NFL Star Travis Kelce Just Became A Minority Shareholder In This Mattress Company – Stock Gains 10%

Stocktwits

Shares of Sleep Number Corp. (SNBR) jumped more than 10% after the opening bell on Wednesday after the company announced that Kansas City Chiefs star and three-time Super Bowl champion Travis Kelce became a minority shareholder.

As part of the agreement, Kelce will acquire Sleep Number common stock on the open market and receive restricted stock units that vest over the initial three-year term. Kelce’s total ownership will remain below 5%, though he will become one of Sleep Number’s top shareholders.

As part of the three-year agreement, Kelce will appear in Sleep Number’s national marketing campaigns, including television commercials and digital content across social and online platforms. President and CEO, Linda Findley, said that Kelce’s presence will be a “helpful accelerator” in a bid to attract new and younger consumers to the brand.

The three-year collaboration with Kelce is a central to Sleep Number’s broader marketing strategy and further strengthens its partnership with the National Football League (NFL), which the company has served as an official partner since 2018.

Retail Reaction

Retail sentiment for SNBR on Stocktwits shifted to ‘bullish’ from ‘neutral’ a day earlier.

One user sees upside potential in the stock.

https://stocktwits.com/Mr__G/message/640636200

Earlier this month, Piper Sandler raised the stock’s price target to $12 from $5 and maintained a ‘Neutral’ rating, according to The Fly.

Sleep Number will be hoping that Kelce’s involvement will bring a boost to sales, which fell 19.6% to $343 million in the third quarter, while net loss widened to $40 million.

The stock has declined 42% over the past year.

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Sleep Number stock rises after Travis Kelce takes stake in mattress maker

Investing.com

Advanced Micro Devices

Investing.com -- Sleep Number (NASDAQ:SNBR) stock rose 4% Wednesday after NFL star Travis Kelce took a stake in the mattress maker as part of a new partnership deal.

The Kansas City Chiefs tight end will become one of Sleep Number’s top shareholders with a stake of under 5%, according to a company statement reported by Reuters. The three-year partnership will also feature Kelce in national advertising campaigns.

Kelce is purchasing some shares directly while receiving additional restricted stock that will vest over the three-year period. The exact size and value of the stake were not disclosed by the company.

The three-time Super Bowl champion has been sleeping on a Sleep Number bed since 2019 and has publicly endorsed the company’s products since at least 2020. Kelce said in a statement that becoming an investor "felt like a natural next step."

"This partnership reflects my confidence in where the company is headed and the growing opportunity around sleep," he added.

This investment marks Kelce’s latest foray into public companies, following his stake in amusement park chain Six Flags Entertainment last year. His investments have gained significant attention partly due to his relationship with singer Taylor Swift. When news broke of Kelce joining activist hedge fund Jana Partners in taking a stake in Six Flags last October, shares soared 18%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Sleep Number Corp - Announces Three-Year Brand Deal With Travis Kelce And Tmk Enterprises Llc - Sec Filing

Reuters

Sleep Number

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Company: Nfl Star Travis Kelce Taking Stake In Mattress Maker Sleep Number As Part Of A Partnership

Reuters

Sleep Number

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Q3 Earnings Roundup: Sleep Number (NASDAQ:SNBR) And The Rest Of The Home Furniture Retailer Segment

Stock Story

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the home furniture retailer stocks, including Sleep Number and its peers.

Furniture retailers understand that ‘home is where the heart is’ but that no home is complete without that comfy sofa to kick back on or a dreamy bed to rest in. These stores focus on providing not only what is practically needed in a house but also aesthetics, style, and charm in the form of tables, lamps, and mirrors. Decades ago, it was thought that furniture would resist e-commerce because of the logistical challenges of shipping large furniture, but now you can buy a mattress online and get it in a box a few days later; so just like other retailers, furniture stores need to adapt to new realities and consumer behaviors.

The 4 home furniture retailer stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

Luckily, home furniture retailer stocks have performed well with share prices up 49% on average since the latest earnings results.

Weakest Q3: Sleep Number

Known for mattresses that can be adjusted with regards to firmness, Sleep Number manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.

Sleep Number reported revenues of $342.9 million, down 19.6% year on year. This print fell short of analysts’ expectations by 5.4%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Linda Findley, President and CEO, commented, “We have successfully executed an amendment and extension of our bank agreement through 2027, giving us greater flexibility to further our turnaround plans. With this new agreement, combined with meaningful fixed cost reductions achieved in 2025, we will invest in growth in 2026. To drive consumer demand, we are making strategic shifts in three key areas: product, brand positioning and distribution.”

Sleep Number achieved the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 116% since reporting and currently trades at $11.87.

Read our full report on Sleep Number here, it’s free.

Best Q3: Williams-Sonoma

Started in 1956 as a store specializing in French cookware, Williams-Sonoma is a specialty retailer of higher-end kitchenware, home goods, and furniture.

Williams-Sonoma reported revenues of $1.88 billion, up 4.6% year on year, outperforming analysts’ expectations by 0.6%. The business had a strong quarter with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 17% since reporting. It currently trades at $211.52.

Formerly known as Restoration Hardware, RH is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.

RH reported revenues of $883.8 million, up 8.9% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 52.2% since the results and currently trades at $232.50.

Read our full analysis of RH’s results here.

Arhaus

With an aesthetic that features natural materials such as reclaimed wood, Arhaus is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.

Arhaus reported revenues of $344.6 million, up 8% year on year. This number beat analysts’ expectations by 2%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

Arhaus achieved the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 10.8% since reporting and currently trades at $10.81.

Read our full, actionable report on Arhaus here, it’s free.

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