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Thedecrease was primarily due to changing demand for home related products, inflationary pressure on discretionary consumer spending and an intentional reduction in advertising spend which was down 77.7% compared with a year ago.
Gross profit fell 21.6% to $50.7 million, with gross profit margin expanding 30 basis points to 35%.
Operating loss narrowed to $(11.1) million from $(31.1) million last year.
Operating expenses fell 35.4% Y/Y to $61.9 million. Operating expenses were 42.6% of net revenue, versus 51.4% in the prior year.
EBITDA was $156.3 million compared to $(20) million last year. Adjusted EBITDA was breakeven versus $(23.4) million a year ago.
Adjusted EPS was $(0.10), missing the Street view of $(0.06).
The company held $41.8 million in cash and equivalents as of Dec. 31, 2022.
Inventories at December end were $73.2 million, a decrease of 25.8% Y/Y.
Outlook: Purple Innovation sees Q1 sales of $105 million versus the consensus of $137.13 million. Adjusted EBITDA of $(9.5) million.
PRPL sees FY23 revenue of $590 million – $615 million against the consensus of $589.37 million. It expects FY23 adjusted EBITDA of $13 million – $17 million.
Price Action: PRPL shares closed higher by 1.54% at $3.30 on Thursday.
