Purple Q1 2022 Earnings Report
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