Sleep Number on hunt for new CFO

Dive Brief:

Mattress maker Sleep Number Corp. said its CFO, David Callen, is stepping down after more than eight years to pursue other opportunities, effective Monday.
Callen will continue to serve in a financial advisory role through March 3, while Sleep Number tries to ensure a smooth transition through the report of its fiscal 2022 financial results, the Minneapolis-based company said in a statement on Friday.
The company has retained executive search firm Korn Ferry to assist with the hunt for a permanent CFO. In the meantime, Chris Krusmark, Sleep Number's chief human resources officer, will assume the position on an interim basis.

Dive Insight:

The announcement follows news in October that Sleep Number's net sales decreased 16% to $541 million in the third quarter of 2022, amid semiconductor chip supply constraints and historically low levels of consumer demand.

"Macro pressures intensified in Q3 on all three fronts: demand, chip supply, and COGS (cost of goods sold) input costs," Callen said during an earnings call at the time.

Based on preliminary financial results, the company estimates fiscal 2022 net sales of $2.1 billion, according to Friday's statement.

Callen had served in Sleep Number's executive leadership team since April 2014, overseeing the company’s financial performance during its transition from mattress retailer to wellness technology leader, the statement said. His departure is not the result of disagreements with the company on any subject, including its operations, policies, or practices, it said.

"He has played a significant role in strengthening our competitive advantages, progressing our capital deployment, and delivering value to stakeholders," Sleep Number CEO Shelly Ibach said in the statement.

Krusmark, 43, started with Sleep Number in 2005 and held several financial leadership roles supporting operations, sales, real estate, marketing, and product innovation. He then transitioned to vice president of sales operations, field services and training in 2015.

In 2020, Krusmark was promoted to senior vice president and chief human resources officer. Prior to joining Sleep Number, he served as a certified public accountant with EY and Arthur Andersen.