets.
Summary of Stock Option Activity A summary of the Company’s stock option activity was as follows (in thousands, except per share amounts and years):
 
Stock
Options
Weighted-
Average
Exercise
Price per
Share
Weighted-
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value(1)
Outstanding at December 30, 2023
1,046
$40.80
6.2
$—
Granted
—
—
Exercised
—
—
Canceled/Forfeited
(104)
40.38
Outstanding at December 28, 2024
942
$40.85
5.6
$—
Exercisable at December 28, 2024
736
$42.90
4.9
$—
Vested and expected to vest at December 28, 2024
926
$40.95
5.6
$—
____________________
(1)Aggregate intrinsic value includes only those options where the current share price is equal to or greater than the share price on the date of grant.
Other Information Pertaining to Options Other information pertaining to options was as follows (in thousands, except per share amounts):
 
2024
2023
2022
Weighted-average grant date fair value of stock options granted
$—
$16.41
$30.22
Total intrinsic value (at exercise) of stock options exercised
$—
$298
$1,298
Assumptions Used to Calculate Fair Value of Options Granted Using Black-Scholes-Merton Option-Pricing Model The assumptions used to calculate the fair value of options granted using the Black-Scholes-Merton option-pricing
model were as follows. There were no grants of new stock option awards for the fiscal year ended December 28, 2024.
Valuation Assumptions
2024
2023
2022
Expected dividend yield
—%
0.0%
0.0%
Expected volatility
—%
64%
57%
Risk-free interest rate
—%
3.8%
2.2%
Expected term (years)
—
5.7
5.3
Stock Award Activity Stock award activity was as follows (in thousands, except per share amounts):
Time-
Based
Stock
Awards
Weighted-
Average
Grant Date
Fair Value
Performance-
Based
Stock Awards
Weighted-
Average
Grant Date
Fair Value
Outstanding at December 30, 2023
397
$37.38
699
$51.74
Granted
674
13.70
211
13.53
Vested
(181)
39.62
(45)
127.50
Canceled/Forfeited
(77)
23.05
(88)
99.19
Outstanding at December 28, 2024
813
$18.60
777
$31.74
Schedule of Repurchase of Common Stock Repurchases of the Company’s common stock were as follows (in thousands):
 
2024
2023
2022
Amount repurchased under Board-approved share repurchase
program
$—
$—
$54,868
Amount repurchased in connection with the vesting of employee
restricted stock grants
768
3,747
9,320
Total amount repurchased (based on trade dates)
$768
$3,747
$64,188
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):
 
2024
2023
2022
Net (loss) income
$(20,334)
$(15,287)
$36,610
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding
22,606
22,429
22,396
Dilutive effect of stock-based awards
—
—
456
Diluted weighted-average shares outstanding
22,606
22,429
22,852
Net (loss) income per share – basic
$(0.90)
$(0.68)
$1.63
Net (loss) income per share – diluted
$(0.90)
$(0.68)
$1.60
v3.25.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 28, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Deferred Contract Assets and Deferred Contract Liabilities Deferred contract assets and deferred contract liabilities are included in the consolidated balance sheet as follows (in
thousands):
 
December 28,
2024
December 30,
2023
Deferred contract assets included in:
 
 
Other current assets
$30,154
$28,567
Other non-current assets
48,988
54,795
 
$79,142
$83,362
 
December 28,
2024
December 30,
2023
Deferred contract liabilities included in:
 
 
Other current liabilities
$38,129
$36,421
Other non-current liabilities
60,988
69,098
 
$99,117
$105,519
Schedule of Net Sales Net sales consisted of the following (in thousands):
 
2024
2023
2022
Retail stores
$1,474,250
$1,639,073
$1,823,617
Online, phone, chat and other
208,046
248,409
290,680
Total Company
$1,682,296
$1,887,482
$2,114,297
Schedule of Sales Return Liability The activity in the sales returns liability account for 2024 and 2023 was as follows (in thousands):
 
2024
2023
Balance at beginning of year
$22,402
$25,594
Additions that reduce net sales
91,375
109,153
Deduction from reserves
(94,685)
(112,345)
Balance at end of period
$19,092
$22,402
v3.25.0.1
Restructuring Costs (Tables)
 12 Months Ended
Dec. 28, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs During the years ended December 28, 2024 and December 30, 2023, the Company recognized $18.1 million and
$15.7 million, respectively, of restructuring costs, as follows (in thousands):
2024
2023
Cash restructuring costs:
Contract termination costs(1)
$7,027
$7,410
Severance and employee-related benefits
3,227
4,966
Professional fees and other
4,634
1,110
Total cash restructuring costs
14,888
13,486
Non-cash restructuring costs:
Asset impairments(2)
3,178
2,242
Total restructuring costs
$18,066
$15,728
____________________
(1)Primarily comprised of lease termination costs.
