LEHI, Utah, July 19, 2021 /PRNewswire/ -- Purple
Innovation, Inc. (NASDAQ: PRPL) ("Purple" or the "Company"), a
leader in comfort innovation and the creator of the renowned
Purple® Mattress, today announced an update on the status of its
production levels.
Purple previously announced that following an accident and
resulting safety improvements involving its Mattress Max™ machines,
the Company experienced production challenges caused by
unanticipated mechanical and maintenance issues encountered
bringing the machines back online. The Company projected to have
production fully back online by mid-July after approximately 10
weeks of significantly reduced production levels, resulting in
shipment backlogs that would impact both second and third quarter
revenue.
"I am incredibly proud with the work we've done to continue to
create a safer operating environment in our manufacturing
facilities," said Joe Megibow, Chief
Executive Officer. "Over the past several weeks, our team has made
significant progress towards restoring our production to full
capacity. The isolated manufacturing challenges exhibited across
the Mattress Max machines have all been resolved, and we have
ramped production levels back up to 85% to 90% of pre-incident
levels. With some additional tuning we anticipate being at planned
production levels in approximately one week and are aggressively
hiring against these levels. We remain confident that we will be
out of backlog by the end of August."
As previously announced, management anticipates providing
revised full year guidance when it reports second quarter 2021
results.
About Purple
Purple is a digitally-native vertical
brand with a mission to help people feel and live better through
innovative comfort solutions. We design and manufacture a variety
of innovative, premium, branded comfort products, including
mattresses, pillows, seat and back cushions, frames, sheets and
more. Our products are the result of over 25 years of innovation
and investment in proprietary and patented comfort technologies and
the development of our own manufacturing processes. Our proprietary
gel technology, Hyper-Elastic Polymer®, underpins many of our
comfort products and provides a range of benefits that
differentiate our offerings from other competitors' products. We
market and sell our products through our direct-to-consumer online
channels, traditional retail partners, third-party online retailers
and our owned retail showrooms.
Forward Looking Statements
Certain statements made in this release that are not historical
facts are "forward looking statements" within the meaning of the
"safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
include but are not limited to statements relating to the impact of
recent production challenges on our operating results for the
second and third quarters, our ability to restore full production
capacity, the timing of when we will return to planned production
levels, our ability to hire to meet anticipated production levels,
and the timing of when we will be out of backlog. Statements based
on historical data are not intended and should not be understood to
indicate the Company's expectations regarding future events.
Forward-looking statements provide current expectations or
forecasts of future events or determinations. These forward-looking
statements are not guarantees of future performance, conditions or
results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important factors, many of
which are outside the Company's control, that could cause actual
results or outcomes to differ materially from those discussed in
the forward-looking statements. Factors that could influence the
realization of forward-looking statements include, among others:
uncertainties regarding the extent and duration of the impact of
the COVID-19 pandemic on many aspects of our business, operations
and financial performance; disruptions to our manufacturing
processes and capacity; delays in bringing production capacity to
expected levels; delays in bringing new and existing Mattress Max
machines online and rebuilding capacity; changes in economic,
financial and end-market conditions in the markets in which we
operate; changes in consumer preferences and demand; fluctuations
in raw material prices and labor costs and related impact on
margins; the financial condition of our customers and suppliers;
competitive pressures, including the need for technology
improvement, successful new product development and introduction;
changes in our relationships with wholesale partners; and the risk
factors outlined in the "Risk Factors" section of our Annual Report
on Form 10-K filed with the Securities and Exchange Commission (the
"SEC") on March 11, 2021, as amended
by our Annual Report on Form 10-K/A filed with the SEC on
May 10, 2021 and in our Quarterly
Report on Form 10-Q filed with the SEC on May 17, 2021. The Company does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Investor Contact:
Brendon
Frey, ICR
brendon.frey@icrinc.com
203–682–8200
Purple Innovation, Inc.
Misty Bond
Director of Purple Communications
misty.b@purple.com
385-498-1851
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SOURCE Purple Innovation, Inc.