Sleep Number shares tank after sales fall more than expected on competition from online sellers

A Sleep Number representative lays on a new Sleep Number bed at the International CES in Las Vegas.
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Sleep Number shares dropped as much as 13 percent Thursday after the company failed to meet earnings and revenue expectations.

The bed manufacturer reported disappointing earnings results. First quarter profit came in at 52 cents versus the 56 cent consensus estimate, according to FactSet. Revenue for the period was $389 million, short of the $397 million expected.

Same-store sales fell 3 percent, further disappointing investors. The company along with other bed manufacturers face rising competition from online bed sellers.

Sleep Number did not respond immediately to CNBC's request for comment.