(2) Includes impairments of both lease right-of-use assets and 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):
2024
2023
Balance at December 30, 2023
$8,720
$—
Expenses
14,888
13,486
Cash payments
(20,267)
(4,766)
Balance at December 28, 2024
$3,341
$8,720
Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative
$33.8 million of restructuring costs, as follows (in thousands):
Cumulative
December 28, 2024
Cash restructuring costs:
Contract termination costs (1)
$14,437
Severance and employee-related benefits
8,193
Professional fees and other
5,744
Total cash restructuring costs
28,374
Non-cash restructuring costs:
Asset impairments (2)
5,420
Total restructuring costs
$33,794
____________________
(1)Primarily comprised of lease termination costs.
(2) Includes impairments of both lease right-of-use assets and property and equipment
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense (Benefit) Income tax expense (benefit) consisted of the following (in thousands):
2024
2023
2022
Current:
Federal
$6,904
$5,474
$15,518
State
1,256
3,106
5,174
8,160
8,580
20,692
Deferred:
Federal
(12,568)
(10,151)
(7,264)
State
(754)
(2,895)
(1,143)
(13,322)
(13,046)
(8,407)
Income tax (benefit) expense
$(5,162)
$(4,466)
$12,285
Reconciliation of Income Tax Expense (Benefit) at the Statutory Federal Rate The following table provides a reconciliation between the statutory federal income tax rate and the Company’s effective
income tax rate:
2024
2023
2022
Statutory federal income tax
21.0%
21.0%
21.0%
State income taxes, net of federal benefit
0.8
(3.5)
6.4
R&D tax credits
9.0
14.1
(5.5)
Return to provision
6.2
6.1
0.8
Investment tax credit
—
1.1
—
Stock-based compensation
(9.5)
(6.2)
(1.2)
Non-deductible compensation
(2.6)
(5.7)
1.7
Non-deductible expenses
(2.1)
(2.8)
1.3
Changes in unrecognized tax benefits
(0.5)
(0.5)
(0.4)
Valuation allowance
(3.0)
—
—
Other
0.9
(1.0)
1.0
Effective income tax rate
20.2%
22.6%
25.1%
Summary of Deferred Income Taxes The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):
2024
2023
Deferred tax assets:
Stock-based compensation
$7,090
$7,006
Operating lease liabilities
97,604
108,952
Warranty and returns liabilities
5,880
6,894
Net operating loss carryforwards and credits
2,327
1,738
Compensation and benefits
7,220
7,484
Research and development
19,017
18,079
Interest
9,503
3,747
Other
4,163
5,184
Total gross deferred tax assets
152,804
159,084
Valuation allowance
(806)
(48)
Total gross deferred tax assets after valuation allowance
151,998
159,036
Deferred tax liabilities:
Property and equipment
23,240
33,772
Operating lease right-of-use assets
89,276
99,351
Deferred revenue
2,516
3,065
Other
3,391
2,595
Total gross deferred tax liabilities
118,423
138,783
Net deferred tax assets
$33,575
$20,253
Summary of Reconciliations Unrecognized Tax Benefits Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows (in thousands):
Federal and State Tax
2024
2023
2022
Beginning balance
$3,671
$3,645
$3,869
Increases related to current-year tax positions
639
753
910
Increases related to prior-year tax positions
51
40
252
Decreases related to prior-year tax positions
(15)
—
(328)
Lapse of statute of limitations
(688)
(601)
(1,058)
Settlements with taxing authorities
—
(166)
—
Ending balance
$3,658
$3,671
$3,645
v3.25.0.1
Segment (Tables)
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Schedule of Operating Profit (Loss) from Segments to Consolidated The following is a summary of the significant expense categories and consolidated net (loss) income details provided to
the CODM (in thousands):
2024
2023
2022
Net Sales
$1,682,296
$1,887,482
$2,114,297
Less:
Cost of sales
(679,523)
(798,952)
(912,002)
Marketing expenses
(393,693)
(432,982)
(497,269)
Selling expenses
(372,931)
(414,460)
(422,359)
General and administrative
(148,736)
(145,949)
(153,266)
Research and development
(45,255)
(55,797)
(61,521)
Restructuring costs
(18,066)
(15,728)
—
Asset impairment charges
(1,220)
(673)
—
Interest expense
(48,368)
(42,694)
(18,985)
Income tax benefit (expense)
5,162
4,466
(12,285)
Net (loss) income
$(20,334)
$(15,287)
$36,610
v3.25.0.1
Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents - Narrative (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Accounts Payable    
Cash and Cash Equivalents [Line Items]    
Book overdrafts $ 22 $ 30
v3.25.0.1
Business and Summary of Significant Accounting Policies - Property and Equipment, Estimated Useful Lives of Property and Equipment (Details)
