Wellness technology company Sleep Number posted net sales decline of 13 per cent year on year to $473 million for the third quarter.

The company attributed the slump to a drop in demand in August and September. Operating expenses also decreased by $25 million to $266 million.

The company plans to close 40 to 50 stores by the end of 2024 and slow down the rate of new store openings and remodels. It currently operates more than 650 locations across the US.

“The third quarter was challenging for Sleep Number and the bedding industry as the consumer demand trajectory changed abruptly midway through the quarter,” said Shelly Ibach, chair, president and CEO at Sleep Number. 

As a result, the firm initiated additional cost reduction measures, expecting to lower 2024 operating expenses by approximately $50 million.

The measures include a reduction in headcount across all areas of the organization.

“We expect these actions and broad-based restructuring initiatives to result in a more durable operating model with improved profitability and cash flows in a range of economic environments,” Ibach elaborated.

For FY23, the company expects net sales to be down low double digits versus the prior year.