Purple Innovation, Inc. - PRPL STOCK NEWS

Purple Innovation, Inc. (NASDAQ: PRPL) reported its Q4 and full-year results for 2022, highlighting a significant decrease in net revenue.

Q4 net revenue fell by 22.2% to $145.1 million, and full-year revenue decreased 20.7% to $575.7 million, largely due to changing consumer demand and reduced advertising expenditure. DTC revenue showed sharp declines, while gross margins improved to 35.0% in Q4. The company reported a net loss of $(70.2) million in Q4 and $(89.9) million for the year. However, operating losses improved significantly. Looking ahead, Purple projects 2023 revenue between $590-$615 million and anticipates better results as it launches new products and marketing strategies.

Purple Innovation, Inc. (NASDAQ: PRPL) will announce its 2022 financial results on March 16, 2023, at approximately 4:05 p.m. ET. Following this, a conference call is scheduled for 4:30 p.m. ET to discuss these results.

Interested parties can participate by calling (877) 425-9470 (domestic) or (201) 389-0878 (international). A live webcast will be available at investors.purple.com. A replay will be accessible until March 30, 2023, by calling (844) 512-2921 (domestic) or (412) 317-6671 (international) with the Conference ID: 13736855.

Coliseum Capital Management, the largest stockholder of Purple Innovation (NASDAQ: PRPL), has filed a lawsuit in the Delaware Court of Chancery challenging the validity of Purple's recently issued preferred stock. Coliseum claims this issuance violates the company's charter, altering the one-share, one-vote structure critical for fair elections at the 2023 Annual Meeting. Coliseum's action follows the nomination of five director candidates and alleges that the preferred stock issuance is a strategic maneuver by the Purple Board to maintain control. Coliseum urges a change in leadership to enhance corporate governance and shareholder value.

Purple Innovation, Inc. (NASDAQ: PRPL) has announced the issuance of Proportional Representation Preferred Linked Stock (PRPLS) to provide shareholders with enhanced voting power on the Board of Directors. Each holder will receive one PRPLS for every 100 shares of common stock owned, with 10,000 votes attached to each PRPLS. This mechanism aims to ensure proportional representation, allowing non-affiliated shareholders to effectively elect up to 55% of board members, addressing concerns over a single stockholder owning 45% of common stock. The PRPLS will trade alongside common stock and will have specific voting rights but no dividend rights.

Purple Innovation (NASDAQ: PRPL) has publicly addressed Coliseum Capital Management's bid to replace a majority of its Board of Directors. Coliseum, holding a 45% stake, plans to nominate five directors at the upcoming Annual Meeting. The Special Committee expresses disappointment, asserting that Coliseum’s proxy fight is not in the best interests of all shareholders. Coliseum's actions followed Purple's rejection of its buyout proposal of $4.35 per share, which has remained below current stock prices for 75 days. The company remains open to cooperation while emphasizing a strong management team and strategic direction.

Purple Innovation, Inc. (NASDAQ: PRPL) announced a public offering of 13,400,000 shares of its Class A common stock at $4.50 per share, aiming to raise approximately $60.3 million. The offering is expected to close on February 13, 2023, subject to customary conditions. Proceeds will primarily be used to pay down approximately $24.7 million in outstanding term loan debt, with remaining funds allocated for working capital and corporate purposes. Underwriters have a 30-day option to purchase an additional 2,010,000 shares. The offering is made under an effective shelf registration statement filed with the SEC.

Purple Innovation, Inc. (NASDAQ: PRPL) announced its intention to sell $50 million of Class A common stock in an underwritten public offering, with a potential $7.5 million overallotment option for underwriters. The proceeds will be used primarily to pay down approximately $24.7 million in outstanding term loan debt under its existing Credit Agreement, while the remainder will support working capital and general corporate needs. As of now, the company has no binding agreements for acquisitions. The offering follows an effective shelf registration statement filed with the SEC.

Purple Innovation, Inc. (NASDAQ: PRPL), known for its no-pressure mattresses, announced preliminary estimated results for the fiscal year 2022 ending December 31, 2022. The company expects net sales of approximately $574 million, slightly above its guidance range of $570 million to $590 million. However, it anticipates a substantial net loss between $97.5 million and $83.7 million. Adjusted EBITDA is likely to land at the lower end of guidance, approximately $2 million. Despite these results, CEO Rob DeMartini noted a positive sequential improvement in quarterly sales, though industry challenges, such as inflation and a promotional environment, pressured margins.

Purple Innovation, Inc. (NASDAQ: PRPL) addressed Coliseum Capital Management's amended Schedule 13D filed on January 17, 2023. The Special Committee of the Board appreciates Coliseum's investment but expresses disappointment at Coliseum's attempt to replace most of the Board shortly after a rejected buyout proposal. Coliseum, owning 44.7% of Purple, seeks control over all board appointments, which the Special Committee finds unacceptable. While committed to collaboration, the Committee aims to protect all shareholders' interests amidst these developments. Purple plans to file a proxy statement for the 2023 Annual Meeting, urging shareholders to review relevant documents upon availability.