Dec. 28, 2024
Leasehold improvements | Minimum  
Property and equipment [Line Items]  
Estimated useful lives 5 years
Leasehold improvements | Maximum  
Property and equipment [Line Items]  
Estimated useful lives 15 years
Furniture and equipment | Minimum  
Property and equipment [Line Items]  
Estimated useful lives 3 years
Furniture and equipment | Maximum  
Property and equipment [Line Items]  
Estimated useful lives 15 years
Production machinery | Minimum  
Property and equipment [Line Items]  
Estimated useful lives 3 years
Production machinery | Maximum  
Property and equipment [Line Items]  
Estimated useful lives 7 years
Computer equipment and software | Minimum  
Property and equipment [Line Items]  
Estimated useful lives 3 years
Computer equipment and software | Maximum  
Property and equipment [Line Items]  
Estimated useful lives 12 years
v3.25.0.1
Business and Summary of Significant Accounting Policies - Goodwill and Intangible Assets, Net - Narrative (Details)
Dec. 28, 2024
Minimum  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 8 years
Maximum  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 10 years
v3.25.0.1
Business and Summary of Significant Accounting Policies - Goodwill and Indefinite-lived Intangible Assets, Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 28, 2024
USD ($)
reporting_unit
Dec. 30, 2023
USD ($)
Accounting Policies [Abstract]    
Number of reporting units | reporting_unit 1  
Goodwill | $ $ 64 $ 64
v3.25.0.1
Business and Summary of Significant Accounting Policies - Asset Impairment Charges - Narrative (Details)
 12 Months Ended
Dec. 28, 2024
USD ($)
Accounting Policies [Abstract]  
Impairment of goodwill and intangible assets $ 0
v3.25.0.1
Business and Summary of Significant Accounting Policies - Other Investments, Narrative (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Accounting Policies [Abstract]    
Non-marketable equity securities $ 1.2 $ 1.2
v3.25.0.1
Business and Summary of Significant Accounting Policies - Warranty Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Warranty Liabilities [Roll Forward]      
Balance at beginning of period $ 8,503 $ 8,997 $ 10,069
Additions charged to costs and expenses for current-year sales 13,821 15,939 16,694
Deductions from reserves (14,657) (16,438) (17,157)
Change in liabilities for pre-existing warranties during the current year, including expirations (720) 5 (609)
Balance at end of period $ 6,947 $ 8,503 $ 8,997
v3.25.0.1
Business and Summary of Significant Accounting Policies - Dividends - Narrative (Details)
 12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Leverage ratio 300.00%
v3.25.0.1
Business and Summary of Significant Accounting Policies - Share Repurchases - Narrative (Details)
Dec. 28, 2024
USD ($)
Accounting Policies [Abstract]  
Remaining authorized stock purchase plan $ 348,000,000
Approved share repurchase program $ 600,000,000
v3.25.0.1
Business and Summary of Significant Accounting Policies - Revenue Recognition - Narrative (Details) - SleepIQ Technology
 12 Months Ended
Dec. 28, 2024
Minimum  
Disaggregation of Revenue [Line Items]  
Estimated product life 4 years 6 months
Maximum  
Disaggregation of Revenue [Line Items]  
Estimated product life 5 years
v3.25.0.1
Business and Summary of Significant Accounting Policies - Advertising Costs - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Advertising expense $ 248 $ 272 $ 309
v3.25.0.1
Business and Summary of Significant Accounting Policies - Insurance - Narrative (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Accounting Policies [Abstract]    
Self-insurance liability $ 11 $ 13
Self-insurance liability, current 7 8
Self-insurance liability, noncurrent $ 4 $ 5
v3.25.0.1
Business and Summary of Significant Accounting Policies - Stock-Based Compensation - Narrative (Details) - shares
shares in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for grant 2.2    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award option vesting period 3 years    
Award expiration period 10 years    
Time-Based Stock Awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award option vesting period 3 years    
Performance- Based Stock Awards | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock awards - shares awarded (as a percent) 0.00% 0.00% 0.00%
Performance- Based Stock Awards | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock awards - shares awarded (as a percent) 200.00% 200.00% 200.00%
