Lehi, Utah – Sales at bed-in-a-box company Purple Innovation were up 46.4% in the first quarter of 2020 and Q2 looks good for the company, partly because of coronavirus lockdowns in the US.
Coronavirus drives online sales at Purple
CEO Joe Megibow explained: 'We entered the new year with great momentum in our business and strategies in place to build on our recent performance. The outbreak of coronavirus in mid-March significantly disrupted our plans, particularly for our wholesale channel.'
However, people in the US sheltering at home started shopping for mattresses online. He explained that the company moved the majority of its time and resources to its digital channel to capitalise on the accelerated shift towards online purchasing.
Megibow added that the company could change its direction quickly because it is vertically integrated, with entirely domestic production facilities.
In the quarter, sales were $122.4m and, compared with the period in 2019, adjusted EBITDA across the business rose 71.0%. It reached $10.6m in the first quarter of 2020.
Unlike many other companies, Purple is optimistic for the second quarter of the year because of the strong start in online sales in April.
Direct to consumer orders increased by more than 170% to about $54m in April 2020, Megibow added. This was driven by mattresses, pillows, sheets and seat cushions. The company has ended staff furlough to meet demand. The company said it expects to bring on more production capacity by the end of May.