We’re going to the Mattresses with a deep dive into the space. The mattresses category was a clear COVID winner. This is an industry that grows at an average of ~3% every year, and just had a year where that growth rate tripled to over 9% in 2020, with demand remaining high into 2021 aided by factors such as the strength in the housing market, investment in the home during lockdown, and families de-urbanizing and (at least temporarily) consolidating into larger homes. Mattresses are long lived durable goods. While the US mattress replacement cycle has fallen over the past decade, the reality is that it still takes a consumer an average of 8 years to replace a new mattress. The big question is, what happens next when we have a period of slowing growth driving the mean reversion to that 3% annual growth rate. In this deck we will go over the state of the mattress industry and key investment considerations as well as our view as to what will happen next. We’ll also dig into the tickers in the space outlining why we think SNBR is a short here, providing a bull/bear debate on PRPL, and our take on the other names in the space, including the expected to again come public Mattress Firm.
Relevant tickers: SNBR, PRPL, CSPR, TPX, MFRM
Call Details:
Date/Time: Friday, October 8th at 12:30pm EDT Add to Calendar: CLICK HERE
Live Video Link: CLICK HERE
