Purple once again lowered its full-year 2023 guidance, now expecting net revenue to be in the range of $510 million to $520 million compared to the previous projection of $560 million and $590 million.<\/li>\n<\/ul>\nDive Insight:<\/h3>\n
Purple\u2019s latest earnings results come amid consumer pressures on the home sector.\u00a0<\/p>\n
“Our third quarter top-line performance demonstrates that our Path to Premium Sleep strategy is gaining traction,” Chief Executive Officer Rob DeMartini said in a statement. “We are encouraged by the continued sequential acceleration in revenue and we are focused on driving further improvement across each of our distribution channels during the fourth quarter and into 2024. While market conditions and one-time costs associated with our new product transition have pressured our bottom line this year, we remain confident that we are well positioned to continue taking market share and deliver sustained, profitable growth over the long-term.”<\/p>\n
The mattress company\u2019s drop in DTC net revenue was due to a decline in e-commerce revenue, which was partially offset by growth in Purple retail showroom revenue.<\/p>\n
The brand added five showrooms to its roster over the past 12 months. Purple\u2019s softened demand in its sector was \u201cnearly fully offset\u201d by a positive response to its latest product launches including its higher-priced collections.\u00a0<\/p>\n
\u201cWhile our improving top-line performance is yet to translate into improved profitability, this has been due largely to temporarily elevated costs related to the transition to our new product and branding strategy,\u201d DeMartini said on a call with analysts Thursday.<\/p>\n
The company\u2019s new CFO \u2014\u00a0former Party City executive Todd Vogensen \u2014\u00a0told analysts on the call that the filing of Purple\u2019s 10-Q form for the third quarter will be delayed until <\/strong>Nov.\u00a014 because the company \u201cidentified an error in our accounting for the warranty terms specified in contracts with our wholesale customers, and we\u2019re evaluating the disclosure impact of such errors on our prior periods.\u201d<\/p>\nResults from prior periods were revised for its latest earnings press release. Some revised numbers include Purple\u2019s second-quarter net loss, which was updated to a loss of $40.5 million compared to the previously reported $37.7 million. The brand\u2019s Q2 operating loss was updated to $40.3 million from $37.3 million.<\/p>\n
On future showroom growth, Vogensen noted that \u201cgiven current industry trends, we plan to moderate showroom expansion and currently are planning to add only a handful of new locations in 2024.\u201d\u00a0<\/p>\n<\/p><\/div>\n
![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
<\/a><\/p>
<\/p>\n","protected":false},"excerpt":{"rendered":"Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive Brief: Purple\u2019s third-quarter net revenue decreased […]<\/p>\n","protected":false},"author":1,"featured_media":10910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-10909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=10909"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10909\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/10910"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=10909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=10909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=10909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}