Casper Scares Off Investors as Suppliers Can’t Keep Up With Demand
Investing.comAugust 11, 2020
By Christiana Sciaudone
Investing.com — Casper Sleep Inc (NYSE:CSPR) dropped 7% after it said Covid-19-related constraints were hindering product delivery.
The mattress maker went public in February at $12 a share, and the stock hasn’t yet climbed back up to that level.
Casper’s loss per share of 61 cents beat the 76-cent estimate on sales of $110 million, which came in higher than the forecasted $104 million. Direct-to-consumer sales increased 5%, which was partially offset by the loss of sales in retail stores.
“Certain of our suppliers and logistics providers have temporarily experienced supply constraints or labor shortages due to the COVID-19 outbreak,” the company said in a statement. “As a result, 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.”
The company is “actively qualifying and on-boarding new suppliers” and expects inventory constraints to ease within the upcoming quarter.« Previous Post Next Post »