Digitally native sleep brand Purple Innovation, Inc. reported as part of its Q3 results that its direct-to-consumer (D2C) revenue surged 97.5 percent and its wholesale revenue rose 6.9 percent compared to Q3 2019, according to an announcement.
“The investments we made earlier this year to expand our manufacturing capacity helped support strong year-over-year growth in our direct-to-consumer mattress business, as well as a resurgence in our wholesale channel as our retail partners experienced improved store traffic,” Chief Executive Officer Joe Megibow said in the announcement.
Megibow noted that the company kept witnessing formidable increases in sheets, pillows and seat cushions, highlighting the progress the company made in creating greater awareness and fueling demand for its high-end categories outside of mattresses.
Purple’s gross margin for Q3 rose to 47.2 percent from 45 percent in the year ago period. Its 220-basis point rise in gross margin year-over-year was mainly due to the higher share of direct-to-consumer channel revenue, which the firm says has higher gross margins than wholesale.
The company reported that operating expenses were 34.2 percent of net revenue for Q3 in contrast to 35.7 percent for the year ago period.
Its marketing and sales expense as a portion of net revenue fell to 27.4 percent from 29 percent in 2019 because of “creative efforts” to bolster efficiency in marketing and decrease advertising expenses.
As for its overall results, Purple reported adjusted net income of 27 cents per diluted share on net revenue of $187.1 million.
Shoppers will have the ability to buy Casper’s mattresses and sleep items at Nordstrom.com and in select Nordstrom retail locations beginning this November.
Casper will initially be available at 31 of the merchant’s full-line stores.