v3.25.0.1
Business and Summary of Significant Accounting Policies - New Accounting Pronouncements - Narrative (Details)
 12 Months Ended
Dec. 28, 2024
segment
reporting_unit
Accounting Policies [Abstract]  
Number of operating segments | segment 1
Number of reporting units | reporting_unit 1
v3.25.0.1
Fair Value Measurements (Details) - Level 1 - Recurring - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Other non-current assets    
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
v3.25.0.1
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Inventory Disclosure [Abstract]    
Raw Materials $ 11,434 $ 9,092
Work in Progress 130 92
Finished goods 91,588 106,249
Inventories $ 103,152 $ 115,433
v3.25.0.1
Inventories - Schedule of Finished Goods Inventories (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Inventory Disclosure [Abstract]    
Finished beds, including deliveries in-transit to those customers who have utilized home delivery services $ 34,725 $ 39,235
Finished components that were ready for assembly for the completion of beds 39,634 46,179
Retail accessories 17,229 20,835
Finished goods inventory $ 91,588 $ 106,249
v3.25.0.1
Property and Equipment - Summary of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Property and equipment [Line Items]    
Less: Accumulated depreciation and amortization $ (463,455) $ (435,336)
Property and equipment, net 129,574 179,503
Leasehold improvements    
Property and equipment [Line Items]    
Property and equipment, gross 136,127 143,006
Furniture and equipment    
Property and equipment [Line Items]    
Property and equipment, gross 153,106 158,309
Production machinery, computer equipment and software    
Property and equipment [Line Items]    
Property and equipment, gross 300,486 306,972
Construction in progress    
Property and equipment [Line Items]    
Property and equipment, gross $ 3,310 $ 6,552
v3.25.0.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation $ 65 $ 71 $ 64
v3.25.0.1
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Goodwill And Intangible Assets [Line Items]      
Goodwill $ 64,000,000 $ 64,000,000  
Gross Carrying Amount 20,823,000 20,823,000  
Accumulated Amortization 19,853,000 19,631,000  
Developed technologies      
Goodwill And Intangible Assets [Line Items]      
Gross Carrying Amount 18,851,000 18,851,000  
Accumulated Amortization 18,851,000 18,851,000  
Amortization expense definite-lived intangible assets 0 1,200,000 $ 2,000,000.0
Patents      
Goodwill And Intangible Assets [Line Items]      
Gross Carrying Amount 1,972,000 1,972,000  
Accumulated Amortization 1,002,000 780,000  
Amortization expense definite-lived intangible assets 200,000 200,000 $ 200,000
Trade Names      
Goodwill And Intangible Assets [Line Items]      
Indefinite-lived trade name/trademarks $ 1,400,000 $ 1,400,000  
v3.25.0.1
Goodwill and Intangible Assets, Net - Definite-lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 20,823 $ 20,823
Accumulated Amortization 19,853 19,631
Developed technologies    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 18,851 18,851
Accumulated Amortization 18,851 18,851
Patents    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1,972 1,972
Accumulated Amortization $ 1,002 $ 780
v3.25.0.1
Goodwill and Intangible Assets, Net - Schedule of Annual Amortization for Definite-Lived Intangible Assets (Details)
$ in Thousands
Dec. 28, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 226
2026 222
2027 222
2028 155
2029 99
Thereafter 46
Total future amortization for definite-lived intangible assets $ 970
v3.25.0.1
Credit Agreement - Narrative (Details) - Line of Credit
$ in Millions
Mar. 03, 2025
USD ($)
Nov. 02, 2023
USD ($)
Dec. 28, 2024
USD ($)
Sep. 30, 2023
USD ($)
Line of Credit Facility [Line Items]        
Current borrowing capacity   $ 685.0 $ 678.0 $ 825.0
Total availability     $ 1,000.0  
Accordion feature, increase limit   $ 342.5   $ 400.0
Commitment fee percentage   0.50%    
Net Leverage ratio, minimum threshold for commitment fee rate increase   3.50    
Increase (decrease) in basis spread on variable rate   0.25%    
Debt instrument, basis spread on variable rate   0.75%    
Net leverage ratio, minimum threshold   4.00    
Net leverage ratio, maximum threshold   4.50    
Requisite net leverage ratio   3.00   3.75
Amendment fee percentage   0.20%    
Subsequent Event        
Line of Credit Facility [Line Items]        
