NASDAQ$LOVE

The Lovesac Company · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong financial results with net sales growth and improved net loss.

Lovesac Company reported a 14.3% increase in net sales for the third quarter of fiscal 2024, driven by growth in Showroom and Internet channels. The company's net loss improved by 68.2%.

  • Net sales increased by 14.3% primarily driven by growth within Showroom and Internet channels.
  • Gross profit increased by $23.5 million, or 36.3%, to $88.4 million.
  • Net loss improved to $2.3 million, or $(0.15) net loss per diluted share.
  • The company opened 10 additional showrooms and closed 1 showroom and 2 kiosks during the quarter.

Headline financials

Total Revenue

$154M

Previous: $135M+14.3%
EPS (adj)

-$0.15

Previous: -$0.55+72.7%
Omni-channel Comparable Net Sales Growth

2.0%

Previous: 8.9%-77.5%
Ending Showroom Count

230

Previous: 189+21.7%
Capital Expenditures

-$21.9M

Previous: -$21.3M-3.1%
Free Cash Flow

-$24.3M

Previous: -$29.7M+18.2%
Net Income

-$2.34M

Previous: -$8.42M+72.2%
Operating Income

-$3.61M

Previous: -$11.6M+68.9%
Gross Profit

$88.4M

Previous: $63.6M+39.1%
Cash & Equivalents

$37.7M

Previous: $3.83M+884.8%
Total Assets

$436M

Previous: $407M+7.1%
Stock-Based Comp

$1.09M

Previous: $732K+48.9%

Revenue & EPS history

Lovesac · Revenue · Quarterly

$154M

Q3 2024+14.3%vs Q3 2023
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 expects the following for the full year of fiscal 2024: Net sales in the range of $710.0 million to $720.0 million. Adjusted EBITDA4 in the range of $54.0 million to $62.0 million. Net income in the range of $22.0 million to $26.0 million. Diluted income per common share in the range of $1.35 to $1.60 on approximately 16.5 million estimated diluted weighted average shares outstanding. Fiscal 2024 will contain an additional “53rd week” in the fourth quarter versus 52 weeks in fiscal 2023. The Company currently expects the following for the fourth quarter of fiscal 2024: Net sales in the range of $260.0 million to $270.0 million. Adjusted EBITDA4 in the range of $48.0 million to $56.0 million. Net income in the range of $29.0 million to $33.0 million. Diluted income per common share in the range of $1.77 to $2.02 on approximately 16.6 million estimated diluted weighted average shares outstanding.

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 2024

Historical avgQ3 2024

+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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