PRPL - Purple Innovation pops on better-than-feared results

Purple Innovation (NASDAQ:PRPL +19.9%) soared in early trading on Wednesday after the retailer blasted past beaten-down consensus marks with its Q1 earnings report. Revenue fell 23% during the quarter against the tough pandemic comparable and stimulus boost. Gross margin was 36.1% of sales vs. 46.9% a year ago. The decline was primarily attributable to elevated level of labor and overhead costs coupled with a larger than expected reduction in higher margin e-commerce sales. An operating loss of $18.4M was recorded during the quarter compared to operating income of $16.9M a year ago. Purple Innovation (PRPL) said it taking a more cautious view for the balance of the year due to economic and post-pandemic headwinds that are expected to continue, such as from the effects of inflation and changes in consumer spending patterns. PRPL expects full year revenue to be between $650M and $690M vs. $756M consensus and a prior view

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Purple Innovation pops on better-than-feared results