Net leverage ratio, minimum threshold 4.50      
Amendment fee percentage 0.20%      
Minimum liquidity $ 40.0      
Debt Covenant Period One        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold   5.00    
Interest coverage ratio, minimum threshold   1.50    
Debt Covenant Period One | Subsequent Event        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold 4.75      
Interest coverage ratio, minimum threshold 1.90      
Debt Covenant Period Two        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold   5.50    
Interest coverage ratio, minimum threshold   1.25    
Debt Covenant Period Two | Subsequent Event        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold 4.50      
Interest coverage ratio, minimum threshold 2.10      
Debt Covenant Period Three        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold   5.00    
Interest coverage ratio, minimum threshold   1.50    
Debt Covenant Period Three | Subsequent Event        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold 4.25      
Interest coverage ratio, minimum threshold 3.00      
Debt Covenant Period Four        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold   4.80    
Interest coverage ratio, minimum threshold   3.00    
Debt Covenant Period Four | Subsequent Event        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold 4.00      
Debt Covenant Period Five        
Line of Credit Facility [Line Items]        
Net leverage ratio, maximum threshold   4.00    
Debt Instrument, Agreement, Period One        
Line of Credit Facility [Line Items]        
Maximum cash add back   $ 30.0    
Debt Instrument, Redemption, Period Two        
Line of Credit Facility [Line Items]        
Maximum cash add back   20.0    
Revolving Credit Facility        
Line of Credit Facility [Line Items]        
Current borrowing capacity   $ 485.0   $ 625.0
v3.25.0.1
Credit Agreement - Schedule of Borrowings Under Credit Facility (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Debt Disclosure [Abstract]    
Outstanding borrowings $ 546,600 $ 539,500
Outstanding letters of credit 7,147 7,147
Additional borrowing capacity $ 123,753 $ 138,353
Weighted-average interest rate 7.60% 8.50%
v3.25.0.1
Leases - Additional Information (Details)
Dec. 28, 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
v3.25.0.1
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease costs $ 107,049 $ 113,510 $ 109,766
Variable lease costs $ 43 $ 278 $ 877
v3.25.0.1
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]    
2025 $ 104,800  
2026 94,005  
2027 77,310  
2028 64,734  
2029 44,711  
Thereafter 76,495  
Total operating lease payments 462,055  
Less: Interest 72,547  
Present value of operating lease liabilities 389,508  
Amount leases executed, not yet commenced, excluded from table 12,000  
Operating lease liabilities $ 82,307 $ 81,760
v3.25.0.1
Leases - Schedule of Other Information Related Operating Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Leases [Abstract]      
Weighted-average remaining lease term (years) 5 years 4 months 24 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 $ 108,116 $ 108,294 $ 99,819
Right-of-use assets obtained in exchange for operating lease liabilities $ 57,712 $ 69,396 $ 82,117
v3.25.0.1
Shareholders' Deficit - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 11,444 $ 14,855 $ 13,223
Income tax benefit 2,747 3,476 3,319
Total stock-based compensation expense, net of tax 8,697 11,379 9,904
Stock awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 8,157 11,053 9,471
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 3,287 $ 3,802 $ 3,752
v3.25.0.1
Shareholders' Deficit - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Stock Options    
Beginning balance, outstanding (in shares) 1,046,000  
Granted (in shares) 0  
Exercised (in shares) 0  
Canceled/Forfeited (in shares) (104,000)  
Ending balance, outstanding (in shares) 942,000 1,046,000
Ending balance, exercisable (in shares) 736,000  
Vested and expected to vest, ending balance (in shares) 926,000  
Weighted- Average Exercise Price per Share    
Outstanding, beginning balance (in dollars per share) $ 40.80  
Granted (in dollars per share) 0  
Exercised (in dollars per share) 0  
Canceled/Forfeited (in dollars per share) 40.38  
Outstanding, ending balance (in dollars per share) 40.85 $ 40.80
Exercisable, ending balance (in dollars per share) 42.90  
