NASDAQ$LOVE

The Lovesac Company · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a strong second quarter with net sales growth of 45.0% and comparable sales growth of 31.1%.

The Lovesac Company reported strong Q2 fiscal 2023 financial results, with net sales growth of 45.0% and adjusted EBITDA of $14.1 million. The company's performance exceeded expectations despite industry challenges, driven by its Designed for Life platform, in-stock position, and brand awareness.

  • Net sales increased by 45.0%, driven by growth across all channels.
  • Showroom net sales increased by 47.7%, including kiosks and mobile concierges.
  • Internet net sales increased by 20.5% due to strong promotional campaigns.
  • Gross profit increased by $21.9 million, or 37.1%, to $80.9 million.

Headline financials

Total Revenue

$149M

Previous: $102M+45.0%
EPS (adj)

$0.45

Previous: $0.55-18.2%
Omni-channel Comparable Net Sales Growth

31.1%

Previous: 39.5%-21.3%
Ending Showroom Count

174

No prior period
Capital Expenditures

-$13.5M

Previous: -$7.14M-88.5%
Free Cash Flow

-$6.34M

Previous: $1.31M-585.4%
Net Income

$7.12M

Previous: $8.45M-15.7%
Operating Income

$9.9M

Previous: $9.01M+9.9%
Gross Profit

$80.9M

Previous: $59M+37.1%
Cash & Equivalents

$17.7M

Previous: $68.5M-74.2%
Total Assets

$374M

Previous: $281M+32.9%
Stock-Based Comp

$1.03M

Previous: $1.09M-4.7%

Revenue & EPS history

Lovesac · Revenue · Quarterly

$149M

Q2 2023+45%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Lovesac · $86.2M total across 3 segments · Q2 2023

  • Showrooms
    $48.7M
  • Internet
    $30.5M
  • Other
    $6.96M

Forward guidance

The company expects the dynamic operating environment to persist through the rest of the year, and their growth strategies are designed to fortify their position and build on their market share gains. They will focus on key product innovation, effective marketing and merchandising strategies, productivity expansion of touchpoints, and healthy digital channel growth.

Tailwinds

  • Key product innovation
  • Effective marketing and merchandising strategies
  • Productivity expansion of our touchpoints
  • Healthy digital channel growth
  • Disciplined execution

Headwinds

  • Dynamic operating environment
  • Changes in consumer spending and shopping preferences, and economic conditions
  • Disruption in our supply chain and dependence on foreign manufacturing and imports for our products
  • Reputational risk associated with increased use of social media
  • System interruption or failures in our technology infrastructure needed to service our customers, process transactions and fulfill orders

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.8%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+10.2%

Avg return

30 days after

50%

16 / 32 earnings

Positive

+72.0%

Q4 2020

Best reaction

-30.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-1.6%-13.7%
Q4 2026+1.2%-4.2%
Q3 2026-7.8%+0.1%+17.2%
Q2 2026-14.8%-13.5%-31.6%
Q1 2026+3.2%+6.6%+6.3%
Q4 2025+16.1%+22.3%+26.2%
Q3 2025-30.1%-29.2%-28.9%
Q2 2025+24.9%+26.8%+23.9%
Q1 2025-6.7%-10.4%+3.8%
Q4 2024-16.4%-17.1%+8.4%
Q3 2024+18.4%+20.8%+19.7%
Q2 2024-4.5%+1.7%+21.7%
Q1 2024-7.3%-8.4%+3.6%
Q4 2023+18.4%+20.4%+12.5%
Q3 2023-15.4%-11.9%+17.7%
Q2 2023-4.9%-12.6%-32.0%
Q1 2023-16.5%-22.5%-13.9%
Q4 2022+15.9%+9.1%-5.3%
Q3 2022+27.3%+17.1%-13.3%
Q2 2022+33.7%+29.2%+42.4%
Q1 2022+6.9%+6.5%-15.6%
Q4 2021-2.8%+1.3%+15.5%
Q3 2021+20.5%+9.1%+40.5%
Q2 2021-9.4%-11.5%+10.0%
Q1 2021+7.9%+4.8%+35.9%
Q4 2020+72.0%+87.1%+133.6%
Q3 2020-25.9%-13.5%-0.6%
Q2 2020+3.0%+11.0%-4.8%
Q1 2020-21.0%-20.7%-29.0%
Q4 2019+33.2%-6.8%+34.7%
Q3 2019+8.9%-1.3%+4.3%
Q2 2019-4.3%-4.9%+2.9%
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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