Purple Innovation reports Q4 adjusted EPS (15c), consensus (18c)

Reports Q4 revenue $145.9M, consensus $145.56M. “The fourth quarter represented an encouraging finish to 2023 as sales finished within our guidance range and increased year-over-year for the first time in eight quarters,” said CEO Rob DeMartini. “Throughout last year we made meaningful progress capturing market share and repositioning Purple as a premium brand despite ongoing industry headwinds. The launch of our innovative new mattresses and new marketing campaign fueled improved sales trends across all channels in the second half. Backed by marketing efficiencies, fourth quarter profitability was in-line with expectations highlighted by positive operating income in the month of December.” DeMartini continued, “Looking ahead, we will continue to implement the strategic initiatives that are clearly resulting in operating and financial improvements. Specifically, our focus is on further share gains and enhancing earnings by driving productivity, efficiency and innovation across the business. This includes improving showroom and wholesale door velocity through new revenue initiatives and cost controls. Increasing conversion rates on our ecommerce site is also a priority through ongoing testing and optimization. At the same time, earnings expansion should come from price increases, product mix shifts and manufacturing improvements combined with more efficient ad spending focused on existing mattress shoppers. While near-term industry challenges persist, the foundation is now in place for long-term, profitable growth.”