at a valuation of $1.1 billion. Its stock has dropped 40% since the merger, and the company is currently valued at $355 million. Like many other bed-in-a-box companies, according to Basham, Purple has not yet seen a profit. In 2018, the company made $285 million in sales, and reported a net loss of $19.6 million.
Most of the outsourcing is to just four major manufacturers, according to Dan Schecter, senior vice president of sales and marketing at Carpenter. He said his company makes mattresses for 40% of the mattress industry at 60 factories throughout the country. That includes including roughly 14 bed-in-a-box brands, along with all the traditional players like Tempur Sealy.
"In order for Layla customers to truly benefit from the product, we believe in a business model that combines utilizing licensed technology and abilities from multiple manufactures combined with our own proprietary inventions bundled up into one superior product," Sheikh said. "This model allows us to innovate and create without restrictions."
"It's the amount of information. There's just too much," he said. "If you go online, not only do all of them look alike, but they're all talking about their different products. If I tell you that my mattress is special because it's infused with copper gel, does it mean anything to you?" Casper, which was founded in 2014, was among the first bed-in-a-box company to gain widespread recognition. Their logo, which is navy blue with a sans-serif font, has similarities with Leesa's, launched in 2015, Nectar's, which was founded in 2016, and Purple's, also formed in 2016.
I bought one and it was so horribly soft.