Purple Innovation reports Q3 adjusted EPS (18c), consensus (2c)

Reports Q3 revenue $140M, consensus $160.41M. Gross margin was 33.8% compared to 41.3% in 3Q22 and 30.1% in 2Q23. “Our third quarter top-line performance demonstrates that our Path to Premium Sleep strategy is gaining traction,” said CEO Rob DeMartini. “Since launching our innovative new mattresses and enhanced brand campaign in May and converting the majority of our retail partner floor sets to our new premium and luxury collections over the past several months, we’ve seen a steady improvement in demand for Purple mattresses despite ongoing industry softness. 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.”