Shares of Purple Innovation (NASDAQ:PRPL) were jumping over 12% in midday trading after the bedding maker posted higher than expected sales and profits.
Considering the ruined state of retail these days due to the COVID-19 pandemic, Purple's ability to grow sales 46% in the first quarter, generating a 140% increase in net profit, is a remarkable achievement.
It looks like the streak is going to continue, as CEO Joe Megibow told analysts, "During April, we experienced a dramatic spike in online demand for our lineup of mattresses, as well as our ancillary products, led by seat cushions, pillows, and sheets," leading to triple-digit percentage increases in direct-to-consumer sales.
The online maker of mattresses, pillows, and cushions really didn't have to miss a beat; whereas other companies needed to switch their focus to their e-commerce platforms to maintain operations, Purple Innovation is already digitally native and only needed consumers to adjust to the new norm of buying various products online.
That, of course, is in Purple's wheelhouse, and sales surged to $122.4 million versus $83.6 million a year ago. While operating expenses did rise in the quarter, operating income still jumped 56%, leading to net income of $8.8 million, or $0.11 per share, compared to a $130 million loss, or $0.02 per share, last year.
Purple Innovation previously withdrew its guidance, though, and said it is not providing an update at the moment.