illumin Holdings Inc T.ILLM

Purple innovation

[Torontojay]

Purple Mattress is Acuityads largest customer and represents just about 10% of sales in 2020 or around $10 m. It is clear to me that Purple Mattress is likely one of the customers that scaled back on its advertising budget due to lack of inventory. As of Q3 2021, no one customer represented more than 6% of Acuityads sales compared to last year which was at 10%. If these customers from the corresponding periods are one in the same, then this would imply a reduction in advertising by about $1m from this 1 customer alone. 

 

"Our lack of inventory impacted sales through all of our channels which are deeply interconnected. Specifically, delays in planned wholesale expansion, slower re-acceleration of existing wholesale door productivity, and a more prolonged build-back from the effect of marketing spend reduction in response to inventory shortages which in turn also impacted our digital business."

https://stockhouse.com/news/press-releases/2021/11/09/purple-innovation-reports-third-quarter-2021-results

[snowpest]

Purple Mattress manufacture their products in the USA, unless they have problem sourcing raw material I don't see them having supply problems as much as companies with products manufactured elsewhere outside continental USA.

[kentucky77]

Good information TJ... Purple is a marquee marketing machine that needs to keep the DTC mix in their business... no doubt they will be leveraging AT illumin as they retrench.