The Lovesac Company Reports Fourth Quarter And Fiscal 2025 Financial Results
Fourth Quarter Net Sales of $241.5 million Fiscal Year Net Sales of $680.6 million
STAMFORD, Conn., April 10, 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 financial results for the fourth quarter and full year fiscal 2025, which ended February 2, 2025.
Note: Lovesac's prior year fourth quarter and fiscal 2024 results contain an additional, non-comparable week, or the "53rd week", when compared to the fourth quarter and full year results for the respective 52- and 13-week periods ended February 2, 2025 ("fiscal 2025"), and full year guidance for the 52-week fiscal year ending February 1, 2026 ("fiscal 2026"). Unless stated otherwise, financial metrics discussed in this release, such as net sales, operating income, net income and net income per share, are calculated in accordance with generally accepted accounting principles ("GAAP") and therefore include the 53rd week for the applicable prior year fiscal 2024 periods.
Shawn Nelson, Chief Executive Officer, stated, "Fiscal 2025 was a milestone year for Lovesac. We had our most prolific year ever for new product launches, having gained significant momentum in innovation and commercialization of Designed for Life (DFL) platform extensions, including an early launch of the Sactionals Reclining Seat. We codified our long-term strategy and value creation model, delivered at our first ever Investor Day, and unveiled the first of three completely new platforms we plan to launch over the next three years: the EverCouch(TM). We strengthened the foundations of our business having reinvented our supply chain and dramatically enhanced our CRM tools to deepen and broaden the moat around our unique omnichannel business model. We believe these strategic actions and developments position us well to profitably scale our brand and business for years to come."
Mr. Nelson continued, "After a slow start to the holiday selling season, strong execution by our teams dramatically improved conversion of customer quotes to sales throughout the remainder of the fourth quarter. This supported a mid-teens year-over-year increase in net income for the quarter and helped close out another year of market share gains for full year Fiscal 2025. While macro conditions were, and remain, frustratingly challenging, we are optimistic and enter Fiscal 2026 in a position of strength. We believe Lovesac's secular growth potential is massive. Our business model uniquely positions us to capitalize on macro upside whenever it does materialize, and without the need to over commit early during periods of uncertainty. Last, we have a healthy balance sheet and retain optionality for enhancing ROIC and/or accelerating profitable growth as opportunities arise."
Key Measures for the Fourth Quarter and Fiscal 2025 Ended February 2, 2025:(Dollars in millions, except per share amounts. Dollar and percentage changes may not recalculate due to rounding.)
Thirteen weeks endedFebruary 2, 2025
Fourteen weeks endedFebruary 4, 2024
% Inc (Dec)
Fifty-two weeks endedFebruary 2, 2025
Fifty-three weeks endedFebruary 4, 2024
% Inc (Dec)
Net sales
Showrooms
$154.5
$156.9
(1.6%)
$425.9
$437.4
(2.6%)
Internet
$70.5
$78.1
(9.7%)
$196.3
$199.8
(1.7%)
Other
$16.5
$15.5
6.7%
$58.5
$63.1
(7.4%)
Total net sales
$241.5
$250.5
(3.6%)
$680.6
$700.3
(2.8%)
Gross profit
$145.8
$149.6
(2.6%)
$397.8
$401.0
(0.8%)
Gross margin
60.4%
59.7%
70 bps
58.5%
57.3%
120 bps
Total operating expenses
$98.2
$109.3
(10.1%)
$384.2
$371.0
3.6%
SG&A
$67.6
$76.3
(11.4%)
$281.5
$264.3
6.5%
SG&A as a % of Net Sales
28.0%
30.5%
(250) bps
41.4%
37.7%
370 bps
Advertising and marketing
$26.8
$29.5
(9.2%)
$88.0
$94.1
(6.4%)
Advertising & marketing as a % of Net Sales
11.1%
11.8%
(70) bps
12.9%
13.4%
(50) bps
Net income
$35.3
$31.0
14.1%
$11.6
$23.9
(51.6%)
Basic net income per common share
$2.31
$1.99
16.1%
$0.75
$1.55
(51.6%)
Diluted net income per common share
$2.13
$1.87
13.9%
$0.69
$1.45
(52.4%)
Adjusted EBITDA1
$53.9
$48.4
11.4%
$47.8
$54.0
(11.5%)
Net cash provided by operating activities
$44.0
$56.3
(21.8%)
$39.0
$76.4
(49.0%)
1 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Information" and "Reconciliation of Non-GAAP Financial Measures" included in this press release.
Percent increase (decrease) except showroom count
Thirteen weeks endedFebruary 2, 2025
Fourteen weeks endedFebruary 4, 2024
Fifty-two weeks endedFebruary 2, 2025
Fifty-three weeks endedFebruary 4, 2024
Omni-channel Comparable Net Sales(1)
https://www.benzinga.com/pressreleases/25/04/g44730835/the-lovesac-company-reports-fourth-quarter-and-fiscal-2025-financial-results
