Utah, US – Net revenue at mattress maker Purple Innovation was down by 16.1% in the second quarter of 2023, falling from $144m to $121m quarter-on-quarter. The decline in revenues from its direct-to-consumer business dropped by 16.6%, slightly higher than the 15.5% fall in its wholesale channel.
EBITDA was down sharply, from -$8.0m in the 2022 quarter to -$31.3m in the quarter this year. Quarterly operating expenses were up from $61m last year to $76m this. The rise included a 6% increase in advertising spend, from $18.9m to $20.1m.
The company has also reduced its outlook for the rest of the year, in the light of first half results and a more cautious view of demand in the second half. It now expects net revenue in the range $560m to $590m for the full year.
CEO Rob DeMartini described it as an important quarter for the company. “[It was] 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.”
While the new strategy is not immediately evident in the top line results as the launch was in the middle of the quarter and ongoing industry-wide pressures, DeMartini said, there were positive indications. “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 five months of the year, and we’ve seen that momentum continue into the third quarter,” he said.
“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.”
