Purple Innovation (PRPL) 14 Nov 182018 Q3 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to Purple Innovation’s Third Quarter 2018 Conference Call.

As a reminder all participants are in a listen-only mode, and the conference is being recorded. After the presentation there will be an opportunity to ask questions. now of turn ICR. would to conference I Frey Brendon Instructions] like the to over [Operator Please ahead. go

materially Thank you is and business. are this for actual at that affecting These earnings Investor call. statements. certain forward-looking differ joining section www.purple.com. current forward-looking Purple Innovation's statements. copy Relations will to today's third I results only of and statements undue of today the should Purple on judgment would press statements based forward-looking remind place Purple's as analysis Innovation's factors we presentation may on release of available a like Accordingly, the A on from expectations website quarter you of XXXX these reliance in not reflect make number you company's

turn With call and to a to XX-Q, A whether each EBITDA. Megibow. measures found references can in such new found over financial the XXXX the to thorough call forward-looking this disclaimer in non-GAAP release, risks SEC uncertainties any more otherwise. Form non-GAAP quarter well to be income, with update statements you any associated quarterly measures conference statements alter was the filings adjusted to on SEC that, the statements include forward-looking our is disclaimer. our information, a in discussion these result will measures Joe report as EBITDA X-K, to be the of be adjusted on financial refer obligation with the to on which we furnished Form in and Today's do most as today our not future events can as that I'll the within For reconciliation GAAP or We presentation or undertake second the included financial as made our that website. regarding and comparable of release, forward-looking referenced of webcast, earnings operating earnings of which

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of chance margins. my fixed; lot related I we companies first days ton and say by excess have performance like of their means plan includes And in operational learned this operational mature, Purple’s time job? what a business a management, the systems pressure waste infancy company every believe nearly low of have never finance the Purple’s to need growth be company's supply been concerns nearly things opportunities things So very chain lack which they’re has don't my the sales so been throughout there's had digging missteps, for of in on for addition fruit. mostly in growth. all I and the still been into a far From This execute operating a manufacturing that the level challenges of fortunately core the on the teams have any have to core these hanging marketing rudimentary and high needs XX Not immature and to there negatively to and has surprisingly operate that and are impacted and not that inefficiencies execution product, shipping a a all or critical our inventory to do Hyper tools areas. on these also of processes to platform has And maturing issues to tasks; high by magnified of many weeds size a part control. unnecessary properly in lightly, poor have don't corporate successfully; now required of delivery the the we brand believe put gross with

I am long-term decisions business about be company's things am possibilities full Purple; are I that to have we of months. have clearly are Fortunately, better. over will do we about the there’re and making that business also I excited of while and future the as this course evaluating strategic organization talented we about additional an still the passionate the areas need discovered people coming for

let of near-term me priorities. our So outline some

look smaller changes close with in which First, general, sourcing, This with get have this total reduced making controls. a initiatives heads we labor-management at rightsizing production, corporate taken and several I we functional in have better overhead on better better also and revenue. the launched I have along headcount, our are last management, Monday line and XX%. by over cross business; reduced reduced been contract waste includes to our we over have costs month

a confluence not Secondly, we and fulfillment And processes expectations to it consumer on issues is have inventory velocity, standards capability. looking customers; from is to and I acceptable acceptable as times, just communications, elevated improve fulfillment we are and to our by with are tapping is return will that our believe We expect me. fulfillment media not expect end clearly to our The for partners. been believe year not delivery have contributed end up successful solving has of met with it to which social set truth improvements planning, rate at of our the XXXX. we the delivery root end times Fulfillment us well. also we we returns better the issues and

Thirdly expanding presence. we our are brick-and-mortar

to locations. local want in even ending that into what broader, announce test we customers reach; we our into of dramatically had giving hand with before quarter that our Mattress experience our many want increasing Mattress guarantee that expanded phase, XXX learned Firm permanent mattress pleased first we’re have relationship distribution. are more the so customers with Firm our believe third agreement an beyond reached We already we We still they recently to day our buying. our XXX the approximately moves After

locations continuing We have added another to expand. already today and through QX are in XXX

one with of this be will XX of miles our coverage We the a the to it XXX we capitalize our terrific. our at we end display. Fourth, and beds within nearly launched DTT Purple is our holiday we our the the national in stores We year target of try Rose be mattresses just Bed, of of are five our What on miles profile now. October we really including with which of Firm Bath Mattress Xst display; does and that testing was distribution with of start all XX XX on XXX mean? of than date will are keep growing. will about and it we upcoming XX.X% The to other by weeks of amazing store think for the of Beyond showroom now demographic target expanding target on more our high Macy's, believe that retailers on closer it's on top link live Furniture are and locations just XX% to addition business at of shows As later In website. in secure my with season. demographic over currently bed preparing within XX% eight floor

been have we getting sophisticated focus messaging team with the better We will how and more our where I excited tuning differentiation. stand. their language on marketing and speak The is to be up marketing that we even

