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Casper Sleep Posts Narrower-Than-Expected Loss

Casper Sleep, the mattress retailer, reports a loss for the second quarter that was narrower than Wall Street expectations.

Shares of Casper Sleep  (CSPR) - Get Casper Sleep, Inc. (CSPR) Report rose Tuesday after the mattress retailer reported a loss for the second quarter amid the coronavirus pandemic that was narrower than Wall Street expectations.

Revenue was $110.2 million in the latest quarter, up 16% from $95.2 million a year ago. The FactSet analyst consensus called for sales of $104.8 million in the latest quarter.

Store re-openings, which began May 14, boosted revenue. At the end of June, 57 of Casper Sleep's 59 stores had opened. Direct-to-consumer sales climbed 5% to $81 million in the latest quarter, while retail partnership revenue soared 61% to $29.2 million.

Casper Sleep posted a net loss of $24.2 million, or 61 cents a share, in the latest quarter, shrinking from $26.9 million, or $2.56 a share, last year. Analysts forecast a loss of 76 cents in the latest quarter.

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Casper Sleep shares recently traded at $8.60, down 10.23%, and have slumped 36% since their Feb. 6 initial public offering.

“We achieved record e-commerce revenues in the second quarter, while making significant progress toward profitability, which is well ahead of our expectations,” said CEO Philip Krim.

“Our adaptable multi-channel business has allowed us to continue to meet the needs of more consumers and capture market share in a challenging environment,” Krim added.

The revenue increase “reflects the positive momentum in both our retail partnership and direct-to-consumer channels, despite very modest sales in our retail stores in the quarter,” he said.

“As this quarter’s performance demonstrated, we are executing against our strategic and operational plan and we expect to continue delivering growth, gaining market share, achieving operating leverage and improving profitability.”