By Dhirendra Tripathi
Investing.com – Casper stock (NYSE:CSPR) slumped 17% Tuesday after the company reported widening of losses in the second quarter as higher raw material prices and operating expenses outweighed the rise in revenue.
Revenue rose 38% year-on-year to $151.75 million to beat expectations but that wasn’t good enough to overcome the 49% jump in cost of goods sold and 33% rise in operating expenses.
As a result, the net loss expanded to $33.74 million from $24.20 million in June quarter of 2020.
Prices of practically all the raw materials like cotton, foam, latex and plastics that go into making Casper’s pillows, mattresses, beddings and other products have risen as economies have boomed and consumers have looked to beef up their homes. Supply chain bottlenecks because of the lockdown have also inflated prices.
The company tweaked its forecast a little though it kept the revenue outlook unchanged. For 2021, the company expects revenue of approximately $580 million to $610 million, the same forecast it gave in May.
But the company added that it expects to achieve adjusted profitability before taxes, interest and other items during 2022, assuming manufacturing and supply chain capacity increases, materials shortages, labor and shipping constraints lessen, and inflationary pressure on input materials subsides.