Wall Street Zen Downgrades Sleep Number to 'Strong Sell'

Analysts cite concerns over the mattress company's financial performance and outlook.

Apr. 20, 2026 at 6:40am

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A high-contrast, black and white close-up image of the gears, motors, and other heavy industrial components that make up the internal workings of a modern mattress manufacturing facility, conveying a sense of the scale and complexity of the mattress production process.As the mattress industry faces economic headwinds, the intricate machinery and manufacturing processes that power leading brands like Sleep Number come into sharp focus.Minneapolis Today

Wall Street Zen has downgraded shares of Sleep Number (NASDAQ:SNBR) from a 'sell' rating to a 'strong sell' rating, citing the company's recent financial struggles and lowered price targets from other analysts. The Minneapolis-based mattress retailer has faced headwinds from the pandemic and economic uncertainty, leading to a significant drop in its stock price over the past year.

Why it matters

Sleep Number's downgrade highlights the challenges facing the broader retail industry, especially discretionary consumer brands, as they navigate the fallout from the COVID-19 crisis. The company's struggles could signal broader concerns about consumer spending and the health of the housing market, which has a direct impact on mattress sales.

The details

In its research report, Wall Street Zen cited Sleep Number's disappointing financial results in recent quarters, including a significant earnings miss in the first quarter of 2026. The analysts also pointed to lowered price targets from other firms, such as Piper Sandler and UBS Group, as further evidence of the company's weakening position. Sleep Number has been grappling with supply chain disruptions, reduced foot traffic in its retail stores, and increased competition from online mattress brands.

  • On March 13, 2026, Piper Sandler lowered its price target for Sleep Number from $12 to $5.
  • On January 9, 2026, Weiss Ratings reiterated a 'sell (e+)' rating on Sleep Number's stock.
  • On March 12, 2026, Sleep Number reported Q1 2026 earnings that missed analysts' expectations by a wide margin.

The players

Sleep Number Corporation

A Minneapolis-based company that specializes in the design, manufacture, and retail of adjustable air mattresses and bedding products. The company's flagship Sleep Number® bed features dual air chambers that allow each side of the mattress to be tailored to an individual's preferred firmness, supported by integrated SleepIQ® technology.

Wall Street Zen

A research firm that has downgraded Sleep Number's stock from a 'sell' rating to a 'strong sell' rating, citing concerns over the company's financial performance and outlook.

Piper Sandler

An investment bank that has lowered its price target for Sleep Number from $12 to $5, reflecting its negative outlook on the company.

UBS Group

A financial services firm that has also lowered its price target for Sleep Number, from $10 to $4, and assigned a 'neutral' rating to the stock.

Weiss Ratings

A research firm that has reiterated a 'sell (e+)' rating on Sleep Number's stock.

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What they’re saying

“Sleep Number has faced significant headwinds in recent quarters, and we believe the company's financial performance will continue to deteriorate in the near term.”

— Wall Street Zen Analyst

What’s next

Investors will be closely watching Sleep Number's upcoming earnings reports and any further updates from the company on its efforts to address the challenges it is facing.

The takeaway

The downgrade of Sleep Number's stock by Wall Street Zen highlights the broader challenges facing the retail industry, particularly discretionary consumer brands, as they navigate the economic uncertainty and shifting consumer behaviors brought on by the COVID-19 pandemic.