New York, New York – Casper Sleep, the bed-in-a-box company, had total sales of $113m in the first quarter of 2020, up 26.40% on the same period last year.
Q1 sales up, but Casper retreats from Europe
Adjusted EBITDA fell from a loss of $14.3m in the first quarter of 2019 to a loss of $22.9m in the first quarter of 2020.
CEO Philip Krim said: 'I am pleased with the solid financial results in Q1 and strong early performance in Q2.'
First quarter revenue grew because the company sold more products directly to consumers and gained market share at its 59 stores in the US until they were closed by the coronavirus pandemic.
Also in the first quarter, the company changed its logistics provider, which should save money in the longer term. It also dropped prices to clear the decks for new products at the end of the quarter. Both of these moves hit EBITDA.
The coronavirus emergency has had 'only a minor impact to our inventory availability and deliver capacity', according to Krim.
Casper also confirmed that it is pulling out of Europe, with the loss of 78 jobs by the end of 2020. This will save the company $10m/year in costs.
The company is starting the second quarter on the up. Krim added: 'We achieved preliminary growth of over 15% year-over-year in April, led by e-commerce growth of over 35% and retail partnership growth of over 20%.'