Shares of mattress retailer Purple Innovation Inc. PRPL, slid 7.5% premarket Tuesday, after the company lowered and withdrew certain financial guidance, after experiencing problems getting machinery back online after an accident and safety upgrades. The company said it now expects second-quarter revenue to range from $175 million to $185 million, below the FactSet consensus of $205 million. Purple is fully withdrawing adjusted EBITDA guidance offered on May 17. The company is expecting “significantly reduced production levels” for about 10 weeks that will cause shipment backlogs affecting second and third-quarter revenue. It expects to have production fully back up by mid-July. The company is also pulling its full-year guidance as it conducts a review of the production issues, but expects to be able to offer revised guidance when it reports second-quarter earnings. The company is hosting an investor day Tuesday at which it will share its 3-to-5 year growth plan. Shares have fallen 15% in the year to date, while the S&P 500 SPX, +0.23% has gained 14%.
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