Purple Innovation Inc. reported a net loss of $2.1 million in the fourth quarter of fiscal 2020, compared with a net loss of $12.7 million in the same quarter of 2019.
Purple’s Full Year
Net sales for the quarter at the Lehi, Utah-based mattress maker increased 39.9% to $173.9 million, but missed the Zacks Consensus Estimate of $196.19 million. Direct-to-consumer revenue grew 57% and the wholesale channel was up 9%. Operating income increased 171.1% to $7.5 million.
The company swung to a profit for full-year fiscal 2020 with net income of $10.9 million, compared with a full-year net loss of $12.4 million in 2019.
Net sales grew 51.4% to $648.5 million in 2020, with DTC revenue up 83% and the wholesale channel up slightly due to impacts from the pandemic. Operating income increased 339.3% to $71.2 million, year over year.
The company’s full-year 2021 forecast predicts revenue in the range of $840 million to $880 million, an increase of 30% to 36% over 2020 results.
“We concluded an amazing year of profitable growth for Purple with a strong fourth-quarter performance,” said Joe Megibow, chief executive officer. “Despite the many challenges in 2020, our teams leaned in and executed successfully, including this holiday season, identifying and capitalizing on market opportunities while at the same time investing in future growth. Fiscal 2021 is off to a solid start, and we believe we are well-positioned to build on our recent accomplishments and intend to continue investing in capacity expansion, innovation and company showrooms to further expand our market share for years to come.”