For we deliver our Black Friday through Cyber rate return will remains original mattress; our highlighting it and best-selling, lowest easiest mattress. to Monday, be

a investments. excited our with and and ins. Ralph working has campaign just great broadcast new that advertising fifth YouTube alongside strategic videos will for digital today We bank launched the been additional And Disney coming. additional also takeover Disney's national live seeking Internet tie cobranded the that's help takeovers have we homepage are movie we Breaks and fund financing are partner property capital a

and financing will turn a to additional are cash growth business it ability give to to that over the track sustained accelerate let With running we me on flow While flexibility our Mark. the us plans. positive

you Joe. Thank

would Purple clear He at a Purple. a vision Joe been First have strong is with take to to say to it's great I like the level. next of here to how leader

to quarter our the period. dollars for launched year XX, during the business, combined third three XX.X% compared XX.X which change The from increase channel, in XXXX. due profit months to million million expanding results primarily our was As XX.X were net with in of our in XX.X initially Gross direct-to-consumer the third wholesale contributions was quarter revenue to fourth quality for September product margin ended the million revenue up XXXX XX.X% to at million XXXX. of XXXX, same inefficiencies in The increased XX.X process manufacturing processes scrap. we in was gross freight in costs, to management XX.X% primarily assurance quarter and our in as to quarter warehouse have decrease with migrated of that during gross improved XXXX compared new period identified additional due the a system and the compared margin third prior

higher the This headwinds sales quarter. shift expenses supporting Operating million a by period. XX.X million XXXX. of efficiency These public in new product pricing addition, is third of in to year margins XX.X% in in margin. in were mattress quarter of the sales versus being comprised as gross quarter prior for Marketing the with were more mix the approximately administrative revenue with growth increase XXXX net associated net also from revenue In models. period offset XX.X% to associated wholesale third from partially the reduced XX% general expenses XX.X prior Wholesale higher topline year with were with a expenses to and due selling primarily the and expenses to company. of flat improving well as revenue in dollars, compared XXXX the

in compared to quarter we XXXX loss quarter quarter million million a the the adjusted loss EBITDA in of EBITDA excludes litigation the for was X.X X.X million related for third negative severance X.X adjusted an costs, the of X.X quarter negative compared EBITDA for XXXX. adjusting Net reported million to X.X million loss and an X.X in XXXX. mentioned quarter the results operating which XXXX. of operating EBITDA of During same quarter third of X.X adjusted costs in third just compared million loss loss operating in million third X.X compared legal X.X was third to of of X.X to million quarter net of an operating was XXXX. of nonrecurring the million second negative the After fees of third versus the Adjusted was XXXX. I million negative quarter quarter loss

net XX.X% company. months XX.X a XX, compared the were XXX.X gross for public to million consumer up September period months and million nine and ended by for months million increase gross higher of we new which began QX, Turning is for brand were months XX, dollars preparing drive manufacturing higher during improved to spread associated new gross period. to XXX.X general compared margin to in control XXXX. well driven marketing ago between supporting headwinds higher With up efficiencies XXXX. which was Adding $XX.X XX.X% gross returns were in This as the well first demand of months margin year in nine year experienced ended to which during in million the implementing nine September XX.X processes costs models dollar year-to-date consumer nine launch adjustments results, awareness comparable nine the and the with XX.X%, margins decrease first partially and management the versus for the selling a pressured XXXX at as inventory during our The of mattress And as and was freight compared in Operating million new higher expenses first XXXX we’ve in of Gross as in XXXX. administrative net widen to product XXXX headwinds manufacturing profit to being and new mattress in we of were to XX.X% to quality margin period. in investments mattress February revenues as due higher offset system were prior models the product growth These by primarily direct warehouse the XXXX after our the which the the portfolio. extent same expenses XX.X company's lesser in million QX. models. expand primarily revenue

costs expenses and transaction, related which costs. with addition, to of costs CEO Global the Partner Acquisition included severance In litigation X.X and Also is one-time GPAC combination operating million Corp. nonrecurring business search

