Re:Casper Sleep S-1
by awalton on Friday January 10, 2020 @09:34PM
(#22017694)
> Seems like all that's happened is they just keep fat margins for themselves.
Judging by their S-1, not so much... They're offering up $100M in shares on $200M of assets and $300M in debt. They spend about as much on marketing as they make from selling the goods, leaving shareholders to pay for all of the administration expenses. If it were a tech company it'd be easy to say this is another debt-fueled startup looking for an exit...
Re:Casper Sleep S-1
by wbl on Saturday January 11, 2020 @08:59AM
(#22019872)
The gross margin of manufactured consumer goods with lots of competition isn't usually 50٪. But you're right marketing is needed to maintain it. I'm stunned by the high general and administrative costs.
Judging by their S-1, not so much... They're offering up $100M in shares on $200M of assets and $300M in debt. They spend about as much on marketing as they make from selling the goods, leaving shareholders to pay for all of the administration expenses. If it were a tech company it'd be easy to say this is another debt-fueled startup looking for an exit...