Sleep Number stock rating upgraded by Goldman as bedding discounts remain stable\n\nGoldman Sachs has maintained its focus on Sleep Number Corporation (NASDAQ:SNBR) and Leggett &amp; Platt (NYSE:LEG) in its latest assessment of U.S. bedding manufacturers, citing company-specific initiatives as key drivers for future performance.\n\nThe investment bank conducted price scans across major bedding brands and retailers during the Fourth of July sales period, finding that average discounts reached 23% this year, representing only a slight 2 basis point increase year-over-year.\n\nGoldman’s analysis revealed that prices actually rose 1.7% overall, primarily driven by new product introductions, including Sealy’s product refresh that recently entered the market.\n\nWhile the firm’s channel checks indicated a temporary boost in demand during the holiday weekend, Goldman expects this increase to moderate in the coming weeks due to \"ongoing housing and macro headwinds\" affecting the sector.\n\nDespite these broader market challenges, Goldman emphasized its continued focus on \"company-specific efforts to drive results for SGI and LEG,\" suggesting these companies may be better positioned to navigate the current competitive landscape.\n\nIn other recent news, Leggett &amp; Platt Incorporated reported its Q1 2025 financial results, revealing an adjusted earnings per share (EPS) of $0.24, surpassing the forecast of $0.22. Despite this earnings beat, the company experienced a revenue shortfall, with actual revenue at $1.02 billion against a forecast of $1.07 billion. The company maintained its guidance for full-year sales between $4.0 billion and $4.3 billion. Leggett &amp; Platt’s strategic initiatives, including divestitures and restructuring, were highlighted as key focal points during their earnings call. The company has projected its full-year adjusted EPS to range from $1.00 to $1.20. Additionally, Leggett &amp; Platt is in the process of selling its aerospace business, expecting after-tax cash proceeds of approximately $240 million. The company also emphasized its strong position in the steel rod and wire markets, benefiting from steel tariffs. Analyst firms have not significantly adjusted their outlook, but the company’s strategic restructuring and operational efficiency improvements were noted as positive developments.

Sleep Number stock rating upgraded by Goldman as bedding discounts remain stable

Goldman Sachs has upgraded Sleep Number Corporation's stock rating, citing stable bedding discounts and company-specific initiatives. The firm analyzed U.S. bedding manufacturers, noting a 23% average discount rate and a 1.7% price increase driven by new product launches. Leggett & Platt reported Q1 2025 financial results, including an EPS beat but revenue shortfall, with strategic initiatives like aerospace divestitures and steel market advantages.