In This Article:
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Revenue: $104.2 million, down 13% year-over-year.
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Showroom Revenue Growth: 7% increase, with comparable sales up 11%.
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Adjusted EBITDA: Increased by $8 million and 650 basis points compared to last year.
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Adjusted Gross Margin: Exceeded 40%, improving by 550 basis points year-over-year.
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Wholesale Revenue: $40.8 million, down 24.2% year-over-year.
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Direct-to-Consumer Revenue: $63.4 million, with showrooms up 7.4% despite a 5% reduction in store count.
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E-commerce Revenue: Down 8.2% year-over-year.
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Operating Expenses: $55.5 million, down 14.4% year-over-year.
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Adjusted Net Loss: Negative $11.9 million, improved from negative $20.4 million last year.
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Adjusted Loss Per Share: Negative $0.11, compared to negative $0.19 last year.
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Cash and Cash Equivalents: $21.6 million as of March 31, 2025.
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Inventory: $60.2 million, down 16.5% year-over-year.
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Cash Used in Operations: $23.1 million, compared to $16.8 million last year.
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Full Year Revenue Guidance: $465 million to $485 million.
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Full Year Adjusted EBITDA Guidance: Flat to up $10 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Purple Innovation Inc (NASDAQ:PRPL) delivered first-quarter results in line with revenue guidance and ahead of adjusted EBITDA guidance.
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Showroom channel revenue grew 7%, marking the fifth consecutive period of revenue growth, with comparable sales up 11%.
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Adjusted gross margins exceeded 40% for the fourth consecutive quarter, improving by 550 basis points compared to last year.
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The company announced a significant expansion of its partnership with Mattress Firm, expected to drive more than $70 million in incremental net revenue beginning next year.
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Purple Innovation Inc (NASDAQ:PRPL) launched the new Rejuvenate 2.0 mattress line, receiving positive initial feedback and increasing slot commitments across the wholesale channel by more than 60% year over year.
Negative Points
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First-quarter revenue of $104.2 million was down 13% compared to last year, primarily due to softness in wholesale and e-commerce channels.
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E-commerce sales declined by 8% year over year, reflecting challenges in conveying product benefits digitally.
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Wholesale channel sales were down 24% compared to last year, impacted by fewer doors and broad-based volume declines.
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The company faces potential annual cost impacts of approximately $10 million due to recent US tariff charges.
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Purple Innovation Inc (NASDAQ:PRPL) reported an adjusted net loss of $11.9 million for the first quarter, although this was an improvement from the previous year's loss.