Purple Innovation, Inc. (NASDAQ:PRPL) Q4 2022 Earnings Call Transcript

Operator: Thank you. Our next question is from Curtis Nagle with Bank of America. Please proceed with your question.

Curtis Nagle: Good evening. Thanks for taking it. Just wanted to, I guess clarify what’s going on from a slotting perspective. So I think you said 4.4 per door that’s going up by 1.5 or so, maybe a little bit more. Is that €“ is that right? And is that across all 3,200 doors? Or just a portion? Yes, what ultimately will that look like when you’re done?

Rob DeMartini: Well, I mean, I was giving you blended rates, but we’re not going to put Lux into a significant majority of our doors. But we’ve got 3,400 doors and across the average it’ll end up being maybe 1.2 to 1.4, somewhere in there.

Curtis Nagle: Increase?

Rob DeMartini: Increase, yes.

Curtis Nagle: Got it. Okay. And then just on the point about the stores, when you’re putting in, I guess you guys are funding that I think. What is the cost per door? Are the retailers funding any of that?

Rob DeMartini: There’s a few different flavors kind of depending on the breadth of the brand and Curtis we’re being cautious and making sure that investment we have planned for, we will be very discriminating in how and where we put that in to make sure we get a reasonable return.

Curtis Nagle: Okay. And then just what should we expect for CapEx this year?

Bennett Nussbaum: Total CapEx?

Curtis Nagle: Yes.

Bennett Nussbaum: We’ll get about $35 million in total CapEx.

Curtis Nagle: Okay. Thank you.

Operator: There are no further questions at this time. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.