Alpine, Utah — Bed-in-a-box company Purple Innovation had sales of $285.8m in 2018. This is up markedly, by 45.2%, on the previous financial year.
However, adjusted EBITDA across the business in 2018 fell by 75.4%. The loss reached $10.7m in the 2018 financial year.
Earnings fell in 2018 as a result of increased freight and product costs, and and also manufacturing inefficiencies, the company said. A greater proportion of sales were made on a wholesale pricing basis to direct customers in the fourth quarter. Other discount rates also reduced net revenue.
The company also found that the costs of its ‘white glove’ delivery service for heavier spring-core mattresses hit the numbers in the final quarter. This includes installation and the removal of the old mattress.
CEO Joe Megibow said his company was tackling the loss and had made ‘identified inefficiencies in manufacturing, supply chain, and delivery process and rightsizing our headcount’.
The company is opening more stores, and also emphasising its premium position in the market, he said.
|Purple Innovation Numbers 2018 ($m)|