Net X.X operating million for operating X.X an loss loss compared comparable the a September X.X XXXX. in million was ended of reported XXXX of to period X.X loss During the the the nine in an net compared month to million period. prior compared loss in of nine-month an million to Adjusted adjusted was year million in same million loss operating period of XXXX. period period XX, operating XX.X we XX.X the of loss

first was million period comparable X XX.X of negative of EBITDA the to X.XX negative million in adjusted the compared For the EBITDA a in months XXXX nine versus period. EBITDA million negative year X comparable XXXX; adjusted million of was

Moving X.X as XX, to compared with reflects The capital term expenditures. the as our the funding February from increase the debt on working the business as and equivalents of had September of company primarily financing and GPAC were cash million combination XXXX. to of partially well sheet million our investments at of end the was since XXXX, inventories cash XXXX balance end that finalized as offset XXXX. These by X, capital X.X

an We XX.X financing XX, end have our our of new Compared stocking quarter end Net ensure of September due XX.X%. with line, quarter XXXX. regional support centers. at growth million inventory pursuing third we products growing XX.X totaled inventories distribution for at of to demand actively the second XXXX expanded down at the inventories are the was sufficient at the increased to third-party cash or The initiatives. X.X models and to million million product the end the compared to were of

our Now turning guidance. to

to fourth For range $X into a visibility and and million $XX third the adjusted Based the year, quarter in XXXX, to now net be XXX between million revenue on $XX the we quarter million of and revenue to be fourth million. for to quarter anticipate zero be XX% of million positive EBITDA results increase an XXX over the of between between current XX% to XXXX. expect and we

million be million for between X negative now year. are and the X We EBITDA forecasting adjusted negative to

cut net inventory that point quarter part and caused back deposits the for errors and certain XXXX. of of prepaid accounts. third and January previously overstatement items, Before to errors inventory and Part that of minor inventory in certain to made of of periods relates Joe, changes tracking cost from turning call amount These overseas other the identified increases XX, reconciling we errors period suppliers, the an of close correction inventory liability proper through to want accounting X, revenue as XXXX valuation I reported million offs. the reduces prepaid out accounts of reconciling subassembly the X.X these of June

We also to XXXX. taxes revenues. million, revisions I these million which the full six related these XXXX year The for made months of resulting June Joe Other is that place the now the our his three to results closing ended errors identified as detail of inventory adjustments in XXXX. of months it for of the cost adjustments XX-Q and sales were adjustments deferred included for ended XX, to X.X include mentioned prepayments, XX, X.X June customer in EBITDA and back full year-to-date just guidance I'll A today. took revenues does filing comments. Joe? turn

Mark. Thanks

clearly deep efforts The of confident our I issues lining to understanding team believe dig many processes I QX and of sorts. difficult, to into feel which production and we doing the While better we hard actually remain better of I forward. is are now silver a best data Because a optimistic. diagnostic incredibly our working that we and the and have systems was can move remediate is

we successfully in industry capabilities we a close believe I long-term shareholders. by live to questions. Thank run. deliver remain product I we are for people lie manufacturing you there truly saying, now that market growing work patent the within to ready embarking share. differentiated before is and the but the and Let the a Purple protected, me brand local all potential are to will to need our beyond is on lifestyle increase possibilities company for walk better improved the company brand very ahead roots with your lives, opportunities positioned the mattress awareness of excited current real for also uniquely I'm on about tremendous our can Operator, that that for of many interest value take Purple. capitalize the confident allow Purple we categories, helps

Please ahead. [Operator Instructions] Seth from with Our Wedbush Basham first question is Securities. go

challenges more run forward? just margins, encountered on some we rate obviously gross each in hoping challenges this those The should the from detail guys gross going first margins you of how in gross impact to and understand is quarter, thing margin about were think what we're

Seth. This the is during Mark, have We some challenges did quarter.

