Casper Sleep’s stock tumbles after wider-than-expected loss, surprise drop in revenue

/ / News

Shares of Casper Sleep Inc. tumbled 9.0% in premarket trading Monday, after the mattress-in-a-box seller reported a wider-than-expected third-quarter loss on revenue that surprisingly declined, citing supply chain challenges given as a result of the COVID-19 pandemic. The net loss narrowed to $15.9 million, or 40 cents a share, from $23.0 million, or $2.16 a share, in the year-ago period. The FactSet consensus was for a per-share loss of 36 cents. Revenue fell 3.3% to $123.5 million, while the FactSet consensus was for a 14% rise to $145.9 million. Direct-to-consumer sales fell 11.4% as the closure of its European operations and depressed foot traffic as a result of the COVID-19 pandemic, was partially offset by a “modest” increase in North America e-commerce sales. The company expects fourth-quarter revenue of $132 million to $142 million, below the FactSet consensus of $143 million. “Challenges in our supply chain, including industry-wide shortages in textiles and chemicals critical to foam production, led to significant out-of-stock inventory both in our direct-to-consumer and retail partnership channels,” said Chief Executive Philip Krim. The stock has lost 9.1% over the past three months through Friday, while the S&P 500 has gained 6.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.