Purple releases preliminary year-end financials

LEHI, Utah — Bedding resource Purple Innovation anticipates net sales of about $574 million and a net loss between $83.7 million and $97.5 million for the year ended Dec. 31, 2022, according to preliminary financial results released Jan. 30.

The company noted that the results are unaudited and are subject to change based on the completion of an ongoing internal review and related audit procedures. The net sales compare to guidance of $570 million to $590 million.

It plans to report its full results for the fourth quarter and full year ended Dec. 31, 2022, on March 16. At that point, it also will provide guidance for 2023.

But in a statement issued with the preliminary results, CEO Robert DeMartini said that the company was pleased with the company’s improvement in quarterly net sales “despite ongoing macroeconomic challenges.”

“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,” he added.

He also noted that the company’s introductions at the recently concluded Las Vegas Market will help drive growth in the months ahead.

“We believe the launch of these new products in our e-commerce, showroom and wholesale channels beginning in the second quarter, coupled with new brand positioning and the deployment of enhanced marketing programs, will drive year-over-year growth starting in the second half of 2023,” he said.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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