CSPR - Casper Sleep -17% after earnings miss light guidance amid supply chain issues

Casper Sleep (CSPR) reports direct-to-consumer sales fell 6.3% in Q3 and total revenue was down 3.3%. "We saw record interest for our products evidenced by record website traffic, continued to drive gross margin expansion and progress towards profitability, and had another sequential quarter of growth; however, our top-line growth was disappointing based on the initial demand signals," says CEO Philip Kim. The company says it saw challenges in the supply chain, including industry-wide shortages in textiles and chemicals critical to foam production which led to significant out-of-stock inventory both in our direct-to-consumer and retail partnership channels. Gross margin was up 480 bps Y/Y to 55.5% of sales. The increase in gross margin was primarily driven by favorable product mix related to a new mattress line launched in March, as well as lower logistics costs due to a change in service provider. Looking ahead, Casper Sleep sees Q4 revenue of $132M

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Casper Sleep -17% after earnings miss, light guidance amid supply chain issues