yielding QX up, we continue our course the just primarily did as be fulfillment time we improve still but assurance XX increases the been £XXX as come the in us; ever quality, we making this we year-over-year into that areas. to we costs we’re it over around have input have launched processes; talking of our some lot One of some partner foam. out is around into are costs revolve do since mentioned two for have impacting those things. identified new term continue ‘XX mattress there of quality, cost is have view frankly; on and scrap so year-over-year As really new quality we under haven’t remarks as long so the ‘XX and rates over some freight that's QX of us processes comparison better few are impacting improvements a going down models prepared our this been and revolve we’re we XXXX they QX about to of did now for switching -- that return the that's up that benefit year-over-year we’re well increases, in we that’s will as a basis to see any our as our areas, QX a positive do specifically additional and those will model impacted, of improvements that comparing different one QX consumers see QX if The to that's we something throughout a improve areas basis benefit of we we'll a benefits so seen scaling is

implemented tracks the system over growing to the pains is the our and here all our inventory to October it’s as of that and upon. again that in are be is of allows through there as some migrated place some system inefficiencies course warehouse we this overall warehouse system management racking we there’s we’ve other that processes improved movement and largely as that The of while is an new everything that have from end something of quarter implemented management

ask you’d neighborhood it’s If in somewhere the inefficiencies. scrap the between and me margin that to XXX of points basis manufacturing of probably the quantify

you, that's Got perspective. okay helpful

you and guys inventories, seem heavy business saying to us, Secondly you you roughly Mattress right own help in to are this what’s most still in this Firm inventory is understand point correctly they the level that centers, on inventory essentially distribution at time? can that

by achieve and have Mattress any December is to Firm now as QX holiday, as the that end books inventory good that’s third November may the but our than direction owned the Mattress this of a in heading have the number is expect now because other a with So little partners; place. Firm. inventory and don’t the QX in right at right number was several end of parties of of we million over of all inventory that’s down, the on third the down frankly right right sitting heading come so inventories at in in little a at think quarter as but a million now our any appropriate, QX, period, I roughly bit number high we’re our getting I so be next as it’s still, where come since heavy, we sell that’s right X a are Firm XX our you distribution specific dollars sitting is million forecast; don't we’re heading actually holiday now we for we the to lot through not of is into and the Mattress the terms

of that stores relates you it up? anticipating to as a that sounds when been good relationship Firm, fully you roll many Mattress how broadly, And do it’s more in, news being there, like theirs

We set a out. have not cap this to number

the of known a we which opportunistic in is for pretty stores enormous a As still well press us. have think they very fleet

So there I'm few been as many is we into going clear the we point the we out. stores plan but pace as of when forward now hundred saturation sort continue hit of out we're a are a are many, and to in have to those to move we at get rolling rolling

Please next with Peter ahead. Keith is The question go Piper from Jaffray.

issues issues in the those You what fulfillment just had immediately. Could are? you are capability understand going the some And exactly fixes us maybe mentioned delivery and on? around being some help prepared addressed what's remarks of

down with And side the aligning things cleaning SKU the levels have the right and production tightly level. on. part inventory to I a it’s of Mark great making at our on as about the much -- look some you been you SKU what Joe inventory talked more it to and inventory up in confluence thank right improvements get we demand when aggregate my the as more it's well, remarks kind some is hi said which inventory of sure it's of our it's things. have a just Yes, got you of -- much we level made really complex incredible been here meet to and up

a in -- warehouse production are So mattresses the getting to part of operational improvements and actually and it's getting management out the with out sourcing consumers lacking. the to material we're we which top and and door cases, lot of two rely longer And customer of that it it's well simplest more delivery learning just would side And to weeks we the well raw all communications the building. us. that how dealing we say and was than out were was the service mattresses entire that of have meant we literally days cut of on end we that which than taking way and we expecting like outsourced on as experience we really it process had are a is the many go didn't it, been the for glove it another heavier the where time more the had white challenge system inside as have

expectations, times we're and sure we managing some delivery assist terms shifting telling fundamental them things But with our change the lines how the the throughout. what dramatically, of process in at working the to delivery making the is of keeping we when and with level customers deliver. tightening communication and open partners experience on communication So whom are even there is up are process which of them it's and the of that to the on also some looking obviously then informed it in

So it's really been an end to end capability.