Vested and expected to vest, ending balance (in dollars per share) $ 40.95  
Weighted- Average Remaining Contractual Term    
Weighted-average remaining contractual term - outstanding (years) 5 years 7 months 6 days 6 years 2 months 12 days
Weighted-average remaining contractual term - exercisable (years) 4 years 10 months 24 days  
Weighted-average remaining contractual term - vested and expected to vest (years) 5 years 7 months 6 days  
Aggregate Intrinsic Value    
Aggregate intrinsic value - outstanding $ 0 $ 0
Aggregate intrinsic Value - exercisable 0  
Aggregate intrinsic value - vested and expected to vest $ 0  
v3.25.0.1
Shareholders' Deficit - Other Information Pertaining to Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Weighted-average grant date fair value of stock options granted (in dollars per share) $ 0 $ 16.41 $ 30.22
Total intrinsic value (at exercise) of stock options exercised $ 0 $ 298 $ 1,298
v3.25.0.1
Shareholders' Deficit - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercised (in shares) 0    
Granted (in shares) 0    
Approved share repurchase program $ 600,000,000    
Remaining authorized stock purchase plan $ 348,000,000    
Stock Award      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 1,200,000 1,300,000 600,000
Antidilutive securities excluded from calculation of earnings per share (in shares) 100,000 100,000  
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense related to non-vested awards $ 2,100,000    
Weighted average period to recognize remaining expense over 1 year 2 months 12 days    
Time- Based Stock Awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense related to non-vested awards $ 8,700,000    
Weighted average period to recognize remaining expense over 1 year 9 months 18 days    
Performance- Based Stock Awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense related to non-vested awards $ 2,800,000    
Weighted average period to recognize remaining expense over 1 year 8 months 12 days    
v3.25.0.1
Shareholders' Deficit - Assumptions Used to Calculate Fair Value of Options Granted Using Black-Scholes-Merton Option-Pricing Model (Details) - Stock options
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield (as a percent) 0.00% 0.00% 0.00%
Expected volatility (as a percent) 0.00% 64.00% 57.00%
Risk-free interest rate 0.00% 3.80% 2.20%
Expected term (years) 0 years 5 years 8 months 12 days 5 years 3 months 18 days
v3.25.0.1
Shareholders' Deficit - Stock Award Activity (Details)
shares in Thousands
 12 Months Ended
Dec. 28, 2024
$ / shares
shares
Time- Based Stock Awards  
Stock Awards  
Outstanding at beginning of period (in shares) | shares 397
Granted (in shares) | shares 674
Vested (in shares) | shares (181)
Canceled/Forfeited (in shares) | shares (77)
Outstanding at end of period (in shares) | shares 813
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of period (in dollars per share) | $ / shares $ 37.38
Granted (in dollars per share) | $ / shares 13.70
Vested (in dollars per share) | $ / shares 39.62
Canceled/Forfeited (in dollars per share) | $ / shares 23.05
Outstanding at end of period (in dollars per share) | $ / shares $ 18.60
Performance- Based Stock Awards  
Stock Awards  
Outstanding at beginning of period (in shares) | shares 699
Granted (in shares) | shares 211
Vested (in shares) | shares (45)
Canceled/Forfeited (in shares) | shares (88)
Outstanding at end of period (in shares) | shares 777
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of period (in dollars per share) | $ / shares $ 51.74
Granted (in dollars per share) | $ / shares 13.53
Vested (in dollars per share) | $ / shares 127.50
Canceled/Forfeited (in dollars per share) | $ / shares 99.19
Outstanding at end of period (in dollars per share) | $ / shares $ 31.74
v3.25.0.1
Shareholders' Deficit - Schedule of Repurchase of Common Stock (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Amount repurchased under Board-approved share repurchase program $ 0 $ 0 $ 54,868
Amount repurchased in connection with the vesting of employee restricted stock grants 768 3,747 9,320
Total amount repurchased (based on trade dates) $ 768 $ 3,747 $ 64,188
v3.25.0.1
Shareholders' Deficit - Components of Basic and Diluted Net Income per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Net (loss) income $ (20,334) $ (15,287) $ 36,610
Basic weighted-average shares outstanding (in shares) 22,606 22,429 22,396
Dilutive effect of stock-based awards (in shares) 0 0 456
