LEHI, Utah, March 26, 2020 /PRNewswire/ -- Purple Innovation,
Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known
for creating the "World's First No Pressure ™ Mattress," today
announced it is withdrawing its full year 2020 revenue and adjusted
EBITDA guidance due to the heightened uncertainty related to the
full potential impact arising from the COVID-19 outbreak.
"Since we provided our outlook a couple of weeks ago, COVID-19
has rapidly spread throughout the U.S.," said Joe Megibow, CEO of Purple Innovation, Inc.
"In response to this quickly evolving situation, several
states have mandated that all non-essential businesses close
temporarily to slow the spread of the virus. As of today,
more than half of our wholesale doors are currently closed, and
more may close over the coming weeks. In compliance with the
mandated shelter-at-home decision in California, we have temporarily closed our
three showrooms in that state. We continue to serve our customers
through our digital channel, and demand for our premium,
differentiated product offering online remains encouraging. Our
year-to-date direct to consumer business remains at a level above
last year's same time-period sales, providing immediate cash for
our operations. To adapt to the expected temporary decline in
wholesale and our own showroom demand, the Company has taken
advantage of its vertically integrated business model to adjust its
production schedule to match current demand as well as temporarily
reduce its current labor costs. Further, all of the Company's
Senior Executives have deferred 25% of their cash compensation and
the Board of Directors has deferred its cash compensation during
this period of uncertainty. It is difficult to predict how long
this unprecedented pandemic will persist and its full impact, and
due primarily to the uncertainty and current downturn in brick and
mortar sales, we've decided to withdraw our 2020 guidance."
Megibow continued, "The health and wellbeing of our team members
is our top priority. To safeguard our employees and communities, we
have enabled employees to work from home where possible. For roles
that require employees to be on-site, such as our manufacturing
facility and distribution center, we are practicing social
distancing and increasing sanitizing standards." In response to the
uncertainty that exists, Mr. Megibow stated, "To ensure business
continuity, we are taking proactive steps to carefully manage cash
and be able to respond quickly to circumstances that change daily.
I am confident in the resiliency of our organization to manage
through the challenges facing our business and industry and emerge
stronger from these unprecedented times."
About Purple
Purple is a digitally-native
vertical brand with a mission to help people feel and live better
through innovative comfort solutions. We design and manufacture a
variety of innovative, premium, branded comfort products, including
mattresses, pillows, cushions, frames, sheets and more. Our
products are the result of over 25 years of innovation and
investment in proprietary and patented comfort technologies and the
development of our own manufacturing processes. Our proprietary gel
technology, Hyper-Elastic Polymer®, underpins many of our comfort
products and provides a range of benefits that differentiate our
offerings from other competitors' products. We market and sell our
products through our direct-to-consumer online channels,
traditional retail partners, third-party online retailers and our
owned retail showrooms. For more information on Purple, visit
purple.com.
Forward Looking Statements
Certain statements made in
this release that are not historical facts are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
Such forward-looking statements include but are not limited to
statements about our outlook and expectations for our financial
results for the fiscal year ended December
31, 2020, including EBITDA, adjusted EBITDA, net revenue and
gross margin rate, our ability to create sustained profitability
and shareholder value, the performance of our digital channel, cash
generated by our direct-to-consumer business, our ability to manage
cash and respond to changing circumstances, and the effects of and
our responses to the COVID-19 outbreak. Forward-looking statements
provide current expectations or forecasts of future events or
determinations. These forward-looking statements are not guarantees
of future performance, conditions or results, and involve a number
of known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside the Company's control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Factors
that could influence the realization of forward-looking statements
include the risk factors outlined in the "Risk Factors" section of
our Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 9, 2020.
The Company does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law
Investor Contact:
Brendon Frey, ICR
brendon.frey@icrinc.com
203-682-8200
Media Contact:
Alecia Pulman, ICR
purplePR@icrinc.com
646-277-1200
Purple Innovation, Inc.
For information regarding
Purple products, please contact:
Savannah
Hobbs
Director of Purple Communications
savannah@purple.com
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SOURCE Purple Innovation, Inc.