Scoop: Purple's Change at the Helm!
- After serving as the CEO of DTC mattress brand Purple for some time, Joseph Megibow has decided to step down from his position and resign from the board, effective immediately. Stepping into his shoes as the acting CEO is Robert DeMartini, who commences his tenure right away.*
New Balance appoints ex-CEO from Purple as interim CEO
DeMartini brings a wealth of experience to the table, having previously served as CEO of USA Cycling. His career has also seen him hold high-profile roles at New Balance and P&G, as cited in a company press release.
- In addition to this leadership shakeup, Purple has revised its 2021 outlook. The company now expects net revenue and adjusted EBITDA to land on the lower end of the previously projected guidance of net revenue between $720 million and $740 million, and adjusted EBITDA between $15 million and $25 million.*
Bytes: A Closer Look!
Following a quarter that the former CEO described as "disappointing," Purple has brought in a seasoned pro to steer the ship.
"The Board is confident this leadership transition will help sharpen our execution and advance the business toward the long-term financial targets we set earlier this year," said Paul Zepf, Purple's non-executive chairman of the board, in a statement. "With his track record of leading New Balance's high-performance growth and its rise to a top global athletic brand, Rob is a great addition to the organization and the perfect person to lead Purple."
In its latest quarter, the direct-to-consumer (DTC) mattress brand reported a 8.7% year-over-year decrease in net revenue, largely due to production issues that hindered its ability to manufacture and deliver goods in the second and third quarters. Yet, compared to 2019, net revenue still saw a 45.5% increase.*
Purple, which initially gained traction during the pandemic with its popular mattress offerings, swung to an operating loss of $6.6 million from a profit of $24.3 million last year. However, the brand reported a net income of $2.1 million compared to a net loss of $87.2 million last year.*
This year, Purple has shuffled its C-suite, too. In June, Patrice Varni – boasting experience from Levi's, The Walt Disney Company, Tempur Sealy Brands, and Arhaus Furniture – stepped into the role of chief marketing and digital officer.
- The unexpected leadership change at DTC mattress brand Purple, sparked by Joseph Megibow's resignation, may signal a new era in the company's growth.
- Robert DeMartini, an AI-driven business strategist known for his numerous successes at USA Cycling, New Balance, and P&G, will step into the acting CEO role amidst this transition.
- As Purple navigates the continuing impact of the pandemic on personal-finance sectors, including the mattress industry, DeMartini's expertise might play a pivotal role in redefining the brand's financial war strategies.
- In the coming months, Purple's profitability will prove crucial, as the company aims to rebound with DeMartini's leadership and meet its long-term financial targets, set earlier this year.
