PRPL

Purple Innovation Inc

Consumer


Presented:12/01/2020
Price:$29.62
Cap:$1.08B
Current Price:$0.91
Cap:$0.10B

Presented

Date12/01/2020
Price$29.62
Market Cap$1.08B
Ent Value$1.05B
P/E RatioN/A
Book Value$0.77
Div Yield0%
Shares O/S36.63M
Ave Daily Vol1,428,395
Short Int6.01%

Current

Price$0.91
Market Cap$0.10B
Purple Innovation, Inc. engages in the design and manufacture of comfort technology products. It offers mattresses, bed pillows, seat cushions, mattress protector, and bamboo sheets. The company was founded by Terry V. Pearce and Tony M. Pearce in 1989 and is headquartered in Lehi, Utah.

Publicly traded companies mentioned herein: Casper Sleep Inc (CSPR), Purple Innovation Inc (PRPL)

Highlights

The presenter is long shares of Purple Innovation Inc (PRPL), the vertically integrated DTC bed-in-a-box mattress brand. He believes we are in the early stages of a secular shift from buying mattresses in-person to showcasing/ordering them online. PRPL is the only player in this market that has shown an ability to run a profitable business, partially due to being a vertically integrated manufacturer. Management believes that their sleeping experience and their gel technology is differentiated, but the presenter views this largely as a marketing angle. That being said, it does provide an effective mental sticking point with consumers. As PRPL maintains or even expands its share within a growing DTC category, he believes its top line and EBITDA should grow 20%+ and 25%+, respectively, for the foreseeable future. The presenter believes there is potential for share gains, seeing the space as crowded, declining interest from VC funds and the potential for Casper, another DTC competitor, to fail at some point. 

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Idea Discussion

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