Purple Innovation (PRPL) Misses Q3 EPS by 10c, Guidance Falls Short of Consensus
Purple Innovation (NASDAQ: PRPL) reported Q3 EPS of $0.07, $0.10 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $170.8 million versus the consensus estimate of $199.53 million.
GUIDANCE:
Purple Innovation sees FY2021 revenue of $720-740 million, versus the consensus of $821 million.
- Based on third quarter results and performance in the fourth quarter to-date, the Company currently expects 2021 net revenue to be between $720 and $740 million, representing an increase of 11% to 14% over 2020 results and an increase of 68% to 73% over the 2019 results. DTC revenue is projected to reach approximately $475 million for 2021, about flat to 2020 and an increase of 79% compared to 2019.
- Based on the Company's revised sales outlook, additional pressure on gross margins from rising input cost and an even greater channel mix shift toward wholesale, and the planned increase in marketing investments during the fourth quarter, Adjusted EBITDA for the full year 2021 is now expected to be between $15 million and $25 million.
- The Company expects capital expenditures for 2021 to be in the range of $55 to $60 million, as the Company invests in expanding production capabilities in the Georgia manufacturing facility and in additional showrooms.
- Year-end liquidity, inclusive of availability under the Company's existing line of credit, is anticipated to be between $85 million and $95 million.
- The Company believes it is on track to meet its target of 400 to 500 incremental doors by the end of 2021, bringing the total to nearly 2800 doors by year end. The Company also believes that it is on track to reach approximately 3,500 wholesale doors by the end of 2022.
- The Company expects to end 2021 with 28 showroom locations and to add more than 30 locations in 2022. The Company anticipates average annual sales per door of about $2 million and a payback period of approximately 15 months on an initial investment of about $600,000.
For earnings history and earnings-related data on Purple Innovation (PRPL) click here.