Business
Purple Innovation Reports First Quarter 2022 Results
LEHI, Utah, May 10, 2022 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known for creating the "World's First
About this update from Purple Innovation, Inc.
[{"type":"text","content":"LEHI, Utah, May 10, 2022 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) (\"Purple\"), a comfort innovation company known for creating the \"World's First No Pressure ™ Mattress,\" today announced results for the first quarter ended March 31, 2022.\n\n \n \n \n \n \n \n\n \nFirst Quarter Financial Summary (Comparisons versus First Quarter 2021)1Net revenue decreased 23.2% to $143.2 million compared to $186.4 million.Wholesale revenue decreased 6.3% and Direct-to-Consumer (DTC) revenue decreased 31.5%.Gross margin was 36.1% compared to 46.9%.Operating expenses as a percent of net revenue were 48.9% compared to 37.9%.Operating loss was $(18.4) million compared to operating income of $16.9 million.Net loss was $(13.6) million as compared to a net income of $20.9 million. Adjusted net loss was $(16.5) million, or $(0.24) per diluted share as compared to adjusted net income of $12.0 million, or $0.17 per diluted share.EBITDA was $(10.6) million compared to $27.8 million. Adjusted EBITDA decreased to $(9.6) million compared to $22.8 million.Cash and cash equivalents were $62.7 million at March 31, 2022.\"I am pleased that we exceeded our net revenue and adjusted EBITDA guidance, despite an increasingly challenging economic environment. Compared with the fourth quarter of 2021, these results represent a building block towards reestablishing Purple as a profitable growth company and creating a stronger foundation that will move us toward our long-term plans.\" said Chief Executive Officer Rob DeMartini. \"We were able to exceed guidance on stronger than expected demand in our wholesale and owned retail channels as we continue to build a true omnichannel brand. We are encouraged by elements of our recent performance, however, we remain in the early stages of creating the framework for strong operational execution. While we are making progress, and believe we will see sequential improvements including second-half profitability during this year, evolving economic and post-pandemic headwinds such as a shift in consumer buying behavior from online to in-stores and away from home related categories toward experiences and travel, has caused us to adopt a more conservative view on the remainder of 2022.\"\nDeMartini continued, \"While the timing around achieving our near- and long-term goals is being delayed, my confidence in our strateg...