Shares of bedding manufacturer and retailer Sleep Number (NASDAQ:SNBR) fell 3.1% in the morning session after new government data showed a decline in consumer spending on furniture, signaling sector-specific weakness.

Although overall U.S. retail sales surpassed expectations with a 0.6% rise in August, the report revealed cautious consumer behavior in certain areas. Specifically, furniture store sales experienced a 0.3% drop from July, suggesting a selective pullback in discretionary spending on big-ticket items. This trend aligns with broader reports indicating that businesses providing non-essential goods are under stress. As the cost of essentials continues to rise, households are limiting discretionary spending, which directly impacts companies like Sleep Number.

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Sleep Number’s shares are extremely volatile and have had 88 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock dropped 5.4% on the news that the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.

Sleep Number is down 42.3% since the beginning of the year, and at $8.62 per share, it is trading 57.8% below its 52-week high of $20.41 from December 2024. Investors who bought $1,000 worth of Sleep Number’s shares 5 years ago would now be looking at an investment worth $171.89.

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