Benzinga | Dec 14, 2021 05:28AM EST

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

Purple Innovation Inc (NASDAQ:PRPL) has appointed Robert T. DeMartini as Acting Chief Executive Officer and a member of the Board of Directors, effective immediately.

* DeMartini succeeds Joseph B. Megibow, who is stepping down as CEO and a member of the Board to pursue other interests.

* DeMartini has worked at Procter & Gamble Co (NYSE:PG) for 20 years. He most recently served as President and CEO of USA Cycling.

* Outlook: Purple Innovation anticipates FY21 net revenue and Adjusted EBITDA at the low end of the prior guidance (sales: $720 million - $740 million, Adjusted EBITDA: $15 million - $25 million) issued November 9, 2021.

* Analyst Rating: Keybanc analyst Bradley Thomas lowered the price target to $22 from $25 while maintaining an Overweight rating on the shares.

* Price Action: PRPL shares closed lower by 2.10% at $9.80 on Monday.