Oct 29, 2023

Lovesac Q3 2024 Earnings Report

Reported strong financial results with net sales growth and improved net loss.

Key Takeaways

Lovesac Company reported a 14.3% increase in net sales for the third quarter of fiscal 2024, driven by growth in Showroom and Internet channels. The company's net loss improved by 68.2%.

Net sales increased by 14.3% primarily driven by growth within Showroom and Internet channels.

Gross profit increased by $23.5 million, or 36.3%, to $88.4 million.

Net loss improved to $2.3 million, or $(0.15) net loss per diluted share.

The company opened 10 additional showrooms and closed 1 showroom and 2 kiosks during the quarter.

Total Revenue
$154M
Previous year: $135M
+14.3%
EPS
-$0.15
Previous year: -$0.55
-72.7%
Omni-Channel Sales Growth
2%
Previous year: 8.9%
-77.5%
Ending Showroom Count
230
Previous year: 189
+21.7%
Gross Profit
$88.4M
Previous year: $63.6M
+39.1%
Cash and Equivalents
$37.7M
Previous year: $3.83M
+884.8%
Free Cash Flow
-$6.25M
Previous year: -$13.6M
-54.1%
Total Assets
$436M
Previous year: $407M
+7.1%

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 $720.0 million. Adjusted EBITDA4 in the range of $54.0 million to $62.0 million. Net income in the range of $22.0 million to $26.0 million. Diluted income per common share in the range of $1.35 to $1.60 on approximately 16.5 million estimated diluted weighted average shares outstanding. Fiscal 2024 will contain an additional “53rd week” in the fourth quarter versus 52 weeks in fiscal 2023. The Company currently expects the following for the fourth quarter of fiscal 2024: Net sales in the range of $260.0 million to $270.0 million. Adjusted EBITDA4 in the range of $48.0 million to $56.0 million. Net income in the range of $29.0 million to $33.0 million. Diluted income per common share in the range of $1.77 to $2.02 on approximately 16.6 million estimated diluted weighted average shares outstanding.