Purple Innovation (NASDAQ: PRPL) reported Q2 EPS of $0.05, $0.07 worse than the analyst estimate of $0.12. Revenue for the quarter came in at $182.6 million versus the consensus estimate of $176.99 million.

"Following a very good start to 2021, demand for the Purple brand has remained strong especially in our wholesale channel as consumers are increasingly returning to shopping brick and mortar retail," said Joe Megibow, Chief Executive Officer. "Unfortunately, our recent performance was impacted by isolated manufacturing challenges that limited our ability to fulfill a meaningful portion of demand during the second quarter. While this headwind carried into the third quarter, I am pleased to report that we exited the month of July with production back at planned levels and more importantly, a safer operating environment in our manufacturing facilities."

Megibow continued, "We are excited to be moving back into a position that allows us to fully leverage the power of our vertically integrated manufacturing platform and capitalize on the significant growth prospects that exist for our business. Our proprietary comfort technologies have disrupted the mattress industry and led to strong share gains in the premium category. Looking ahead, we see a long runway for growth as we continue to innovate our mattress and non-mattress product offerings, expand our distribution through partner and owned retail and enhance our digital capabilities to improve traffic, conversion and repeat business. We are confident in delivering a solid finish to 2021 and progressing towards our long-term targets of $2 billion to $2.5 billion in annual net revenue and mid-teens adjusted EBITDA margins over the next three to five years."

GUIDANCE:

Purple Innovation sees FY2021 revenue of $820-850 million, versus the consensus of $821.03 million.

Based on second quarter results combined with the Company's projected late August timing for exiting the current backlog position created by the isolated production issues, Purple currently expects full year 2021 net revenue to be between $820 million and $850 million. The new range represents an increase of 26% to 31% over 2020 results and an increase of 81% to 98% over the 2019 results. Due to the inventory constraints that are expected to last until late August, the Company anticipates a significant portion of its revenue growth in the second half of the year will occur in the fourth quarter.

Considering the second quarter results, the impact on third quarter margins from the isolated production issues, and recent trends indicating an even greater channel mix shift toward wholesale over the remainder of the year, adjusted EBITDA is now expected to be between $78 million and $88 million.

For earnings history and earnings-related data on Purple Innovation (PRPL) click here.