Proven Technology Leader to Enhance the Company’s Digital Strategies to Support Growth ObjectivesSTAMFORD, Conn., Oct. 21, 2025 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq: LOVE) (“Lovesac” or the “Company”), the Designed for Life home and technology brand best known for its Sactionals, The World's Most Adaptable Couch, today announced the appointment of Jacob Pat as Chief Technology and Digital Transformation Officer effective immediately. Mr. Pat will spearhead Lovesac’s enterprise technology and digi ...

Core Insights - The Lovesac Company is scheduled to participate in the 2025 Global Consumer & Retail Conference on October 8, 2025, at 3:30 p.m. Eastern Time [1] - The event will be webcast live and accessible on the Company's Investor Relations website, with an online archive available post-event [2] Company Overview - The Lovesac Company, based in Stamford, Connecticut, is a technology-driven furniture brand known for its unique, high-quality products designed to last a lifetime and evolve with customers' lives [3] - The product lineup includes modular couches called Sactionals, Sactionals Reclining seats, premium foam beanbag chairs (Sacs), PillowSac™ Chairs, an immersive surround sound system (StealthTech), and an innovative sofa solution (Snugg™) [3] - The brand emphasizes responsible production and innovation, having received Repreve's 7th Annual Champions of Sustainability Award, and holds a robust portfolio of utility patents [3] - Products are primarily marketed and sold online through the official website, complemented by physical retail presence in branded showrooms and partnerships with third-party retailers [3]

Core Insights - The Lovesac Company reported a 2.5% increase in net sales for Q2 FY26, reaching $160.5 million compared to $156.6 million in Q2 FY25, driven by a 0.9% rise in omni-channel comparable net sales and the addition of 16 new showrooms [1][9] - The company is transitioning from a product-focused entity to a brand-centric organization, refining its strategic roadmap to support growth as a multi-faceted home brand [2][9] - Despite facing category headwinds, the company maintains confidence in delivering long-term value and aims to become the most loved home brand in America [2] Financial Performance - Net sales for the thirteen weeks ended August 3, 2025, were $160.5 million, a 2.5% increase from $156.6 million in the prior year [3][9] - Gross profit decreased by $1.8 million, or 1.9%, with a gross margin of 56.4%, down from 59.0% in the prior year, primarily due to increased transportation costs and higher promotional discounting [3][9] - Operating loss for the quarter was $8.8 million, compared to a loss of $8.4 million in the prior year, resulting in an operating margin of (5.5)% [3][9] Operating Expenses - Total operating expenses decreased by 1.3% to $99.4 million, with SG&A expenses down 2.1% to $72.1 million [3][9] - Advertising and marketing expenses increased slightly by 0.7% to $23.5 million, driven by a new product marketing campaign [3][9] - The company recorded a net loss of $6.7 million for the quarter, or $(0.45) per share, compared to a net loss of $5.9 million, or $(0.38) per share, in the prior year [3][9] Year-to-Date Performance - For the year-to-date period ended August 3, 2025, net sales increased by 3.3% to $298.9 million, with a 1.4% rise in omni-channel comparable net sales [3][9] - Gross profit for the year-to-date period increased by $0.6 million, or 0.3%, but gross margin decreased to 55.2% from 56.8% due to higher promotional discounting [3][9] - The year-to-date net loss was $17.5 million, or $(1.19) per diluted share, an improvement from a loss of $18.8 million, or $(1.21) per diluted share, in the prior year [3][9] Cash Flow and Inventory - Cash and cash equivalents as of August 3, 2025, were $34.2 million, down from $72.1 million as of August 4, 2024 [16] - Total merchandise inventory increased to $124.0 million, up from $88.3 million, primarily due to a planned stock inventory increase [16]

Core Insights - The Lovesac Company has appointed Alan Boehme to its Board of Directors, effective August 27, 2025, enhancing its leadership with expertise in digital transformation and technology-enabled growth [1][2]. Company Overview - The Lovesac Company, based in Stamford, Connecticut, is known for its innovative furniture products, particularly the Sactionals, which are marketed as "The World's Most Adaptable Couch" [1][4]. - The company focuses on a "Designed for Life" approach, creating high-quality, modular furniture that is built to last and evolve with customer needs [4]. - Lovesac's product range includes Sactionals, Sactionals Reclining seats, premium foam beanbag chairs (Sacs), the PillowSac™ Chair, StealthTech home theater systems, and EverCouch™ [4]. Leadership and Expertise - Alan Boehme brings over 30 years of experience in consumer goods, retail, and manufacturing, having held significant roles such as CIO and CTO at major brands like H&M Group, Procter & Gamble, and The Coca-Cola Company [2][3]. - His current role as Founder & President of Technology Transformation Group Inc. involves advising companies on technology strategy and operational efficiency, further enhancing his value to Lovesac [3]. - Boehme's expertise includes AI, cybersecurity, and retail technology, aligning with Lovesac's innovative model and long-term growth objectives [2][3]. Awards and Recognition - Lovesac has received accolades such as Repreve's 8th Annual Champions of Sustainability Award and Edison Awards' 38th Annual Best New Product Awards for Sustainable Consumer Products, highlighting its commitment to responsible production and innovation [4]. Sales and Marketing Strategy - The company primarily markets and sells its products online through its website, supported by physical retail locations including branded showrooms and partnerships with third-party retailers [4].

Core Insights - The Lovesac Company reported a 4.3% increase in total net sales for the first quarter of fiscal 2026, reaching $138.4 million compared to $132.6 million in the prior year [3][8] - The company experienced growth in showroom sales by 18.2%, while internet sales declined by 8.9% [3][4] - The launch of the EverCouch platform is expected to double the company's total addressable market, enhancing long-term growth potential [2][8] Financial Performance - Net loss for the first quarter was $10.8 million, an improvement from a net loss of $13.0 million in the same period last year, resulting in a basic net loss per share of $(0.73) compared to $(0.83) [3][21] - Gross profit increased by 3.2% to $74.4 million, with a gross margin of 53.7%, down from 54.3% due to higher promotional discounting [3][8] - Total operating expenses decreased slightly by 0.6% to $89.3 million, with selling, general and administrative expenses (SG&A) down by 1.9% [3][8] Operational Highlights - The company opened 11 new showrooms and closed 1, bringing the total showroom count to 267 [4][8] - Adjusted EBITDA loss improved to $(8.4) million from $(10.3) million year-over-year [3][8] - Cash and cash equivalents decreased significantly to $26.9 million from $72.4 million a year earlier, indicating a cash flow challenge [8][22] Market Position and Strategy - The company gained market share despite category headwinds, attributed to its Designed for Life product platforms and efficient customer acquisition strategies [2][8] - The introduction of the EverCouch platform is part of a strategic roadmap aimed at unlocking significant growth potential [2][8] - The company remains cautious about the dynamic macroeconomic environment but expresses confidence in its long-term growth trajectory [2][8]