NASDAQ$LOVE

The Lovesac Company · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Lovesac's Q4 2020 results were announced, showing sales growth and adaptability during the COVID-19 pandemic.

Lovesac announced its Q4 and Fiscal Year 2020 financial results, with a focus on navigating the COVID-19 pandemic. The company reported strong sales growth and is prioritizing the health and safety of associates and customers. They are leveraging their DTC model and online advantages to capitalize on e-commerce demand while managing expenses and capital expenditures.

  • Q4 results were in line with January update.
  • Extended temporary showroom closures and implemented work from home policies due to COVID-19.
  • Experienced a surge in e-commerce demand by leveraging DTC competitive advantages.
  • Aggressively managing expenses, working capital, and capital expenditures to preserve financial health.

Headline financials

Total Revenue

$92.2M

Previous: $64.2M+43.6%
EPS (adj)

$0.37

Previous: $0.63-41.3%
Omni-channel Comparable Net Sales Growth

37.9%

No prior period
Ending Showroom Count

91

No prior period
Capital Expenditures

$3.44M

No prior period
Free Cash Flow

$21.8M

No prior period
Net Income

-$8.65M

No prior period
Operating Income

-$10.4M

No prior period
Gross Profit

$45.2M

No prior period
Cash & Equivalents

$25.4M

No prior period
Total Assets

$169M

No prior period
Stock-Based Comp

$1.22M

No prior period

Revenue & EPS history

Lovesac · Revenue · Quarterly

$92.2M

Q4 2020+43.6%vs Q4 2019
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Lovesac · $94.7M total across 3 segments · Q4 2020

  • Showrooms
    $54.7M
  • Internet
    $32M
  • Other
    $7.98M

Forward guidance

The company is not providing specific forward guidance due to the uncertainty surrounding the COVID-19 pandemic.

Tailwinds

  • Strong net cash balance.
  • Adapting marketing strategies to support e-commerce demand.
  • Focus on preserving financial health and flexibility.
  • Distinct DTC competitive advantages.
  • Online advantages that replicate Lovesac’s in-store experience.

Headwinds

  • Extended showroom closures.
  • Uncertainty related to the COVID-19 pandemic.
  • Potential disruptions to current plans and operations.
  • Slower than expected growth during the fourth quarter.
  • Risks related to tariffs.

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 Q4 2020

Historical avgQ4 2020

+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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