- Lila Innovation Inc PRPL reported a 22.2% decline in revenue in the fourth quarter of FY22 year-over-year to $145.12 million, beating the consensus of $144.2 million.
- The The decline was primarily due to changing demand for household products, inflationary pressures on consumer discretionary spending and a deliberate reduction in advertising spend, which fell 77.7% year-on-year.
- Wholesale sales were up 0.3% year over year, and direct-to-consumer (DTC) sales were down 34.5%.
- Gross profit fell 21.6% to $50.7 million, with gross profit margin increasing 30 basis points to 35%.
- Operating loss decreased to $(11.1) million from $(31.1) million in the prior year.
- Operating expenses fell 35.4% year over year to $61.9 million. Operating expenses represented 42.6% of net sales, up from 51.4% a year earlier.
- EBITDA was $156.3 million compared to $(20) million last year. Adjusted EBITDA was flat versus $($23.4) million a year ago.
- Adjusted EPS was $(0.10), missing Street View of $(0.06).
- The Company held $41.8 million in cash and cash equivalents as of December 31, 2022.
- Inventories were $73.2 million at the end of December, down 25.8% year over year.
- outlook: Purple Innovation reports Q1 revenue of $105 million versus consensus of $137.13 million. Adjusted EBITDA of $(9.5) million.
- PRPL sees FY23 revenue of $590 million – $615 million versus consensus of $589.37 million. Adjusted EBITDA for FY23 is expected to be between $13 million and $17 million.
- Price promotion: PRPL shares closed up 1.54% at $3.30 on Thursday.
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