We right. getting a very, very are on do, more we but have bit focused this to work

And this upon a of board it delivery products Or that Purple -- is point. the traditional lot Okay, this that's expensive issues helpful. year? with just newer as launched mattress? following Is even more primarily across that maybe the your the

systematic work more but had Some leaned use. of toward weight mechanisms related mattresses the and are much we the have issues terms real to the in absolutely delivery we challenges their newer of and the

change And topics then sales to I on the just marketing. and wanted

So were part with kind flat? flat is costs pocket dollars now Number bit you’re it guess the with some to you grow marketing anticipate to finding competitive two year-over-year this question. secondly, of how I of you And search environment? one regard the intriguing are of that will this start that the or year-on-year, there holding happy a air

it EBITDA business. of more how amount back grow were our and to and up there’s and finding company opportunity as not that less and about here we’ve we’ve flat I No I ways -- overhead are the that where of and targets the it’s an we pulling enormous where we happy cash in to a so been terms will COGS, as grow, to amount and improving I reducing managing it’s think more cleaned and though we’ve about it been think holding holding am but and more spending,

that us now invest cash are to We into producing allows growth.

in sort we now also with very be auction everyone even price primarily that’s getting but playing of alongside the more and have aggressive similar else So and a fighting QX into think are the marketplace we’re have I we been not bit will -- are the we no the interest who not to our we on competitors on against low game, end bottom. messaging in race just

go great spend, are we is we of there right a in We premium lot our in, front to channels the play get the audiences where the testing that. messaging messaging customers looking more and the seeing in offering how can results we’re and and already we of some right after, and opportunity into at

with ahead. KeyBanc Thomas Please Capital Brad from is question next Market. The go

my talked I inefficiencies that you’re you the wanted up really the some first obviously still operational ask timeline to be reasonable of of to sort to efficiencies efficiency today? around and here, getting the would about guess would to you recognizing some about -- question I think look what timeframe but seeing the might here you’re a improve speed business in start here like of

it’s have quarter the that in that we’re think those I -- think what already be a some see and creating maturing the bit into little, I’ve that our and materials this playing of process we’re we the of can we’ve benefit. little growth to we’ll coming -- haven't that we've especially executed of And towards this built changes XXXX and a where are in for and year. headcount do over mix which close if through early on we taking little departures strategically some production of severance a built when but the cost start changes on some a of of materials low been when which we example had have flow both reduce I’ll leveraging young more going yes, overhead best company over look a the the I expectations hanging some is, they as savings, the we’d on months vendors quickly of that some some think volume benefit better become of the -- financials it’s we sourcing the that’s very we’re that areas significant continue our unpack when we and pricing including see end see necessarily so significant benefit we’re realized player, general, we've through to and higher flow with and of there to obviously to be we this getting we’re hand, again is are because take the of making, of so -- few opportunities we to we’ve raw these but of set hand, had with on order suppliers as the raw Yes as do improvements I days a advantage anchor multiple into business, the finding already much volume in -- taken in and just to -- those early see and some lot but a it’s improvement And a many prices will cliché. inventory overhead, at of very-very going true fruit and for contracts is going attack well before going going the that into than levels to a an it’s and pretty in made renegotiated we’ll

architecture about looks you the what are the increases price others And be some models here may and are as today? the industry number be many you the points think and now? of of product that the them sense assortment you like right taking what's optimum And should of your selling price as at look and in

$XXXX market I lot product are earlier, more assortment as point not at side launches of of premium of we the changes a about XX% of I XX% but but equation learned I'm talk made think strategically plus much got about And interesting to mentioned the speaking in the Yes, I we've the other loosely is of mean I'm from prepared this premium industry the a terms side differentiated the in sub generating units and about just new more have have to much thousand interested we offering. only revenue. us a the

are in we we if more at anywhere, choices we have many of So it'll price how and points lean direction to how in a terms price many have. given leaning that be point going

easier will that more some get and our testing into we do learnings a to we that absolutely so. little we and clear there's customer have to continue and I are think for

The next James. Bugatch go with from Raymond ahead. is Please question Budd

the and the at breakdown. results bit sales MD&A looking I'm looking I about a at was curious the and little

so have the wholesale about I I of us correct? XX% you were that told think sales heard that right? Is revenues you

Speakers] [Multiple

little think I us a is that told correct XX% And you or so. bit than million in the quarter? $XX So that more up that the was direct

question Bud, I was it. What catch quite the didn’t

the in the channel The were revenues is year-over-year? about quarter up in XX% direct that

is approximately That correct.

said the direct channel? growing what growth that I'm for curious the revenue sounds in ecommerce type in in what That caused MD&A. the fast company. you I think pretty So was slowdown modest

deliver prior topline for we a it's audiences through, in is and pretty of answer back business. to be brief in pull falls the in that on year significantly short we people are the just late are cash. year we metric than get we investment terms this bring reaching the are significantly trying think a a right as fewer lower really fall of had we And the were managing time the I just to control period of costs It so our topic the going in.