Diluted weighted-average shares outstanding (in shares) 22,606 22,429 22,852
Net (loss) income per share - basic (in dollars per share) $ (0.90) $ (0.68) $ 1.63
Net (loss) income per share - diluted (in dollars per share) $ (0.90) $ (0.68) $ 1.60
v3.25.0.1
Revenue Recognition - Schedule of Deferred Contract Liabilities and Deferred Contract Assets (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Deferred contract assets included in:    
Deferred contract assets $ 79,142 $ 83,362
Deferred contract liabilities included in:    
Deferred contract liabilities 99,117 105,519
Other current assets    
Deferred contract assets included in:    
Other current assets 30,154 28,567
Other non-current assets    
Deferred contract assets included in:    
Other non-current assets 48,988 54,795
Other current liabilities    
Deferred contract liabilities included in:    
Other current liabilities 38,129 36,421
Other non-current liabilities    
Deferred contract liabilities included in:    
Other non-current liabilities $ 60,988 $ 69,098
v3.25.0.1
Revenue Recognition - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue recognized, included in beginning deferred contract liability balance $ 36 $ 36 $ 34
Revenue from Contract with Customer Benchmark | Timing of Transfer of Goods or Services Concentration Risk | Transferred at Point in Time      
Disaggregation of Revenue [Line Items]      
Revenue recognized at a point in time (as a percent) 98.00% 98.00% 98.00%
v3.25.0.1
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Net sales $ 1,682,296 $ 1,887,482 $ 2,114,297
Retail stores      
Disaggregation of Revenue [Line Items]      
Net sales 1,474,250 1,639,073 1,823,617
Online, phone, chat and other      
Disaggregation of Revenue [Line Items]      
Net sales $ 208,046 $ 248,409 $ 290,680
v3.25.0.1
Revenue Recognition - Schedule of Sales Return Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Sales Return Liability [Roll Forward]    
Balance at beginning of year $ 22,402 $ 25,594
Additions that reduce net sales 91,375 109,153
Deduction from reserves (94,685) (112,345)
Balance at end of period $ 19,092 $ 22,402
v3.25.0.1
Profit Sharing and 401(k) Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Employee compensation deferral (as a percent) 50.00%    
Employer contributions $ 7 $ 10 $ 10
v3.25.0.1
Restructuring Costs - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]          
Restructuring costs $ 33,794 $ 15,700 $ 18,066 $ 15,728 $ 0
Contract termination costs | Minimum          
Restructuring Cost and Reserve [Line Items]          
Remaining expected restructuring 5,000   5,000    
Contract termination costs | Maximum          
Restructuring Cost and Reserve [Line Items]          
Remaining expected restructuring $ 7,000   $ 7,000    
v3.25.0.1
Restructuring Costs - Summary of Restructuring Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]          
Total cash restructuring costs $ 28,374   $ 14,888 $ 13,486  
Asset impairment charges 5,420   3,178 2,242  
Total restructuring costs 33,794 $ 15,700 18,066 15,728 $ 0
Contract termination costs          
Restructuring Cost and Reserve [Line Items]          
Total cash restructuring costs 14,437   7,027 7,410  
Severance and employee-related benefits          
Restructuring Cost and Reserve [Line Items]          
Total cash restructuring costs 8,193   3,227 4,966  
Professional fees and other          
Restructuring Cost and Reserve [Line Items]          
Total cash restructuring costs $ 5,744   $ 4,634 $ 1,110  
v3.25.0.1
Restructuring Costs - Restructuring Accrual Activity (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 28, 2024
Dec. 30, 2023
Restructuring Reserve [Roll Forward]      
Balance at December 30, 2023   $ 8,720 $ 0
Expenses $ 28,374 14,888 13,486
Cash payments   (20,267) (4,766)
Balance at December 28, 2024 $ 3,341 $ 3,341 $ 8,720
v3.25.0.1
Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Current:      
Federal $ 6,904 $ 5,474 $ 15,518
State 1,256 3,106 5,174
Current income tax expense 8,160 8,580 20,692
Deferred:      
Federal (12,568) (10,151) (7,264)
State (754) (2,895) (1,143)
Deferred income tax expense (13,322) (13,046) (8,407)
Income tax (benefit) expense $ (5,162) $ (4,466) $ 12,285
v3.25.0.1
Income Taxes - Reconciliation of Income Tax Expense (Benefit) at the Statutory Federal Rate (Details)
