Purple Innovation, Inc. (PRPL) stock prices were down by -1.32% shortly after market trading commenced on June 29th, 2021, bringing the price up to USD$27.58 early on in the trading day.
Modified Financial Guidance
The company recently modified its financial guidance for the upcoming quarters after experiencing technical problems after an accident and subsequent safety upgrades. Various parameters were lowered or withdrawn after PRPL had issues getting machinery back online. Revenues for the second quarter of 2021 were adjusted from USD$205 million to somewhere between USD$175 million and USD$185 million. Adjusted EBITDA guidance that was offered on May 17th, 2021 was fully withdrawn.
Production Levels Slashed
Production levels are expected to be significantly lower than expected for a ten-week period, causing shipment backlogs that will affect second and third-quarter revenue. Production is expected to return to full operation by the middle of July 2021. Full-year guidance has also been revoked as the company conducts a review of its production issues. Revised guidance is forecasted to be offered with second-quarter earnings reports.
Product Portfolio Expansion
June 15th, 2021 saw the company announce the expansion of its existing pillow product portfolio with the addition of the Purple Harmony Pillow and the Purple TwinCloud Pillow. The former will be available in additional sizes to fit every comfort level, while the latter features cooling, durable, and adjustable support improvements to improve the quality of sleep.
The Purple Harmony Pillow
The Purple Harmony Pillow has received overwhelmingly positive feedback from consumers and is now available in a new Low size, in addition to its existing Medium and Tall sizes. The pillow employs Grid Hex technology, which facilitates persistent airflow through more than 2,000 open air channels. This helps keep users cool through the night, while instantly adapting to the head and neck.
The Purple TwinCloud
The Purple TwinCloud serves as a down-like pillow that is moldable and has plush support. It has an adjustable unzip-and-flip design that allows for modifications of support levels for a more personalized resting experience. Fluffy, gel fibers that fill the pillow counter easily to the head and neck, enabling the pillow to adapt to any sleeping position.
Future Outlook for PRPL
Armed with the pending commercialization and proliferation of its new products in a market that is ripe for the taking, PRPL is poised to continue its trajectory of success. The company is keen to usher in further growth as it continues to push for increased market penetration. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
