Business
Purple Innovation Reports Third Quarter 2021 Results
LEHI, Utah, Nov. 9, 2021 /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, Nov. 9, 2021 /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 third quarter ended September 30, 2021.\n\n \n \n \n \n \n \n\n \nThird Quarter Financial Summary (Comparisons versus Third Quarter 2020 and 2019)[1]\nNet revenue decreased 8.7% to $170.8 million, compared to 2020 and increased 45.5% compared to 2019. Wholesale revenue increased 9.6% over 2020 and 17.1% over 2019; Direct-to-Consumer (DTC) revenue decreased 15.9% compared to 2020 and increased 66.1% over 2019.Gross profit was 35.8% compared to 47.2% in 2020 and 45.0% in 2019. Operating expenses as a percent of net revenue were 39.6% compared to 34.2% in 2020 and 35.7% in 2019. Operating loss was $(6.6) million compared to operating income of $24.3 million in 2020 and operating income of $11.0 million 2019. Net income was $2.1 million compared to a net loss of $(87.2) million in 2020 and net income of $7.2 million in 2019. Adjusted net loss was $(4.9) million, or $(0.07) per diluted share, as compared to adjusted net income of $17.2 million, or $0.27 per diluted share, in 2020 and adjusted net income of $9.5 million, or $0.17 per diluted share, in 2019. EBITDA was $2.4 million compared to $(83.5) million in 2020, reflecting primarily the impact from the change in fair value of warrant liabilities, and $9.3 million in 2019. Adjusted EBITDA was $0.1 million compared to $30.1 million in 2020 and $15.3 million in 2019. The Company views comparison to the 2019 period to be more meaningful than the comparable 2020 period given the exceptional COVID-19 related consumer demand changes experienced in the same period in 2020.\n\"Our third quarter results were disappointing, largely driven by impacts from our manufacturing backlog that were longer-lasting than we anticipated. Our lack of inventory impacted sales through all of our channels which are deeply interconnected. Specifically, delays in planned wholesale expansion, slower re-acceleration of existing wholesale door productivity, and a more prolonged build-back from the effect of marketing spend reduction in response to inventory shortages which in turn also impacted our digital business. Furthermore, we missed opportunities related to pricing and cost management\" said...