Why Sleep Number Stock Tanked 17% at the Open Today

Shares of Sleep Number (NASDAQ: SNBR), which makes high-tech beds and bedding products, fell a dramatic 17% at the open of trading on July 21. An hour into the trading day the stock was still off by roughly 12%, so much of the loss was sticking. The company's earnings announcement after the close on July 20 was the driving force here.

At first blush, Sleep Number had a pretty good quarter. Indeed, second-quarter sales advanced 70% year over year and were up 36% from the second quarter of 2019. For the first six months of the year sales were 35% higher than they were in 2019. Earnings of $0.88 per share was up from a loss of $0.45 per share in 2020. Through the first six months of 2021, meanwhile, EPS was $3.44, up from $0.93 in 2020 and $0.95 in 2019. Management even raised its full-year 2021 earnings guidance by roughly 12%. So far so good.

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Source Fool.com