Lehi, Utah – Purple, a bed-in-a-box company, had total sales of $143.2m in the first quarter of 2022, down 23.2% on the same period last year.
Purple hit by changing consumer patterns in Q1
EBITDA across the business fell by 138.1% to a negative $10.6m in the first quarter of 2022.
The company said that its direct-to-consumer sales fell by 31.5% in the quarter, and that there was a 6.3% fall in revenues from the wholesale channel.
'These results represent a building block towards re-establishing Purple as a profitable growth company and creating a stronger foundation that will move us towards our long-term plans,' said CEO Rob DiMartini.
DiMartini said that he thinks things will get better in the second half of the year. '[The business faces] evolving economic and post-pandemic headwinds such as a shift in consumer buying patterns from online to in-store.'
The numbers were down in comparison with the first quarter of 2021 because that quarter had a spike in demand, driven by economic stimulus and high levels of consumer demand. Margins were hit by a higher wage bill and overhead costs.
