Q2 2024 Purple Innovation Inc Earnings Call Transcript
Key Points
- Purple Innovation Inc (PRPL) achieved a 2% year-over-year increase in total sales for Q2 2024.
- Showroom revenues increased by 10.6%, driven by higher average selling prices and a shift to higher-priced Luxe collections.
- Gross margin improved significantly, up more than 1,000 basis points year-over-year, reaching 40.7%.
- Operational efficiency improvements and supplier diversification efforts contributed to cost savings and margin improvements.
- The company reaffirmed its adjusted EBITDA outlook for 2024, despite lowering top-line guidance.
- Direct-to-consumer revenues were down, with e-commerce revenue declining by 5.7% in Q2 2024.
- The company lowered its full-year 2024 net revenue outlook by $50 million due to deteriorating industry trends.
- Adjusted net loss for Q2 2024 was $13.8 million, although this was an improvement from the previous year's loss.
- Marketing and website personalization efforts have not yet yielded meaningful improvements in e-commerce conversion rates.
- The challenging market environment is expected to persist, impacting sales and requiring continued cost management.
Good afternoon, ladies and gentlemen, and welcome to the Purple Innovation second-quarter 2024 earnings conference call. (Operator Instructions)
It is now my pleasure to introduce your host, Cody McAlester of ICR. Please go ahead, sir.
Thank you for joining Purple Innovation's second-quarter 2024 earnings call. A copy of our earnings press release is available on the Investor Relations section of Purple's website at www.purple.com.
I would like to remind you that certain statements we will make in this presentation are forward-looking statements. These forward-looking statements reflect Purple Innovation's judgment and analysis only as of today. And actual results may differ materially from current expectations based on a number of factors affecting the company's business. Accordingly, you should not place undue reliance on these forward-looking statements.
For a more thorough discussion of the risks and uncertainties associated
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