Financial Data and Key Metrics Changes - Total sales increased by $11.8 million or 9.1% to $141.2 million in Q1 2024 compared to the prior year, driven by growth across all channels [101] - Adjusted EBITDA was a loss of $2.4 million for the quarter, reflecting ongoing investments in the business [76] - Gross margin decreased by 100 basis points to 50.1% of net sales, primarily due to higher promotional discounting [105] - Net loss for the quarter was $4.2 million or $0.28 per diluted share, compared to net income of $1.9 million or $0.12 per diluted share in the prior year [140] Business Line Data and Key Metrics Changes - Sactionals net sales increased by 11.2%, while Sacs net sales decreased by 10% [136] - Internet net sales increased by $8.9 million or 28.7% to $40.2 million, significantly outperforming the category [102] - Showroom net sales increased by $2.3 million or 2.9% to $83.6 million, driven by higher point-of-sale transactions [133] Market Data and Key Metrics Changes - The overall home category was reported to be down 20% in Q1, contrasting with the company's sales growth [75] - The company continues to capture market share in a fragmented upholstery category, with only low single-digit penetration despite significant growth [57] Company Strategy and Development Direction - The company aims to innovate continuously, with the recent launch of the Angled Side expected to drive significant upside among new and existing customers [77][125] - The focus remains on building a brand that resonates with consumers, leveraging a unique product platform that combines home and technology [58][118] - Investments in technology and research and development are prioritized to fuel growth and enhance customer experience [130] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the future, despite a challenging macro environment impacting consumer spending [80][124] - The company expects to continue outperforming the category, with a strong focus on growth and ROI-driven investment discipline [112] - The competitive landscape is highly promotional, but the company has maintained promotional intensity below pre-pandemic levels, indicating strong demand for its products [82] Other Important Information - The company celebrated its 25th anniversary with a significant media campaign, generating over 3 billion impressions [34][97] - The company has a strong balance sheet with $45.1 million in cash and cash equivalents, positioning it well for future growth [141] Q&A Session Summary Question: Insights on consumer trends and discretionary spending - Management noted no significant trade-down trends, with a flat or slightly elevated mix of premium upgrades in purchases [24][25] Question: Update on tech and R&D investments - Investments in technology include optimizing inventory levels and enhancing customer service through AI platforms [27][29] Question: Brand awareness and social media engagement - Unaided brand awareness remains low, indicating a significant opportunity for growth, while aided awareness has increased substantially [16] Question: Gross margin and freight costs - Management expects a 200 basis points increase in gross margin due to lower freight costs, with benefits expected to fully materialize in Q4 [39][40] Question: Sales pull forward from Q2 to Q1 - A shift in demand was noted, with strong performance in Q1 leading to a pull forward of some projected demand from Q2 [45][46]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 29, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38555 THE LOVESAC COMPANY (Exact Name of Registrant as Specified in Its Charter) | Delaware | 32-05149 ...

The Lovesac Company (NASDAQ:LOVE) Q4 2023 Earnings Conference Call March 28, 2023 8:30 AM ET Company Participants Rachel Schacter - Investor Relations, ICR Shawn Nelson - Chief Executive Officer Mary Fox - President and Chief Operating Officer Donna Dellomo - Executive Vice President and Chief Financial Officer, Treasurer and Secretary Conference Call Participants Brian Nagel - Oppenheimer & Co. Thomas Forte - D.A. Davidson Maria Ripps - Canaccord Genuity Matt Koranda - ROTH MKM Alex Fuhrman - Craig-Hallum ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38555 THE LOVESAC COMPANY (Exact name of registrant as specified in its charter) | Delaware | 32-0514958 | | --- | --- ...

Financial Data and Key Metrics Changes - Total net sales for Q3 2023 were $134.8 million, an increase of 15.5% compared to the prior year period [16][59] - Adjusted EBITDA loss was $8.4 million, which was better than expectations, driven by better-than-planned gross margin declines [16][75] - Net loss for the quarter was $8.4 million or $0.55 per diluted share, compared to net income of $2.8 million or $0.17 per diluted share in the prior year period [73] Business Line Data and Key Metrics Changes - Showroom net sales increased by $13.3 million or 19% to $83 million, driven by higher point of sales transactions and the addition of new showrooms [60] - Other net sales, including pop-up shops and shop-in-shop transactions, increased by $7.1 million or 61.8% to $18.5 million [61] - Internet net sales decreased by $2.2 million or 6.3% to $33.3 million, reflecting a shift back to in-person shopping [63] Market Data and Key Metrics Changes - The overall furniture category is down in the mid-teens percentage-wise compared to last year, highlighting the company's outperformance [9][17] - The company reported a 38% of recent customers did not cross-shop with competitors, indicating strong brand loyalty [18] Company Strategy and Development Direction - The company aims to capitalize on a $46.2 billion total addressable market for couches and home audio, with a focus on innovation and sustainability [15][32] - The company is investing in technology and supply chain improvements to support long-term growth [20][56] - The company plans to continue expanding its showroom presence and enhancing its omnichannel experience [45][47] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging, but they expect to outperform the category and generate growth at a more modest rate compared to the previous year [26][27] - The company anticipates benefits from lower inbound freight costs flowing through to the P&L, with the greatest impact expected in fiscal 2024 [83][84] - Management expressed confidence in their positioning for the holiday season and the overall outlook for the fourth quarter [86] Other Important Information - The company is committed to sustainability, having repurposed over 159 million plastic bottles into their products and aiming for zero waste and zero emissions by 2040 [31][32] - The company has a strong debt-free balance sheet and expects to end the fiscal year with over $75 million in total liquidity [11][80] Q&A Session Summary Question: Consumer sentiment and impact of higher interest rates - Management noted that while the category is down, they continue to outperform and see a strong pipeline for the holiday season, with affluent core consumers [88][90] Question: Promotional efforts relative to competitors - Management indicated that their promotions are less deep than competitors due to strong brand strength, and they are confident in their marketing investments [96][97] Question: Role of China in supply chain - Management highlighted efforts to diversify supply chains, reducing reliance on China from nearly 100% to below 30%, and focusing on sustainable manufacturing closer to consumers [104][106] Question: Planned use of higher gross profits - Management plans to use some gross margin expansion to mitigate higher outbound freight costs while also investing back into the business [110][112]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to Commission File Number: 001-38555 THE LOVESAC COMPANY (Exact name of registrant as specified in its charter) | Delaware | 32-0514958 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | Two Landmark Square, Suite 300 | | | Stamford, Connecticut | 06901 | | (Address of principal executive offices) | (Zip Code) | Washington, D.C. 2054 ...

