Sleep Number Corporation SNBR reported impressive results for second-quarter fiscal 2020 (ended Jun 27, 2020), wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Following the earnings release, the company’s shares grew 3.7% on Jul 15.It did not provide its fiscal 2020 guidance due to coronavirus-led uncertainty but informed that more than 95% of its 600 stores are open now.Quarter in DetailsThe company reported loss of 45 cents per share, narrower than the consensus estimate of a loss of 60 cents by 25%. It recorded earnings of 14 cents per share in the year-ago quarter. The year-over-year deterioration was due to COVID-19 impacts.Sleep Number Corporation Price, Consensus and EPS Surprise Sleep Number Corporation price-consensus-eps-surprise-chart | Sleep Number Corporation QuoteNet trade sales totaled $285 million, which topped the consensus mark of $255 million by 11.7% but decreased 20% from the prior-year level. The downside was mainly due to coronavirus-led shutdown. In April, only 23% of the total stores were operating, followed by 47% in May and 81% in June.Retail accounted for 72.2% of total net sales, while Online and phone, and Wholesale/other contributed 27.5% and 0.3%, respectively.Gross margin during the quarter contracted 380 basis points (bps) due to product mix changes and sales deleverage as a result of the COVID-19 pandemic. Operating expenses, as a percentage of net sales, increased 250 bps year over year.Adjusted EBITDA declined 68.4% year over year to $8.5 million.FinancialsAs of Jun 27, 2020, the company had $1.65 million cash and cash equivalents compared with 1.59 million on Dec 28, 2019. Cash and liquidity available under the credit facility at the end of the reported quarter was $295 million.Net cash provided by operating activities was $87 million in the past six months, up 24% from $70.3 million in the comparable year-ago period. Free cash flow totaled negative $9.3 million compared with negative $11.9 million.Long-term debt was $227.9 million, down from $282.3 million at the end of the year-ago quarter. Return on invested capital (ROIC) came in at 17.2%, up from 16.8% on Jun 29.Stores at second quarter-end were 598 compared with 594 in the prior year.Zacks RankSleep Number — which shares space with Masonite International Corporation DOOR, American Woodmark Corporation AMWD and WillScot Corporation WSC in the Furniture industry — currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Breakout Biotech Stocks with Triple-Digit Profit PotentialThe biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Woodmark Corporation (AMWD): Free Stock Analysis Report WillScot Corporation (WSC): Free Stock Analysis Report Masonite International Corporation (DOOR): Free Stock Analysis Report Sleep Number Corporation (SNBR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research