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Aug. 12, 2020, 12:12 p.m. EDT

Casper Sleep is missing out on sales, analysts say

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By Tonya Garcia

Casper Sleep Inc. /zigman2/quotes/216229741/composite CSPR -3.63% is "leaving sales on the table" and underperforming competitors like Tempur Sealy International Inc. /zigman2/quotes/207239091/composite TPX -1.12% and Purple Innovation Inc. /zigman2/quotes/200268252/composite PRPL -2.23% , according to Wedbush analysts. The mattress company reported second-quarter revenue that beat FactSet expectations, but missed Wedbush's forecast. "Given 55%+ gross margins in the online channel and depressed advertising rates, the economics to capture additional sales and drive incremental profit should be compelling," analysts led by Seth Basham wrote. "This is particularly true in a very robust demand environment and with a business model geared to the fast-growing online channel." Casper's revenue for the quarter totaled $110.2 million, with direct-to-consumer revenue totaling $81 million, up 5% from last year. The company also announced new retail partnerships with Walmart Inc.'s /zigman2/quotes/207374728/composite WMT +1.32% Sam's Club warehouse retail chain and Ashley Home Store among them. "Casper is underperforming most publicly-traded mattress peers (such as Tempur Sealy and Purple) on top line growth and bottom line profitability in recent months," Wedbush said. "[C]ontinued relative sales growth weakness in its core direct-to-consumer business (only low-single-digit growth in May and June) leaves us disappointed." Wedbush rates Casper stock neutral with an $8, up $1. Casper announced its quarterly earnings on Tuesday, with shares closing the day down 6.2%. For the last three months, Casper stock has gained 39.3% while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.16% has rallied 17.6% for the period.

/zigman2/quotes/216229741/composite
US : U.S.: NYSE
$ 7.70
-0.29 -3.63%
Volume: 448,749
Sept. 21, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$320.81 million
Rev. per Employee
N/A
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/zigman2/quotes/207239091/composite
US : U.S.: NYSE
$ 86.76
-0.98 -1.12%
Volume: 466,328
Sept. 21, 2020 4:00p
P/E Ratio
23.45
Dividend Yield
N/A
Market Cap
$4.52 billion
Rev. per Employee
$435,952
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/zigman2/quotes/200268252/composite
US : U.S.: Nasdaq
$ 21.53
-0.49 -2.23%
Volume: 815,975
Sept. 21, 2020 4:00p
P/E Ratio
204.46
Dividend Yield
N/A
Market Cap
$820.42 million
Rev. per Employee
$460,953
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/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 137.07
+1.78 +1.32%
Volume: 15.76M
Sept. 21, 2020 4:00p
P/E Ratio
21.85
Dividend Yield
1.58%
Market Cap
$383.38 billion
Rev. per Employee
$223,654
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/zigman2/quotes/210599714/realtime
US : S&P US
3,281.06
-38.41 -1.16%
Volume: 2.97B
Sept. 21, 2020 5:00p
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