Ahead of showcasing its latest premium mattress collection at the Las Vegas Market trade show, Purple announced it expects to report a fiscal 2022 net loss between $83.7 million and $97.5 million. The preliminary results compare to its 2021 reported net income of $3.9 million.
The home goods brand said Monday it expects 2022’s net sales to be on the lower end of its guidance, at about $574 million, according to a press release. Adjusted EBITDA is expected to also be at the lower end of its guidance range of $2 million to $7 million.
"I am pleased that we delivered sequential improvement in quarterly net sales despite ongoing macroeconomic challenges,” Purple CEO Rob DeMartini said in a statement. “While our fourth quarter top-line performance was encouraging, industry headwinds, in particular the impact of inflation on consumer discretionary spending and a highly promotional environment during the holiday season, put some additional pressure on gross margins and profitability.”
At Las Vegas Market this week, Purple will reveal a new line of premium mattresses, which DeMartini says will be launched through its e-commerce, wholesale and showroom channels in the second quarter of 2023.
The projected results come amid a battle between the brand’s board and an activist investor. Earlier this month, Purple said it had previously rejected an unsolicited buyout bid from Coliseum Capital Management, which currently owns about 44% of the brand’s shares. The investors have since proposed to replace most of Purple’s board, according to a statement from a special committee its board.
After serving as acting CEO since December 2021, the company officially gave DeMartini the chief role in March 2022, and later appointed a new chief operating officer in May.
Purple’s financial performance has declined since the height of the pandemic, when it saw 2020 net revenue increase 51.4% year over year, with direct-to-consumer revenue jumping by 83%.
via https://www.aiupnow.com
Dani James, Khareem Sudlow
