Parachute Home
Parachute Home sells direct-to-consumer bedding, towels, and home textiles online and in stores.
On the record
Checkpoint: Sales results and reorder decision for the second Parachute for Target capsule collection
The call
Parachute is profitable but shrinking its footprint while peers like Boll & Branch grow, leaving its next chapter tied to whether Target keeps buying and whether new capital ever arrives.
Parachute Home sells high-end sheets, pillows, and home textiles online and through a shrinking network of stores. It is easy for better-funded competitors like Boll & Branch and Brooklinen to copy what Parachute does, and those rivals are already bigger and expanding while Parachute has closed most of its stores and laid off workers. The one thing that could change this is whether Parachute can become a steady, profitable design partner for Target, or find a buyer willing to pay for its brand and customer base, because without new investment or a clear competitive advantage, the company will keep getting smaller.
Why
01
AI pressure: None apparent. No AI product targets bedding directly yet, but AI shopping agents could flatten brand discovery and push buyers toward whoever ranks cheapest. Could AI do the core job? Only partly.
02
Bigger players: Boll & Branch. Boll & Branch has passed $200M in revenue and is opening more stores while Parachute closes 19 of its 26 locations. Could a giant copy it? Yes, easily.
03
What protects it. A working Target partnership that sold out its first capsule and got a second one, giving Parachute distribution without paying for its own stores.
What would change this call
Whether Parachute opens any new stores or keeps closing them past the 6 remaining in late 2025. Further closures would confirm continued retail contraction, not a stabilization.
Whether Parachute announces a new funding round or discloses audited revenue figures. Would show outside capital still believes in the brand after 8 years without a raise.
Whether the Target-exclusive Parachute collection expands, shrinks, or is discontinued. Signals whether Parachute is becoming a durable or a disposable wholesale partner for Target.
Whether Parachute announces a new funding round or discloses audited revenue figures. Would show outside capital still believes in the brand after 8 years without a raise.
Whether the Target-exclusive Parachute collection expands, shrinks, or is discontinued. Signals whether Parachute is becoming a durable or a disposable wholesale partner for Target.
Key numbers
- Revenue exceeded $150M in 2021
- 19 of 26 stores closed in 2025
- Target capsule sold out, second launch June 2026
Named risks
- No new funding round since 2018 Series C, an 8-year capital gap as of mid-2026.
- Store footprint contracting (19 of 26 closed in 2025) while direct peers expand retail.
- Unresolved public CEO discrepancy between Ariel Kaye and Mehdi Ait Oufkir.
- Low employee sentiment: 2.8/5 Glassdoor rating, 28% CEO approval as of July 2026.
- Current revenue undisclosed; reliable figures unavailable since 2021.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Boll & Branch | losing to | Grew to 15 stores and >$200M revenue by Nov 2025-Dec 2024 while Parachute closed 19 of 26 stores in 2025 |
| Brooklinen | losing to | Brooklinen ~$16.26M monthly online revenue vs Parachute ~$3.57M as of May 25, 2026 |
| Casper | contesting | Similar DTC-to-retail strategy but Casper was acquired by Carpenter in 2024-2025 after struggling to scale stores |
| Target (as wholesale partner/channel) | contesting | Parachute for Target sold out first capsule, launched second in June 2026, raising channel dependency |
Questions people ask
- Is Parachute Home profitable in 2026?
- Yes. Parachute told Inc. in March 2024 it had recently become profitable after confirming over $150M in 2021 revenue, and Modern Retail reported on October 9, 2025 that it remained profitable through 2024, though current revenue is undisclosed.
- Why did Parachute Home close so many stores?
- Parachute closed 19 of its 26 stores in 2025, per Retail Dive on June 27, 2025, shifting away from 'massive storefronts' toward wholesale partnerships with Target and Nordstrom; six stores remained as of October 2025.
- Who owns Parachute Home and has it raised new funding?
- Parachute Home is private and venture-backed, with its last funding a $30M Series C from H.I.G. Growth Partners in June 2018. No new funding round has been publicly reported since then, as of mid-2026.
- Who is the CEO of Parachute Home?
- This is unresolved. Founder Ariel Kaye is listed as CEO in some profiles, but 2025-2026 press coverage, including Business of Home on June 26, 2025, names Mehdi Ait Oufkir as CEO, an unreconciled discrepancy in public sources.
- Is Parachute Home losing ground to Boll & Branch or Brooklinen?
- Yes. Boll & Branch reported over $200M in revenue and grew from 8 to 15 stores by November 6, 2025, while Parachute closed 19 of 26 stores in 2025; a May 25, 2026 e-commerce snapshot put Brooklinen at about $16.26M monthly online revenue versus Parachute's roughly $3.57M.
- Could AI replace Parachute Home's business?
- Not directly. Parachute sells physical bedding and textiles, which AI cannot manufacture or ship; AI exposure is limited to customer service and marketing content, areas the brief flags as commodity workflows rather than core to Parachute's model.
Timeline
- 2026-07-02Parachute launches second exclusive capsule collection with Target after first sold out
- 2026-06-19Headcount estimated at 118-120, down 13% year over year per Crustdata
- 2026-03-16LinkedIn lists Parachute Home at 120 employees, 51-200 band
- 2025-10-09Modern Retail confirms Parachute profitable through 2024; 6 stores remain
- 2025-06-27Parachute announces closing 19 of its 26 retail stores
- 2025-06-26Business of Home names Mehdi Ait Oufkir as CEO amid retail pullback
- 2025-04-23Parachute for Target launches with 200+ SKUs priced $12-$199
- 2024-06-04Parachute launches textile recycling program with SuperCircle
- 2024-03-06Inc. reports Parachute recently profitable, cites $150M+ 2021 revenue
- 2018-06Parachute raises $30M Series C led by H.I.G. Growth Partners
Revision history
24 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- How Parachute Achieved Profitability (2024-03-06)
- Parachute bets on a scaled-down store fleet to drive growth (2025-10-09)
- Parachute Home Stock Price, Funding, Valuation, Revenue (2018-06-26)
- Parachute Home - Headcount, Funding & Open Jobs (2026-06-19)
- Parachute to close 19 stores this year, shift away from 'massive storefronts' (2025-06-27)
- Target debuts exclusive home collection with Parachute (2025-04-23)
- Target, Parachute team up again on home capsule collection (2026-07-02)
- Parachute pulls back on retail stores, following a DTC trend (2025-06-26)
- Parachute Reviews (2026-07-14)
- They Grew a Business to $200M+ Annual Revenue (2024-12-16)
- Boll & Branch Grows to 15 Stores Nationwide (2025-11-06)
- brooklinen.com eCommerce Revenue (2026-05-25)