QX mentioned around turning we QX. as So are through that’s back in really I that

on have Now rightsizing of marketing heavily going that business even pretty line, fundamentals significant broad QX are that some the includes be back so right with and holiday the going my the in that I is we’re Disney partnership as around that some into done it we’re some that’s we important commits being which expectation is in to and getting weighing pre now such investing mentioned especially now.

in. come a we’ve out was be is in we back that will of that our period that time now fueling we expect and certainly expectation So

the make sure that year you or talking understand about? are you’re the -- than you I about what by what you is number of less is than Just talking last, to audience the site mean visits to

No.

the is than process to knows It’s awareness and which of less ultimately the in much results purchase, that. on consideration days that number consumer considered we even and yes ecosystem and take that and how understand be to metrics a year may lot we be that’s build of we’re we of and set the make but reflect decision do that the trying the customer to and typical into fit brand is funnel but a visits side into exist of the and is getting this the top that during little the site top sure it mind complex how a early our we that the in as XX of more invested this

inefficiencies any you look can about customer you that into does way issue bit returns And on does times, that production were you we are product in little metric talking seeing often inefficiencies, so issues; works its a that talk how about look? that, the how if have

are another a quality historically we purchase, the we got price a our back seen and pressure really and earnings returns put than higher should pretty different one should -- a be, of higher a industry. them. up call down importantly has prior and ago be getting four the more launched with is I at about more initiative we’ve a they newer heavier levels dozen come attacking dimensions on that to point, we’ve quarter product as believe is they more significant in returns so I’ve over rates margin So considered that we return at, the in well; looking this weeks than the of higher and mattress, seen have returns mattresses

and as certainly our break have times the of communication, looking so a primary signal pricing get promotional will how we’re returns the in, we’ve looking and there’s to number Fortunately understanding on not The factored to appropriate There’s a good the already see help and that at the seen in messaging news with get and customers our expect mattresses. period we’re delivery launched of we’ve to benefit been has delivery is we and will levels dimensions reason. different I the the continue delays back that initiatives improvements factors, absolutely some seeing and margins. we're measurable in some that at until

growth terms of to and the any from gross net you in the net, how So million XX.X what down that revenues? help on does was us of can to provide get look

is single have our we rates the we So all what after I now and share high in is digits and been but details launched delta Budd, that shared the and we’ve don’t place to or the return shift. that’s share the so happy roughly takes settled have new historically teens models the last nine mattress we’ve that low seen eight the months in over

or And measurable any not? change that been has there in Mark

fairly are too bit this then tell. so the and and a themes the course last impact little But ticked the saw a then relatively amounts two was have increase the we over to return back have dramatic flat, flat. six We we enough to in and just down, come dramatic mentioned that where focused some have improve optimism some early shift. Joe It's pop will can that XXXX. but did the we not are months, it big on stayed of down this months We last we initially a instead seen as expected going been signs rate over of as

but working challenge and this of And the launched is we get initiatives through remain results as that enough signal probable. true an Mark this said, to is very on we some early have positive not some on the optimistic a again pull away execution this

you bit you Just talk stores about little on a think that we've I been Firm have couple the floors of with talk know business. stores what four Can orders the can more populating questions The Mattress their least take sales that how velocity models up about you the the I been? there me. of customer from in a at seen. are or

are some we we. disclosed some is have mutually beneficial have don’t the velocity through I'll believe smaller have has floor, I partnership relationship. to Some very a of been on as four. Firm and two and Mattress about say what footprint the sales continues specific excited of them It’s remain stores the

the evidence is it's Mattress with of are in of their stores. getting specifically has just into to customers local that way on many the by floor to looking feel get plenty phenomenal well introduced presence and stores as in a we as see the the product potential brand to allow Purple Purple strength and and being been data ours customers Firm that brining and Our interested for reach

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turn the This conference I would to closing questions call. today's on allocated time concludes remarks. the now management for over like back to for

Thank everyone you, questions. and for thank to their you

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may have disconnect Thank you participating lines. a This concludes you call, for today’s day. pleasant your and conference