Digitally native mattress company Purple Innovation posted a 54.8 percent surge in direct-to-consumer (D2C) revenue and a 47.6 percent surge in wholesale revenue from Q1 2020 to Q1 2021 as the mattress brand saw formidable demand at the start of 2021.
In announcing Purple’s Q1 2021 results on Monday (May 17), CEO Joe Megibow said the company “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.”
Purple reported that net revenue surged by more than 50 percent from $122.4 million in Q1 2020 to $186.4 million in Q1 2021. The company reported that operating expenses as a percent of net revenue were essentially flat — 37.9 percent in Q1 2021 in contrast to 37.3 percent in Q1 2020.
It also reported that adjusted net income soared from $4.6 million, or 8 cents per diluted share, in Q1 2020 to $12 million, or 17 cents per diluted share, in Q1 2021.
Purple said it was raising its 2021 outlook based on its Q1 results. To that end, the company now anticipates full-year 2021 net revenue to range from $860 million to $900 million. By contrast, Purple’s previous range was between $840 million and $880 million.
“Looking ahead, our plans are firmly around providing customers with innovative comfort solutions through our omni-channel retail strategy. This includes upgrading our digital capabilities in order to better integrate our multiple product categories and enhance the online shopping experience, accelerating the rollout of Purple showrooms, and strengthening our wholesale relationships,” Megibow said in the announcement.
Purple also said it anticipates capital expenditures for 2021 to be between $45 million and $50 million.
The news comes as Sleep Number saw its sales climb by 20 percent to $568 million for the three months concluding on April 3, headed up by a 116 percent jump in online sales. “Our digital ecosystem is enabling Sleep Number to efficiently acquire new customers,” CEO Shelly Ibach said on the company’s conference call.
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