Casper's CEO advises other companies directly to consumers

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Companies like Allbirds, Warby Parker, and Casper pioneered a new way of selling where they sell their products online directly to consumers, instead of going through retailers like department stores. Many Direct-to-consumer (DTC) companies have done well during the pandemic, most notably mattress retailer Casper, which was bought by private equity firm Durational Capital Management in November last year. Now, many of these high-flying companies are hitting the ground running as many Americans are filing for bankruptcy.

Casper is not affected by financial problems, which the CEO of the company, Emilie Arel, spoke on stage at the Fortune Most Powerful Women Next Gen conference last Wednesday. The decline in consumer spending on mattresses and other major durable goods has put Casper in a difficult position, Arel said on stage, and said the company “really started to feel the pain” in Q4 of last year.

“We have to start doing real things,” Arel said. “You have to prepare for the fall.”

Arel succeeded CEO Philip Krim in November 2021. Prior to his executive role, he was the company’s president and chief commercial officer.

In the first six months of 2021, Casper’s revenue was about $279 million, and its loss for the same period was about $55 million. Casper has always struggled to make a profit – an obstacle that Arel wants to overcome.

“I always tell my team, ‘We’re not for nothing,'” Arel said. “This is a business in which we need to make money. And I think it’s important that you have a clear understanding with your team about what that means and that it’s going to be hard work. “

In an effort to tap into a larger market for what Casper called “the economy of sleep,” the company expanded its products beyond mattresses to include products such as self-closing lights, dog beds, nightwear, robes, and more. It remains to be seen whether Casper’s new offering can help it bounce back from difficult supply chains, tough competition, and a volatile financial environment and ultimately turn a profit.

Arel’s advice to other business leaders navigating these chilly waters is clear: Prepare for the worst and have a good team ready to move forward with you.

“I think it’s important to have the right team, and they know what they’re signing up for,” Arel said.

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