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From Home Furnishing Business
Sleep Number Q4 Sales Fall 13% Amid Semiconductor Delivery Delays
February 23,
2022 by HFBusiness Staff in Business Strategy, Industry 
Specialty sleep manufacturer and retailer Sleep Number said fourth-quarter sales fell 13 percent to $492 million due to a delay in delivery of semiconductor components that rendered the company unable to meet its December production and sales goals.
The company estimated the component delay cost the company $125 million in sales.
Net income for the quarter also plunged to $11.41 million, or 47 cents per share, from $61.4 million or $2.19 per share, in the fourth quarter of 2020.
For the full year, however, net sales hit a record $2.18 billion and net income also set a record at $153.7 million or $6.16 per share.
"The fourth quarter proved to be the most challenging as we received semiconductor components too late in December to fulfill our planned deliveries,” said Shelly Ibach, president and CEO. “Global electronics supplies remain constrained in the near-term, while demand for our 360 smart beds remains strong, reflecting increased consumer engagement and referrals from more than two million connected smart sleepers.”
She said component supplies will continue to be restrained in the first quarter, but the company is still projecting earnings per share will jump 10 percent to 15 percent in 2022.