Casper Reports Wider Loss - Will Cut 20% of Corporate Staff and Close in Europe

Mattress provider Casper Sleep reported a wider-than-expected loss. It's cutting more than 20% of corporate staff and shutting its Europe operations.
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Casper Sleep reported a wider-than-expected loss for the first quarter, its first full period of results since it went public in February. 

The New York mattress provider said it would cut more than a fifth of its corporate jobs and close its Europe operations.

The net loss widened to $34 million, or $1.23 a share, from $17.3 million, or $1.68, in the year-earlier quarter. 

Casper reported a 26% rise in revenue to $113 million, led by a nearly 13% increase in direct-to-consumer revenue, which totaled $90.3 million in the period. 

A survey of analysts by FactSet was expecting a per-share loss of 83 cents a share on revenue of $110.2 million.

"Our direct-to-consumer and retail partnership channels both performed well in Q1," Chief Executive Philip Krim said in a statement.

"Further, our e-commerce business exited the first quarter with strong momentum. We achieved preliminary revenue growth of over 15% year-over-year in April, led by e-commerce growth of over 35% and retail partnership growth of over 20%." 

Casper is reducing its corporate headcount by 78 employees and expects the winding down of its European operations to be complete by the end of the year. 

The move will reduce Casper's operating costs by more than $10 million on an annualized basis.

The mattress and bedding company says that its plans to be profitable by mid-2021 are still in place.

Casper at last check dropped 8.6% to $7.22. They've traded down as much as 19% on Tuesday.