Lovesac Co SEC 10-Q Report

The Lovesac Company, a leading manufacturer and retailer of innovative furniture products, has released its Form 10-Q report for the first quarter of fiscal year 2025. The report highlights the company's financial performance and key business developments, reflecting its ongoing efforts to enhance customer experience and drive growth through its omni-channel platform.

Financial Highlights

• Net Sales: $138.4 million, increased by 4.3% compared to the prior year period driven by an increase of 2.8% in omni-channel comparable net sales and new showroom openings.
• Gross Profit: $74.4 million, representing 53.7% of net sales, decreased by 60 basis points primarily due to higher promotional discounting.
• Operating Loss: $(15.0) million, improved from $(17.9) million in the prior year period, reflecting a decrease in selling, general and administrative expenses.
• Net Loss: $(10.8) million, improved from $(13.0) million in the prior year period, primarily driven by a lower net loss before taxes.
• Basic Net Loss Per Share: $(0.73), improved from $(0.83) in the prior year period, reflecting the overall improvement in net loss.

Business Highlights

• Revenue Segments: The Lovesac Company reported that Sactionals represented 92.0% of net sales for the thirteen weeks ended May 4, 2025, while Sacs accounted for 6.8% and Other products made up 1.2%.
• Sales Channels: Showroom sales accounted for 69.7% of total net sales, internet sales contributed 24.1%, and other sales channels, including pop-up-shops and shop-in-shops, represented 6.2% for the thirteen weeks ended May 4, 2025.
• New Product Launches: The company launched the PillowSacTM Accent Chair Frame in May 2024, enhancing the style and comfort of the existing PillowSac.
• Showroom Expansion: The company opened 11 new showrooms and closed 1, resulting in a total of 267 showrooms as of May 4, 2025.
• Operational Strategy: The company is focusing on its omni-channel platform, which includes showrooms, ecommerce, and other touchpoints like pop-up-shops and shop-in-shops, to enhance customer experience and drive sales.
• Future Outlook: The company plans to continue investing in infrastructure to support growth, including research and development for existing and future products, and foundational technology investments.
• Strategic Initiatives: The company has discontinued its partnership with Best Buy and plans to wind down the Best Buy shop-in-shop locations by the third quarter of fiscal 2026, aligning with its strategic initiative to accelerate its physical and ecommerce presence.

SEC Filing: Lovesac Co [ LOVE ] - 10-Q - Jun. 12, 2025