Purple Innovation Reports 39.9 Pct Surge In Net Revenue

Purple Innovation, Inc., a brand of comfort products such as mattresses and pillows, reported that net revenue surged by 39.9 percent in the fourth quarter of 2020 in contrast to the fourth quarter of 2019, according to a Thursday (March 4) press release.

The firm also reported that direct-to-consumer (D2C) revenue jumped 57 percent in the fourth quarter of 2020 compared to the fourth quarter of 2019, while wholesale revenue increased by 9 percent over that time. Operating expenses were 42.9 percent of net revenue for the fourth quarter of 2020 in contrast to 45.4 percent in the year-ago period.

Purple Innovation said it had $65.7 million in inventories as of Dec. 31, 2020, in contrast with $47.6 million as of Dec. 31, 2019, as the firm was building inventory to support intended expansion with wholesale partners and the expectation of delays in ocean freight, among other reasons. The company said it had $123 million in cash and cash equivalents as of Dec. 31, 2020, in contrast to $33.5 million as of Dec. 31, 2019.

“We concluded an amazing year of profitable growth for Purple with a strong fourth-quarter performance,” CEO Joe Megibow said in the press releasse. “Despite the many challenges in 2020, our teams leaned in and executed successfully, including this holiday season, identifying and capitalizing on market opportunities while at the same time investing in future growth.”

As for its overall results, Purple Innovation reported 7 cents per diluted share in adjusted net income on $173.9 million in net revenue. The results fell short of analysts’ expectations of 11 cents per share in earnings on $196.33 million in revenue. The firm anticipates revenue to be between $160 million and $170 million for the first quarter of 2021.

Purple Innovation previously reported as part of its third-quarter 2020 results that its D2C revenue jumped by 97.5 percent and its wholesale revenue increased 6.9 percent in contrast to the third quarter of 2019.