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Oct 31, 2021
Lovesac Q3 2022 Earnings Report
Reported strong momentum across channels, driving net sales growth and improved net income.
Key Takeaways
Lovesac reported a strong third quarter with a 56.1% increase in net sales and an 11% improvement in net income. The company saw growth across all sales channels, including significant increases in showroom and internet sales. They also launched their new Stealthtech embedded surround sound system.
Net sales increased by 56.1% due to higher sales volume and lower promotional discounting.
Comparable sales increased 47.1% on top of 53.5% in the prior year period.
Net income improved 11% to $2.8 million.
Showroom sales increased by nearly 70%, and internet sales increased by nearly 40%.
Lovesac
Lovesac
Lovesac Revenue by Segment
Revenue by Segment
Showrooms Revenue
CapyFin.comInternet Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company is pleased with its strong start to the holiday season and is confident in its in-stock position to meet fourth quarter demand.
Positive Outlook
- Strong start to the all-important holiday season.
- Confident in in-stock position to meet fourth quarter demand.
- Looking forward to delivering an elevated customer experience across channels during the busiest time of year.
- Looking forward to closing out fiscal 2022.
- Unique business model with a concentrated sku count and redundant manufacturing spread across multiple geographies, delivering customers’ orders within days.
Challenges Ahead
- Macro supply chain disruption.
- Increase of approximately 748 basis points in total distribution and related tariff expenses.
- 953 basis point increase in inbound container freight costs.
- Increased tariffs related to higher product sourcing from China.
- Deleverage in employment costs and travel.
Revenue & Expenses
Visualization of income flow from segment revenue to net income