Shares of Casper Sleep (CSPR) – Get Report dropped Tuesday after the company reported a wider-than-expected second-quarter loss and an outlook below analysts’ estimates.
The New York City based mattress and bedding maker reported a second-quarter loss of 81 cents a share on revenue of $151.8 million. Analysts were expecting the company to report a loss of 33 cents on revenue of $151.2 million.
“Casper delivered all-time record quarterly revenue, reflecting continued demand for our innovative sleep products across our sales channels and the strength of the Casper brand,” CEO Philip Krim said.
The company said that inflationary pressures in raw materials, freight and labor costs across its supply chain “significantly hampered our ability to meet the full extent of the record level of demand.
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Casper shares were down 14.2% to $5.94 on Tuesday.
For the third quarter, the company expects revenue between $152 million and $159 million, the midpoint of which represents about 26% growth year over year. For the full year, the company expects revenue between $580 million and $610 million.
Analysts expect third-quarter revenue of $156.3 million with full-year revenue of $608.5 million.
The company expects an EBITDA loss in the third quarter of between $12.5 million and $9.5 million compared to an adjusted EBITDA loss of $6.7 million in the second quarter.
The company ended the second quarter with cash equivalents of nearly $50 million.
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“More than ever, our teams are focused on serving our customers and retail partners while effectively managing through these dynamic market conditions. Our momentum remains strong, and our brand is resonating with consumers,” Krim said.