$SNBRQ

SELECT COMFORT CORP

CIK:0000827187|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 04, 2026	Mar. 29, 2025
Income Statement [Abstract]
Net sales	$ 318,987	$ 393,261
Cost of sales	134,372	152,726
Gross profit	184,615	240,535
Operating expenses:
Sales and marketing	160,795	189,103
General and administrative	33,592	38,619
Research and development	5,348	10,903
Restructuring costs	21,736	60
Total operating expenses	221,471	238,685
Operating (loss) income	(36,856)	1,850
Interest expense, net	13,103	11,081
Loss before income taxes	(49,959)	(9,231)
Income tax expense (benefit)	338	(585)
Net loss	$ (50,297)	$ (8,646)
Basic and diluted net loss per share:
Net loss per share – basic (in dollars per share)	$ (2.19)	$ (0.38)
Net loss per share – diluted (in dollars per share)	$ (2.19)	$ (0.38)
Weighted-average shares – basic (in shares)	22,991	22,706
Weighted-average shares – diluted (in shares)	22,991	22,706

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2026	Mar. 29, 2025
Cash flows from operating activities:
Net loss	$ (50,297)	$ (8,646)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	12,371	14,836
Stock-based compensation	2,826	3,951
Inventory obsolescence write off	2,099	0
Loss on disposal and impairment of leased assets	17,539	17
Deferred income taxes	0	(1,321)
Changes in operating assets and liabilities:
Accounts receivable	2,148	3,291
Inventories	1,918	(724)
Income taxes	482	736
Prepaid expenses and other assets	(4,266)	781
Accounts payable	3,818	8,784
Customer prepayments	3,811	(6,576)
Accrued compensation and benefits	4,354	(9,686)
Other taxes and withholding	(1,003)	(1,925)
Other accruals and liabilities	(3,551)	(6,144)
Net cash used in operating activities	(7,751)	(2,626)
Cash flows from investing activities:
Purchases of property and equipment	(5,441)	(4,599)
Net cash used in investing activities	(5,441)	(4,599)
Cash flows from financing activities:
Net increase in short-term borrowings	13,805	9,087
Repurchases of common stock	(373)	(563)
Debt issuance costs	(449)	(1,558)
Net cash provided by financing activities	12,983	6,966
Net decrease in cash and cash equivalents	(209)	(259)
Cash and cash equivalents, at beginning of period	1,693	1,950
Cash and cash equivalents, at end of period	$ 1,484	$ 1,691

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 04, 2026	Jan. 03, 2026
Current assets:
Cash and cash equivalents	$ 1,484	$ 1,693
Accounts receivable, net of allowances of $656 and $694, respectively	13,354	15,502
Inventories	78,216	82,233
Prepaid expenses	19,727	13,656
Other current assets	30,694	36,873
Total current assets	143,475	149,957
Non-current assets:
Property and equipment, net	73,755	86,528
Operating lease right-of-use assets	295,315	311,723
Goodwill and intangible assets, net	66,131	66,186
Deferred income taxes	399	399
Other non-current assets	61,933	65,267
Total assets	641,008	680,060
Current liabilities:
Borrowings under credit facility	605,600	588,200
Accounts payable	116,395	117,977
Customer prepayments	43,338	39,527
Accrued sales returns	12,266	12,817
Compensation and benefits	19,415	14,975
Taxes and withholding	10,908	11,429
Operating lease liabilities	79,340	81,191
Other current liabilities	44,447	46,430
Total current liabilities	931,709	912,546
Non-current liabilities:
Operating lease liabilities	268,697	273,111
Other non-current liabilities	66,921	72,878
Total liabilities	1,267,327	1,258,535
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, 23,049 and 22,860 shares issued and outstanding, respectively	230	229
Additional paid-in capital	34,906	32,454
Accumulated deficit	(661,455)	(611,158)
Total shareholders’ deficit	(626,319)	(578,475)
Total liabilities and shareholders’ deficit	$ 641,008	$ 680,060