Sleep Number (NASDAQ:SNBR) news for Thursday concerning a business update has SNBR stock on the move.
A Sleep Number news release has the company addressing the coronavirus from China. The company says that it is making several moves to manage liquidity during the pandemic. That includes reducing executive pay in favor of restricted stock units.
It’s also worth pointing out that Sleep Number has already taken actions to reduce spending via changes in its workforce. This has 40% of its employees furloughed and another 30% working reduced hours.
Those changes make sense as Sleep Number has been forced to close down many of its businesses. It’s also reducing certain benefits, such as its 401(K) match, as it deals with the economic turmoil the coronavirus is causing.
The Sleep Number news release also notes that the company has borrowed $262 million remaining from its $450 million revolving credit facility. It’s also working to expand the credit agreement with an incremental $75 million under its $150 million accordion.
Shelly Ibach, President and CEO of Sleep Number, said this about the changes affecting SNBR stock.
“Sleep Number entered this unprecedented environment from a place of strength in every aspect of the business, including record double-digit demand growth for more than six consecutive quarters. In response to the potential impact of COVID-19, we immediately preserved financial flexibility and accessed significant liquidity with the support of our banks.”
SBNR stock started off strong on Thursday but is only up slightly as of the afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.