Lovesac Q1 2025 Earnings Report
Key Takeaways
Lovesac Company announced its financial results for the first quarter of fiscal 2025, with net sales of $132.6 million. The company's performance was inline with expectations, driven by its omni-channel infinity flywheel and advantaged supply chain. The company is expanding its product offering with the launch of the PillowSac Accent Chair.
Net sales decreased by 6.1% to $132.6 million compared to the prior year period, driven by a 14.8% decrease in omni-channel comparable net sales, partially offset by the addition of 35 new showrooms.
Gross profit increased by 2.1% to $72.0 million, with gross margin increasing by 430 basis points to 54.3% of net sales.
Operating loss was $17.9 million, compared to $5.7 million in the prior year period.
Net loss was $13.0 million, or $(0.83) net loss per common share, compared to $4.1 million, or $(0.27) net loss per common share in the prior year period.
Lovesac
Lovesac
Lovesac Revenue by Segment
Forward Guidance
The Company expects net sales in the range of $700 million to $770 million, Adjusted EBITDA in the range of $46 million to $60 million, and net income in the range of $18 million to $27 million for the full year of fiscal 2025. For the second quarter of fiscal 2025, the Company expects net sales in the range of $152 million to $160 million, Adjusted EBITDA loss in the range of $2 million to $5 million, and net loss in the range of $6 million to $8 million.
Positive Outlook
- Net sales in the range of $700 million to $770 million for fiscal year 2025.
- Adjusted EBITDA in the range of $46 million to $60 million for fiscal year 2025.
- Net income in the range of $18 million to $27 million for fiscal year 2025.
- Net sales in the range of $152 million to $160 million for the second quarter of fiscal 2025.
- Basic loss per common share in the range of $0.37 to $0.53 for the second quarter of fiscal 2025.
Challenges Ahead
- Adjusted EBITDA loss in the range of $2 million to $5 million for the second quarter of fiscal 2025.
- Net loss in the range of $6 million to $8 million for the second quarter of fiscal 2025.
- Net sales decreased by 6.1% in the first quarter of fiscal 2025.
- Omni-channel comparable net sales decreased by 14.8% in the first quarter of fiscal 2025.
- Operating loss was $17.9 million in the first quarter of fiscal 2025, compared to $5.7 million in the prior year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income