NASDAQ$LOVE

The Lovesac Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Lovesac reported record fourth quarter and fiscal year 2023 financial results, marked by net sales growth and increased adjusted EBITDA.

Lovesac Company reported a 21.7% increase in net sales for the fourth quarter, driven by growth across all sales channels. Net income was $27.6 million, and adjusted EBITDA increased by 51.0% to $48.3 million. The company is focused on growth initiatives and profitable growth for fiscal year 2024.

  • Net sales increased by 21.7% in Q4 2023, driven by growth across all sales channels.
  • Comparable sales grew by 16.2% in Q4 2023.
  • Net income was $27.6 million in Q4 2023, compared to $32.6 million in the same quarter last year.
  • Adjusted EBITDA increased by 51.0% to $48.3 million in Q4 2023.

Headline financials

Total Revenue

$239M

Previous: $196M+21.7%
EPS (adj)

$1.74

Previous: $2.03-14.3%
Omni-channel Comparable Net Sales Growth

16.2%

Previous: 50.0%-67.6%
Ending Showroom Count

195

Previous: 146+33.6%
Capital Expenditures

$3.95M

Previous: $4.5M-12.2%
Free Cash Flow

$39.8M

Previous: $44.7M-10.9%
Net Income

$27.6M

Previous: $32.6M-15.4%
Operating Income

$38.1M

Previous: $24.2M+57.4%
Gross Profit

$135M

Previous: $110M+23.3%
Cash & Equivalents

$43.5M

Previous: $92.4M-52.9%
Total Assets

$409M

Previous: $372M+10.0%
Stock-Based Comp

$7.52M

Previous: $3.01M+150.0%

Revenue & EPS history

Lovesac · Revenue · Quarterly

$239M

Q4 2023+21.7%vs Q4 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 expects net sales between $700 million and $740 million, adjusted EBITDA between $55.0 million and $66.0 million, net income between $30.0 million and $36.0 million for fiscal year 2024.

Tailwinds

  • Net sales in the range of $700 million to $740 million.
  • Adjusted EBITDA in the range of $55.0 million to $66.0 million.
  • Net income in the range of $30.0 million to $36.0 million.
  • Diluted income per common share in the range of $1.83 to $2.24.
  • Fiscal 2024 will contain an additional “53rd week” in the fourth quarter versus 52 weeks in fiscal 2023.

Headwinds

  • Net sales in the range of $133 million to $136 million for Q1 2024.
  • Adjusted EBITDA loss in the range of $4.0 million to $5.0 million for Q1 2024.
  • Net loss in the range of $5.0 million to $6.0 million for Q1 2024.
  • Diluted loss per common share in the range of $0.36 to $0.37 for Q1 2024.
  • Projections are as of this date and the Company assumes no obligation to update or supplement this information.

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 2023

Historical avgQ4 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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