Sleep Number more than doubles earnings per share in fourth quarter

Sleep Number more than doubled its earnings per share in the fourth quarter year over year, handily beating Wall Street estimates.

The company's revenue for the quarter ended Dec. 31 was up 13 percent to $411.8 million, also beating expectations by analysts polled by Thomson Reuters.

The results, which were released after the markets closed Wednesday, had Sleep Number shares up more than 10 percent in aftermarket trading. The stock closed Wednesday at $35.86, up 34 cents a share.

"Our purpose-driven brand and our revolutionary new 360 smart beds are driving enthusiastic consumer engagement and accelerated performance," said Shelly Ibach, the Minneapolis-based company's president and chief executive, in a statement. "We expect this trajectory to continue in 2019 as we advance our initiatives to drive demand, leverage our business model and deploy capital efficiently."

Sleep Number earned $27 million, or 81 cents per share, in the fourth quarter.

For the year, the company's net income was up 4.5 percent to $69.5 million, or $1.92 a share. Revenue was up 6 percent to $1.5 billion.

Sales growth was fastest in the second half of the year when the company had the full lineup of its 360 smart beds in its more than 580 stores nationwide, the company said.

During the quarter, the company also continued to adjust its store operations, opening 20 stores and closing 10. They expect to open 60-70 new stores in 2019.