Why Sleep Number Was a Big Winner on Wednesday
What happened
Nearly in time for the start of the National Football League's (NFL) upcoming season, Sleep Number (NASDAQ: SNBR) is jumping on the field with one of its top teams. The mattress maker said it has extended its marketing deal with the team by three years; investors clearly considered this to be a touchdown, as they bid the company's stock up by nearly 11% on the day.
So what
That team is none other than the reigning Super Bowl champions, the Los Angeles Rams. Sleep Number and the Rams have stretched out their existing marketing partnership for another three years. Under this deal, Sleep Number will remain the "Official Sleep + Wellness Partner" for the team.
The Rams are a relatively new partner for the company. The two sides began their marketing cooperation last year; Sleep Number claims that the team's players integrated its beds into their training regimens and as part of their normal day-to-day routines. The company went as far as to say that quality sleep "was the backbone of their Super Bowl-winning season," although that's highly debatable.
Sleep Number isn't limiting itself only to the champs. Last week it announced that it had made a similar arrangement with the Dallas Cowboys. This deal is longer, however, with a five-year term, and again the mattress manufacturer will be the Official Sleep + Wellness Partner.
Now what
Sleep Number has not disclosed the terms nor the financial particulars of either partnership, but investors don't seem to mind. It seems they like their company being very active and assertive in continuing to get its name out there, and staying on the radar of consumers who are willing to consider one of the company's comparatively premium offerings.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Sleep Number Corp. The Motley Fool has a disclosure policy.
