Purple Innovation Inc. reported net income of $20.9 million in the first quarter of fiscal 2021, compared with net income of $28 million in the first quarter of 2020. Net sales increased 52.3% to $186.4 million. The sales increase was driven by strong growth for all product lines in both the direct-to-consumer and wholesale channels, according to a news release. For the first quarter of fiscal 2021, DTC revenue increased 54.8% and wholesale revenue increased 47.6%.
DTC online sales
Based on first-quarter results, the company raised its 2021 outlook and now expects full-year sales to be between $860 million and $900 million, up from its previous range of $840 million to $880 million. The new range represents an increase of 33% to 39% over 2020 results. The company anticipates spending about $20 million on the continued buildout of a Georgia manufacturing plant in Georgia.
“Our first-quarter results meaningfully exceeded expectations and represent a great start to 2021,” said Joe Megibow, chief executive officer of the Lehi, Utah-based mattress maker. “We experienced strong demand early in the year, particularly in our digital channel, followed by a sharp acceleration in our wholesale business as the first quarter progressed. Importantly, our recent capacity expansion has us well-positioned to take advantage of the strong wholesale momentum we are experiencing as brick-and-mortar traffic further approaches prepandemic levels and current consumer spending benefits from recent government stimulus.”