Purple Innovation Inc. (PRPL) shares plummeted 25.57% in after-hours on Tuesday, November 09, 2021, and closed the daily trading at $14.29. However, in the regular trading session, PRPL’s stock gained 0.89%. PRPL shares have fallen 29.62% over the last 12 months, and they have moved down 1.49% in the past week. Over the past three months, the stock has lost 30.41%, while over the past six months, it has declined 37.03%.
Let’s discuss its recent news.
PRPL recent financial results
On November 9, 2021, Purple Innovation, Inc. (PRPL) reported its financial results for the third quarter ended September 30, 2021.
Q3 2021 financial highlights
- PRPL earned total revenue of $170.8 million in Q3 2021 compared to $187.1 million in the third quarter of 2020.
- In Q3 2021, the gross profit margin was 35.8% compared to 2% in the prior-year period.
- Total operating expenses were $67.6 million in Q3 2021 compared to $64.0 million in Q3 2020.
- It reported a net income of $2.1 million in Q3 2021 compared to a net loss of $87.2 million in Q3 2020.
- EBITDA was $2.4 million in Q3 2021compared to $83.5 million in Q3 2020.
- The Company had cash and cash equivalents of $83.6 million on September 30, 2021, compared to $123.0 million as of December 31, 2020.
FY 2021 financial guidance
For FY 2021, Purple Innovation is expecting,
- Net revenue in the range of $720 million and $740 million.
- Adjusted EBITDA in the range of $15 million and $25 million.
- Capital expenditure in the range of $55 to $60 million.
PRPL New Mattress Firm Contract
On November 8, 2021, Purple PRPL) signed a new Master Retailer Agreement with Mattress Firm, Inc. to expand the sales of Purple’s full assortment of sleep products within Mattress Firm and eliminate prior restrictions on Purple’s growth outside of Mattress Firm.
PRPL new appointments
On October 25, 2021, Purple Innovation, Inc. appointed Jack Roddy as Chief People Officer, with responsibility for the company’s human resources, company culture, talent acquisition and diversity, equity and inclusion efforts. Roddy has over 25 years of experience in human resources and organization development for many of the world’s best-known brands.
Also on August 24, 2021, PRPL announced that Chief Financial Officer Craig Phillips resigned from the company. The company hasn’t announced the replacement yet.
PRPL participation in the recent conference
Purple Innovation, Inc (PRPL) recently participated in the Raymond James 2021 Consumer Conference which was held on Tuesday, September 14, 2021. The company was presented virtually by Chief Executive Officer, Joe Megibow, and interim Chief Financial Officer, Bennett Nussbaum, during the event.
Conclusion
Due to poor Q3 financial performance, PRPL stock faced a massive decline in the after-hours on Tuesday. Let’s see how it commence Wednesday’s trading?
