Direct-to-consumer and online mattress companies are making moves to be in physical retail stores, but what kind of volume are they moving?
An industry insider reached out to me and said this would be helpful information for the industry to have, so I did some investigating and put together a list of the Top 10 online mattress companies by 2022 or most recently reported revenue.
Some of these companies don’t exclusively sell online and never did, but they still play an important part in the grand scheme of things. Let me know if you have any updated information that would be helpful to add to this list so the industry can use this as a resource.
Beyond that, I offer some general observations about each one based on what’s happening now, the company’s websites and social presence, and what I’ve recently seen and heard from others in the industry.
- Ashley Furniture Industries – Estimated $10.3 billion
A company like Ashley is only going to be No. 1 on this list because of its large market share with furniture, accessories, outdoor and more. However, that doesn’t discount the company’s share of the bedding category. There doesn’t seem to be a specific breakdown of Ashley’s mattress or online businesses. If you know of one, please let us know.
- Tempur Sealy – Estimated $4.9 billion
This one should come as no surprise to anyone who’s been in the industry longer than 30 minutes. While this number reflects the company’s most recently reported revenue, there doesn’t seem to be a breakdown of solely online sales. Also, have you looked at TSI’s stocks recently? There are some interesting things happening as rumors of TSI buying Mattress Firm grow noisier.
- Mattress Firm – Estimated $4.4 billion
Speaking of Mattress Firm, this is the estimated revenue for 2021, and it accounts for the company’s entire business, not solely online sales. New earnings may be on the way, but they are likely delayed because of the TSI talks. However, with 54% of all mattress sales taking place online, and with Mattress Firm’s advertising presence, online sales could be a new focus for the company.
- Serta Simmons Bedding – Estimated $2.4 billion
SSB reported over $2 billion in revenue last year; however, they also filed for bankruptcy in January. According to bankruptcy documents, the company has about $1.9 billion in total debt, which it aims to reduce to about $300 million. This may not have surprised the industry, and many people are saying it’s not going to affect the industry at large, including Serta’s five licensees.
- Sleep Number – Estimated $2.1 billion
Sleep Number may not be the first company people think of when they think of online mattress retailers, but with its brand recognition and strong advertising presence, the company is practically a household name. With tech as the key seller — and sometimes the key pain point — the company’s Chair, President and CEO Shelly Ibach said, “… we are excited to introduce our next-generation smart beds beginning in the second quarter [of 2023]. We are seeing improved demand trends early in the year, with the consistent flow of microchips supporting normalized delivery times for our smart beds and adjustable bases.”
- Resident Mattress – Estimated around $700 million
Resident has five brands under its belt — Nectar, Dreamcloud, Siena, Awara and Cloverlane. Nectar most recently reported $500 million in sales a year in 2020. With the other brands added in, it’s possible Resident’s total revenue for 2022 sales could be $700 million, or higher. Have other thoughts? Let me know!
- Purple – Estimated $650 million to $690 million
Last year, Purple revised its previous 2022 outlook statement and said it expects full-year 2022 net revenue to be between $650 million and $690 million. Nothing has been said officially about its 2022 earnings yet, but there are a few unusual things happening with Purple recently. If you haven’t heard, the company’s largest stakeholder, Coliseum Capital, wants to restructure Purple’s board of directors in order to avoid losing sales. Purple countered that they think it’s a distraction to business, and Coliseum has filed a lawsuit against Purple.
- Saatva – Estimated $500 million
Perhaps the biggest “underdog” on the list, Saatva grew to $400 million in sales in 2021 by building a national manufacturing and delivery distribution network. Previously it only sold online, but now the company also has plans to open mattress showrooms in 50 major markets over the next four years.
- Casper – Estimated $500 million
While once the biggest online mattress player, Casper focused heavily on brick-and-mortar retailers at the recent Las Vegas Market. This could indicate that online sales are slowing — or that it understands the value of physical stores. Or both. The company hasn’t posted any earnings I could find since 2019 when its annual revenue was $230 million. However, a direct quote from an August 2022 Retail Dive interview with CEO Emilie Arel could indicate that the company’s revenue now is around $500 million, as she says, “Taking a company from zero to $50 million is very different than taking a company from $500 million to a billion.”
- Leesa – Estimated $200 million to $400 million
As far as I can find, there hasn’t been a recent revenue declaration for Leesa, and online results show different and likely not reliable numbers. However, one site put the company a little over $200 million in 2020. David Wolf, one of the founders of this company, is clearly an investment guy. But the other, Jaimie Diamondstein, has a long family history of being in the mattress industry. According to Leesa’s website, he’s the mastermind behind the product’s design and functionality, and the sales seem to reflect his skill.
Notably, 3Z Brands is not on this list, as it declined to offer revenue numbers for Brooklyn Bedding, Helix, Birch, Bear and recently acquired Nolah Sleep. But between all five, 3Z would surely make the list. Private companies Avocado Green Brands and GhostBed also declined to share numbers with Bedding News Now.
Please feel free to contribute to this conversation so we can update this article and offer it as a resource to the industry: email@example.com.
Alex Milstein is editor-in-chief of sister publication Bedding News Now.