Casper Sleep (NYSE:CSPR) trades lower in early action despite topping Q2 sales estimates and delivering adjusted EBITDA of -$11.4M during the quarter vs. -$21.9M consensus.
The company says direct-to-consumer revenue increased 5.0% to $81.0M during the quarter despite very modest owned-store sales. Strength of ots e-commerce channel was partially offset by the loss of sales in retail stores due to the impact of COVID-19-related closures. The e-commerce channel benefited from an acceleration of online shopping by consumers during the pandemic. Gross margin was up 280 bps compared to a year ago to 51.8% of sales.
Casper Sleep ended the quarter with a cash position of $98.2M vs. $67.6M a year ago.
Supply chain update: “We have been impacted by industry-wide capacity constraints which have led to increased delivery times for certain of our products through our e-commerce platform and impacted order fulfillment capabilities for certain of our retail partners. We are actively qualifying and on-boarding new suppliers and expect these additional capabilities to mitigate any inventory constraints within the upcoming quarter.”
No formal guidance was issued by the company.
Shares of CSPR are down 6.05% in premarket trading to $9.00.
Previously: Casper Sleep EPS beats by $0.16, beats on revenue (Aug. 11)