Financial Data and Key Metrics Changes - Total sales increased to $148.5 million, up 45% year-over-year, with comparable sales growth of 31% driven by both new and existing customers [11][57] - Adjusted EBITDA grew to $14.1 million from $12.4 million in the prior-year period, despite supply chain-driven gross margin pressure [12][75] - Net income was $7.1 million or $0.45 per diluted share, compared to $8.4 million or $0.52 per diluted share in the prior-year period [73] Business Line Data and Key Metrics Changes - Sactional net sales increased by 53.1%, while other category net sales, including decorative pillows and blankets, increased by 35.6% [63] - Internet net sales rose by $6.1 million or 20.5% to $35.5 million, driven by strong promotional campaigns [59] - Showroom net sales increased by $29.8 million or 47.7%, with a comparable sales increase of 36.8% [57] Market Data and Key Metrics Changes - The home category is experiencing a year-on-year decline in double digits, while Lovesac is gaining market share in a fragmented $46.2 billion market [13][20] - The company has achieved 17 consecutive quarters of over 25% growth, representing a CAGR of 45.4% over the past four years [31] Company Strategy and Development Direction - The company focuses on sustainability and a "Designed for Life" business model, which emphasizes long-term product and service relationships with customers [90][28] - Investments in high ROI marketing and advertising are key contributors to brand awareness and sales success [12][53] - The company plans to open more than 25 showrooms and continue infrastructure investments to support multi-year growth opportunities [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue gaining market share despite a challenging macro environment [25][87] - The company anticipates a moderation in sales growth rates in Q3 due to increased throughput and accelerated inventory transactions [82][100] - Management highlighted the importance of disciplined execution and infrastructure investments to support future growth [52][85] Other Important Information - The gross margin rate decreased by 310 basis points year-over-year, primarily due to increased freight costs, but was partially offset by improved product margins [65][66] - The company ended the quarter with $17.7 million in cash and cash equivalents and $36 million available on a revolving line of credit [78] Q&A Session Summary Question: What does "Designed for Life" mean at Lovesac and why is it a competitive differentiator? - "Designed for Life" is the company's design strategy focused on developing long-term products and services, which sets it apart from competitors that produce temporary products [90] Question: How much revenue could be generated from StealthTech at maturity and how does its gross margin compare against Sactionals? - The company expects to generate hundreds of millions in sales from StealthTech in the coming years, viewing it as a significant product line [92] Question: Can you provide more color on the softness at the low end of the business? - Management noted that initial concerns about softness were alleviated as the quarter progressed, with strong performance during promotional periods [96][98] Question: Is the Q3 guidance consistent with current trends? - Management indicated that Q3 performance is on track with guidance, with a strong outlook based on current sales trends [100] Question: What are the costs and timeframe for the new distribution center? - The new distribution center is expected to enhance inventory handling and customer service, with significant investments being made this year to support future growth [104][107]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q | Delaware | 32-0514958 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | Two Landmark Square, Suite 300 | | | Stamford, Connecticut | 06901 | | (Address of principal executive offices) | (Zip Code) | Registrant's telephone number, including area code: (888) 636-1223 Not applicable ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d ...

The Lovesac Company (NASDAQ:LOVE) Q1 2023 Earnings Conference Call June 8, 2022 8:30 AM ET Company Participants Rachel Schacter - ICR, IR Shawn Nelson - CEO Mary Fox - President and COO Donna Dellomo - CFO Jack Krause - Chief Strategy Officer Conference Call Participants Thomas Forte - D.A. Davidson Maria Ripps - Canaccord Brian Nagel - Oppenheimer Camilo Lyon - BTIG Matt Koranda - ROTH Capital Alex Fuhrman - Craig-Hallum Capital Group Operator Greetings. Welcome to Lovesac First Quarter Fiscal 2023 Earning ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 30, 2022 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38555 THE LOVESAC COMPANY (Exact Name of Registrant as Specified in Its Charter) | Title of each class ...