LEHI, Utah — Mattress provider Purple Innovation saw a year-over-year increase in net revenue for the fourth quarter ended Dec. 31, 2023, the first time in eight quarters, although revenue for the year declined.
Net revenue was $145.9 million, an increase of 1.1% compared with the same period last year and an increase of 4.2% compared with the third quarter this year. Direct-to-consumer revenue increased at a higher rate, up 4.3% compared with the previous year.
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This offset wholesale revenue, which dropped 2.7% compared with Q4 2022, although it was up 6.7% compared with Q3 2023.
The company showed a Q4 operating loss of $16.2 million compared with a loss of $11.9 million last year. And its net loss for the period showed significant improvement year over year, at a loss of $18.3 million compared with a loss of $71.7 million last year.
For the year, net revenue was $510.5 million, a decrease of 10.9% compared with 2022. Both DTC and wholesale revenue numbers decreased in a year-over-year comparison.
Fiscal 2023 operating loss was $113.7 million, vs. an operating loss of $42.8 million in fiscal 2022. Net loss for the year likewise increased, at a loss of $120.8 million vs. a loss of $92.5 million in the previous year.
“The fourth quarter represented an encouraging finish to 2023 as sales finished within our guidance range and increased year-over-year for the first time in eight quarters,” said CEO Rob DeMartini. “Throughout last year we made meaningful progress capturing market share and repositioning Purple as a premium brand despite ongoing industry headwinds. The launch of our innovative new mattresses and new marketing campaign fueled improved sales trends across all channels in the second half.”
He added, “Looking ahead, our focus is on further share gains and enhancing earnings by driving productivity, efficiency and innovation across the business,” noting that this includes improving showroom and wholesale door velocity and increasing conversion rates on the e-commerce site.
DeMartini said earnings expansion is expected to come from price increases, product mix shifts and manufacturing improvements combined with more efficient ad spending.
For its 2024 outlook, the company said it expects full-year revenue to be in the range of $540 million to $560 million, an increase in the mid- to high-single digit range over 2023.