Purple Innovation: A Rising Digitally-Native Brand Unicorn Hiding In Plain Sight

About: Purple Innovation, Inc. (PRPL), Includes: SNBR, SNHFF, TPX
by: Drew Peng

Purple is well-positioned as one of the leading digitally-native brand disrupters in the $20b+ domestic mattress and bedding industry.

Purple has a proven resonance with consumers – revenue growth trajectory and online following show popularity of brand and leadership within rapidly emerging DTC mattress segment.

Purple has demonstrated multi-channel success with presence in both direct-to-consumer (DTC) and wholesale business.

Long runway for tremendous growth (Purple is a three year-old company expected to surpass $360m in annual sales in 2019).

Purple is the only N. American publicly-listed, digitally-native mattress player.

The following presentation attempts to outline both the opportunities and challenges faced by the Company and its new management team as it seeks to capture its fair share of the rapidly emerging, digitally-native mattress market. While Purple (NASDAQ:PRPL) faces challenges as it emerges from startup mode, the opportunities to grow into a profitable, truly differentiated player are massive and, importantly, not merely hypothetical or speculative. As a small-cap, public company with minuscule non-founder free float, Purple is not well covered by sellside analyst research. This presentation hopefully serves as a good overview of the Company, its competitive position, challenges, and future prospects based on readily-available public information.

Disclosure: I am/we are long PRPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.