What does Sleep Number have up its sleeve? The company recently reported a net sales increase of 9% in 2020 despite the pandemic's effects on consumer spending. It was then rated a "strong buy" by the Zacks ranking system based on future earnings estimates, which could boost stock prices. Recent patent data suggests that Sleep Number may have a reason to be confident.
In 2020, Sleep Number filed two patents for climate-controlled mattress toppers that include a fluid layer for temperature control. This technology is different from the company's current temperature-regulating mattress pad, which cools and warms an air pocket to a certain temperature range. Fluid temperature control for sleep has already been developed and patented by companies such as Kryo, which recently merged with Ebb Therapeutics, and Eight Sleep. Sleep Number is one of the biggest patent holders in Mattresses and Environmental Control, with 73 patents and applications. Is patenting its own R&D the right move for the company, given its strong mattress sales? Or should smaller companies that are more focused on these technologies be positioning themselves for acquisition and licensing? The Patent Forecast® may give you a better idea. Keep up to date with Consumer Sleep by subscribing today.
