Dive Brief:
- Purple Innovation’s CFO Todd Vogensen is exiting the company Friday, according to a Tuesday press release. The executive is leaving Purple “to pursue a opportunity closer to home, where he will support transaction readiness at a private company,” CEO Rob DeMartini said in a statement.
- Bob Lucian, former CFO of La-Z-Boy, has replaced Vogensen effective this past Monday. Prior to La-Z-Boy, Lucian served as CFO of Coty's North America Professional Beauty division.
- Purple’s Q1 net revenue missed expectations, dropping 8.1% year over year to $95.7 million, mostly driven by declines in e-commerce and wholesale revenue that was partly offset by growth in showrooms.The mattress brand’s net loss worsened nearly 60%, ballooning to $30.5 million for the quarter.
Dive Insight:
Purple’s CFO transition is happening while the company battles declining sales and continues to evaluate strategic alternatives.
"We've recruited a highly accomplished CFO with direct experience in our market dynamics to lead the company's next chapter,” said Rob DeMartini, CEO of Purple Innovation. “Bob brings decades of financial and operational leadership across branded consumer businesses, including deep experience in retail and manufacturing, and a proven track record of driving operational discipline, strengthening financial performance and leading transformation. We are confident he will play a key role as we continue to execute our strategy and drive long-term value creation."
Purple lowered its full-year outlook on Tuesday, now expecting fiscal year 2026 revenue in a range from $465 million to $485 million compared to the prior estimated range of $500 million to $520 million. That’s due to an accounting adjustment the company made related to required net reporting of certain wholesale transactions, which also decreased the company’s reported revenues.
The brand’s Q1 operating expenses declined 6.3% to $52 million, and DeMartini sounded upbeat on improved operating efficiency.
"During the first quarter, we continued to build on the progress we made at the end of last year, with improving consistency across our business and solid performance in our showroom and wholesale channels," the CEO said in a statement. "While total sales were modestly down, e-commerce trends improved sequentially, and we are seeing early benefits from the more disciplined execution and the actions we've taken to strengthen the business."
