PRPL - Purple Innovation: It Can Survive The Short-Term Pandemic
Investment thesis
Purple Innovation (PRPL) business will be hit because of the current coronavirus pandemic and make its path to profitability uncertain in the near term. We also believe that the pandemic will hurt many of its 175 competitors in the mattress-in-a-box industry. Therefore, while Purple's revenue will decline in 2020, we expect its strong balance sheet and strong brand to cushion it into the future.
Introduction
Purple Innovation is a popular company that manufactures and sells mattresses. The company sells its mattresses and sleeping accessories through the internet. It has also started