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Statutory federal income tax 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 0.80% (3.50%) 6.40%
R&D tax credits 9.00% 14.10% (5.50%)
Return to provision 6.20% 6.10% 0.80%
Investment tax credit 0.00% 1.10% 0.00%
Stock-based compensation (9.50%) (6.20%) (1.20%)
Non-deductible compensation (2.60%) (5.70%) 1.70%
Non-deductible expenses (2.10%) (2.80%) 1.30%
Changes in unrecognized tax benefits (0.50%) (0.50%) (0.40%)
Valuation allowance (3.00%) 0.00% 0.00%
Other 0.90% (1.00%) 1.00%
Effective income tax rate 20.20% 22.60% 25.10%
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
Dec. 28, 2024
Dec. 30, 2023
Income Taxes [Line Items]    
Valuation allowance $ 806,000 $ 48,000
Unrecognized tax benefits that would impact effective tax rate 3,500,000 $ 3,400,000
Federal    
Income Taxes [Line Items]    
Operating loss carryforwards $ 400,000  
v3.25.0.1
Income Taxes - Summary of Deferred Income Taxes (Details) - USD ($)
$ in Thousands
Dec. 28, 2024
Dec. 30, 2023
Deferred tax assets:    
Stock-based compensation $ 7,090 $ 7,006
Operating lease liabilities 97,604 108,952
Warranty and returns liabilities 5,880 6,894
Net operating loss carryforwards and credits 2,327 1,738
Compensation and benefits 7,220 7,484
Research and development 19,017 18,079
Interest 9,503 3,747
Other 4,163 5,184
Total gross deferred tax assets 152,804 159,084
Valuation allowance (806) (48)
Total gross deferred tax assets after valuation allowance 151,998 159,036
Deferred tax liabilities:    
Property and equipment 23,240 33,772
Operating lease right-of-use assets 89,276 99,351
Deferred revenue 2,516 3,065
Other 3,391 2,595
Total gross deferred tax liabilities 118,423 138,783
Net deferred tax assets $ 33,575 $ 20,253
v3.25.0.1
Income Taxes - Summary of Reconciliations Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 3,671 $ 3,645 $ 3,869
Increases related to current-year tax positions 639 753 910
Increases related to prior-year tax positions 51 40 252
Decreases related to prior-year tax positions (15) 0 (328)
Lapse of statute of limitations (688) (601) (1,058)
Settlements with taxing authorities 0 (166) 0
Ending balance $ 3,658 $ 3,671 $ 3,645
v3.25.0.1
Segment - Narrative (Details)
 12 Months Ended
Dec. 28, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.25.0.1
Segment - Schedule of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]        
Net sales   $ 1,682,296 $ 1,887,482 $ 2,114,297
Cost of sales   (679,523) (798,952) (912,001)
General and administrative   (149,956) (146,621) (153,266)
Research and development   (45,255) (55,797) (61,521)
Asset impairment charges $ (5,420) (3,178) (2,242)  
Interest expense   (48,368) (42,695) (18,985)
Income tax (benefit) expense   5,162 4,466 (12,285)
Net (loss) income   (20,334) (15,287) 36,610
Reportable Segment        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Net sales   1,682,296 1,887,482 2,114,297
Cost of sales   (679,523) (798,952) (912,002)
Marketing expenses   (393,693) (432,982) (497,269)
Selling expenses   (372,931) (414,460) (422,359)
General and administrative   (148,736) (145,949) (153,266)
Research and development   (45,255) (55,797) (61,521)
Restructuring costs   (18,066) (15,728) 0
Asset impairment charges   (1,220) (673) 0
Interest expense   (48,368) (42,694) (18,985)
Income tax (benefit) expense   5,162 4,466 (12,285)
Net (loss) income   $ (20,334) $ (15,287) $ 36,610
v3.25.0.1
Commitments and Contingencies - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 28, 2024
USD ($)
lease_commitment
Purchase Commitment, Excluding Long-term Commitment [Line Items]  
Inventory purchase commitments $ 23
Purchase Commitment | Future Retail Sites  
Purchase Commitment, Excluding Long-term Commitment [Line Items]  
Number of future retail store and other lease commitments | lease_commitment 7
Future retail store and other leases, total lease payments $ 12
Purchase Commitment | Future Retail Sites | Minimum  
Purchase Commitment, Excluding Long-term Commitment [Line Items]  
Future retail store and other lease commitments term 11 years
Purchase Commitment | Future Retail Sites | Maximum  
Purchase Commitment, Excluding Long-term Commitment [Line Items]  
Future retail store and other lease commitments term 12 years
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period $ 1,437 $ 1,267 $ 924
Additions charged to costs and expenses 2,145 1,437 2,294
Deductions from reserves (2,469) (1,267) (1,951)
Balance at end of period $ 1,113 $ 1,437 $ 1,267