NASDAQ$LOVE

The Lovesac Company · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a net sales increase of 15.5% and comparable sales growth of 8.9% driven by growth across showrooms and other channels, partially offset by a decline in the internet channel.

Lovesac reported a 15.5% increase in net sales and 8.9% comparable sales growth in Q3 2023. Growth was driven by showrooms and other channels, but partially offset by a decline in internet sales. The company is focused on managing expenses and prioritizing critical spending amid inflationary pressures.

  • Net sales increased by 15.5% due to growth in Showroom and 'Other' channels, offset by a decline in the Internet channel.
  • Showroom net sales increased by 19.0%, driven by a comparable showroom sales increase of 18.5% and the addition of new showrooms and kiosks.
  • Internet net sales decreased by 6.3% due to a shift back to in-person shopping.
  • Gross profit increased by 8.5% to $63.6 million, primarily due to the increase in net sales.

Headline financials

Total Revenue

$135M

Previous: $117M+15.5%
EPS (adj)

-$0.55

Previous: $0.17-423.5%
Omni-channel Comparable Net Sales Growth

8.9%

Previous: 47.1%-81.1%
Ending Showroom Count

189

Previous: 135+40.0%
Capital Expenditures

-$21.3M

Previous: -$11.4M-87.0%
Free Cash Flow

-$29.7M

Previous: -$8.63M-244.1%
Net Income

-$8.42M

Previous: $2.75M-405.9%
Operating Income

-$11.6M

Previous: $2.97M-490.3%
Gross Profit

$63.6M

Previous: $58.6M+8.5%
Cash & Equivalents

$3.83M

Previous: $47.9M-92.0%
Total Assets

$407M

Previous: $293M+39.1%
Stock-Based Comp

$732K

Previous: $1.11M-34.1%

Revenue & EPS history

Lovesac · Revenue · Quarterly

$135M

Q3 2023+15.5%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Lovesac · $138M total across 3 segments · Q1 2027

  • Showrooms
    $97.1M
  • Internet
    $35.7M
  • Other
    $5.46M

Forward guidance

The company anticipates continued inflationary pressure and is focused on tight expense management. Early signs point to strong cash flow generation for the fourth quarter holiday season.

Tailwinds

  • Well-executed and balanced omni-channel strategy
  • Innovative products
  • Continued momentum from inflecting brand awareness
  • Customer adoption bolstered by industry-leading in-stock position
  • Vast addressable market at $46.2 billion for couch + home audio categories

Headwinds

  • Challenging backdrop
  • Continued inflationary pressure on consumers
  • Tight expense management
  • Careful prioritization of critical spending
  • Operating loss of $11.6 million

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 Q3 2023

Historical avgQ3 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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