Bedding and comfort retailer Purple (NASDAQ:PRPL) will be reporting earnings tomorrow afternoon. Here’s what you need to know.

Purple met analysts’ revenue expectations last quarter, reporting revenues of $129 million, down 11.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

Is Purple a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Purple’s revenue to decline 12.9% year on year to $104.5 million, a reversal from the 12.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Purple has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Purple’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Leggett & Platt’s revenues decreased 6.8% year on year, meeting analysts’ expectations, and Mohawk Industries reported a revenue decline of 5.7%, falling short of estimates by 0.9%. Leggett & Platt traded up 32% following the results while Mohawk Industries was down 1.9%.

Read our full analysis of Leggett & Platt’s results here and Mohawk Industries’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 8.8% on average over the last month. Purple’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $1.85 (compared to the current share price of $0.67).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.