Mattress producer Purple Innovation said that second-quarter sales were well below last year’s second quarter. Still the company said a major product launch during the quarter should lead to an improved second half of 2023.
Sales for the quarter ended June 30 totaled $120.9 million, down 16.1% from $144.1 million in the same quarter last year. The company also recorded a net loss of $37.5 million or 36 cents per share, compared with a loss of $8.3 million or 10 cents per share in the second quarter of 2022.
In addition, gross margin fell to 31.8% from 33.9% a year earlier.
CEO Rob DeMartini said the product launch, which included 11 new items and a more premium brand positioning, was the largest in the company’s history. He noted that June — the first full month the new products were in the marketplace — was the strongest month so far in 2023.
“This new ‘Path to Premium Sleep’ strategy, while not immediately evident in our topline results due to the mid-quarter timing of the launch and ongoing industry-wide pressures, demonstrated several positive indications to reinforce that we have set the right course for the next stage of growth for the company,” DeMartini said. “We’ve seen that momentum continue into the third quarter. 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.”
For the six months ended June 30, sales totaled $230.2 million, down 19.9% from $287.3 million in the first half of 2022. The six-month net loss totaled $60.8 million or 60 cents per share. That compares with a loss of $21.8 million or 29 cents per share in the first half of 2022.
