Why Purple Innovation Shares Are Falling

Purple Innovation Inc PRPL is trading lower Tuesday after the company said it anticipates full-year 2021 net revenue and adjusted EBITDA at the low end of the prior guidance ranges.

During the company's most recent earnings report, Purple Innovation said it expected full-year net revenue to be in a range of $720 million to $740 million.

Purple Innovation also announced that Robert DeMartini has been appointed as acting CEO and a member of the board, effective immediately.

"Purple's strategic direction and multi-year growth prospects have the Company well positioned for 2022 and beyond.  The Board is confident this leadership transition will help sharpen our execution and advance the business toward the long-term financial targets we established earlier this year," said Paul Zepf, non-executive chairman of Purple Innovation's board.

Related Link: Purple Innovation CEO Resigns; Expects FY21 Sales At Low End Of Outlook

• Keybanc analyst Bradley Thomas maintained Purple Innovation with an Overweight rating and lowered the price target from $25 to $22.

Purple Innovation is a comfort innovation company. The company designs, manufactures and sells a range of comfort technology offerings, including mattresses, a pillow, cushions, sheets, bed platforms, and other products.

PRPL Price Action: Purple Innovation has traded as high as $41.08 over a 52-week period. It's making new 52-week lows Tuesday.

The stock was down 9.29% at $8.89 at time of publication.