Jul 30, 2023

Lovesac Q2 2024 Earnings Report

Reported a net sales increase of 4.0% and omni-channel comparable sales growth of 7.2%.

Key Takeaways

The Lovesac Company announced its financial results for the second quarter of fiscal year 2024, which ended July 30, 2023. The company reported a 4% increase in net sales compared to the same period last year, with growth driven by Showroom and Internet channels. However, the company experienced a net loss of $0.6 million, a decrease compared to the net income of $5.8 million in the second quarter of fiscal 2023.

Net sales increased by 4.0% primarily driven by growth within Showroom and Internet channels.

Gross profit increased by 16.8% to $92.4 million, with gross margin increasing by 650 basis points to 59.8%.

Operating loss was $1.0 million compared to an operating income of $8.1 million in the prior year.

Net loss was $0.6 million, or $(0.04) net loss per diluted share, compared to a net income of $5.8 million, or $0.37 net income per diluted share, in the prior year.

Total Revenue
$155M
Previous year: $149M
+4.0%
EPS
-$0.04
Previous year: $0.45
-108.9%
Omni-Channel Sales Growth
7.2%
Previous year: 31.1%
-76.8%
Ending Showroom Count
223
Previous year: 174
+28.2%
Gross Profit
$92.4M
Previous year: $80.9M
+14.2%
Cash and Equivalents
$54.7M
Previous year: $17.7M
+210.0%
Free Cash Flow
$12.9M
Previous year: -$45M
-128.6%
Total Assets
$434M
Previous year: $369M
+17.5%

Lovesac

Lovesac

Forward Guidance

The Company expects the following for the full year of fiscal 2024: Net sales in the range of $710.0 million to $730.0 million. Adjusted EBITDA in the range of $51.0 million to $63.0 million. Net income in the range of $20.0 million to $29.0 million. Diluted income per common share in the range of $1.21 to $1.75 on approximately 16.5 million estimated diluted weighted average shares outstanding.