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Mar 31, 2022
Purple Q1 2022 Earnings Report
Purple Innovation reported first quarter results, exceeding net revenue and adjusted EBITDA guidance.
Key Takeaways
Purple Innovation's first quarter net revenue decreased by 23.2% to $143.2 million compared to the previous year. The company reported a net loss of $(13.6) million, and adjusted EBITDA was $(9.6) million. Despite these challenges, the company believes sequential improvements will occur each quarter and that it will achieve profitable growth in the second half of the year.
Net revenue decreased 23.2% year-over-year to $143.2 million.
Wholesale revenue decreased 6.3% and DTC revenue decreased 31.5%.
Gross margin declined to 36.1% compared to 46.9% in the prior year period.
Net loss was $(13.6) million, compared to a net income of $20.9 million in the prior year period.
Purple
Purple
Forward Guidance
The company expects full year 2022 net revenue to be between $650 million and $690 million, and adjusted EBITDA to be between $21 million and $27 million. They anticipate sequential improvements each quarter and profitable growth in the second half of the year.
Positive Outlook
- Sequential improvements expected each quarter in 2022
- Profitable growth anticipated in the second half of the year
- Gross margins expected to exit 2022 close to 40%
- Strategies being implemented aimed at improving execution and strengthening margins
- Company expects benefits from elevating the Purple brand, further developing and expanding distribution channels and accelerating product innovation
Challenges Ahead
- Economic and post-pandemic headwinds are expected to continue
- Effects of inflation and changes in consumer spending patterns
- More cautious view on the remainder of the year
- Amending its 2022 outlook
- Timing around achieving near- and long-term goals is being delayed