Casper Will Go Public, Offering the Latest New and Exciting Way to Lose Money

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Casper Will Go Public, Offering the Latest New and Exciting Way to Lose Money
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Last year, Casper lost $93 million on revenues of $358 million. On Friday, it filed paperwork to go public. jbarro writes

“As the wellness equation increasingly evolves to include sleep, the business of sleep is growing and evolving into what we call the Sleep Economy,” says the company’s S-1 IPO filing. “We are helping to accelerate this transformation. Our mission is to awaken the potential of a well-rested world, and we want Casper to become the top-of-mind brand for best-in-class products and experiences that improve how we sleep.

As consumers become educated around the serious potential health consequences of poor sleep, they are poised to spend more on sleep products in the same way that they have increased spending in other areas of health and wellness. However, unlike other categories of health and wellness, historically there were no powerful brands that provided holistic solutions to the Sleep Economy.

What is the evidence that members of the public are now inclined to increase their spending on sleep products? The filing points to research from the Better Sleep Council, a trade association, which found consumer expectations about what they would have to pay for “a quality mattress” rose 19 percent from 2007 to 2016. But all that means is customer expectations kept pace with inflation, which also totaled 19 percent from 2007 to 2016.

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