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PURPLE Announces Second Quarter Financial Results
August 10,
2023 by HFBusiness Staff in Business Strategy, Industry 
Purple Innovation, Inc., a comfort innovation company known for creating the "World's First No Pressure™ Mattress," announced results for the second quarter ended June 30.
Second Quarter Financial Summary (Comparisons versus Second Quarter 2022)
Net revenue decreased 16.1% to $120.9 million compared to $144.1 million. Wholesale revenue decreased 15.5% and Direct-to-Consumer (DTC) revenue decreased 16.6%.
Gross margin decreased 210 basis points to 31.8% compared to 33.9%. Excluding discounts and transitional costs associated with the new product transition, second quarter 2023 adjusted gross margin was 38.6%
Operating expenses were $75.7 million, or 62.7% of revenue compared to $60.9 million, or 42.3% of revenue. Advertising spend increased 6.0% to $20.1 million, compared to $18.9 million.
Operating loss was $(37.3) million compared to an operating loss of $(12.1) million.
Net loss was $(37.5) million as compared to $(8.3) million. Adjusted net loss was $(21.1) million, or $(0.20) per diluted share as compared to $(8.8) million, or $(0.11) per diluted share.
EBITDA was $(31.3) million compared to $(8.0) million. Adjusted EBITDA was $(18.5) million compared to $(0.3) million.
Cash and cash equivalents were $26.9 million at June 30, 2023.
New, less restrictive debt facility signed on August 7, 2023, as disclosed in the second quarter 10-Q.
"This was an important quarter for Purple Innovation, marked by the largest product and brand refresh in the company's history as we introduced 11 all-new, innovative products supported by a more premium brand position," said Chief Executive Officer Rob DeMartini.
"This new 'Path to Premium Sleep' strategy, while not immediately evident in our topline results due to the mid-quarter timing of the launch and ongoing industry-wide pressures, demonstrated several positive indications to reinforce that we have set the right course for the next stage of growth for the Company.”
DeMartini concluded, “June, the first full month with our new product in-market, was the strongest month of 2023 with a revenue run rate up 18% to the first 5 months of the year, and we've seen that momentum continue into the third quarter. This budding momentum, along with the continued rollout of our new product with additional wholesale partners in the coming months, positions us to deliver improved results in the second half of the year.”