Q1 2025 Lovesac Co Earnings Call Transcript
Key Points
- The Lovesac Co (LOVE) delivered net sales, adjusted EBITDA, net loss, and EPS at or slightly favorable to the high end of their guidance ranges.
- The company saw a significant improvement in sales trends in March and April compared to February, indicating a positive response to their promotional adjustments.
- The launch of the PillowSac Accent Chair has been well-received, generating buzz and positive customer feedback.
- The company has a strong balance sheet with $72.4 million in cash and cash equivalents and no borrowings on their revolving line of credit.
- The Lovesac Co (LOVE) continues to innovate with a healthy product pipeline, including new launches planned for fiscal '26 and beyond.
- Total net sales for the first quarter declined by 6% year-over-year, reflecting a challenging market environment.
- Omnichannel comparable net sales declined 14.8% for the quarter, primarily due to a difficult start in the first months.
- The company experienced a significant increase in SG&A expenses as a percentage of net sales, driven by investments in payroll, professional fees, and infrastructure.
- Advertising and marketing expenses increased by 6.4% compared to the prior year period, impacting overall profitability.
- Net loss for the quarter was $13 million, a substantial increase from the $4.1 million net loss in the prior year period.
Greetings and welcome to the Lovesac first quarter fiscal 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Caitlin Churchill with ICR. Please go ahead.
Thank you. Good morning, everyone. With me on the call is Shawn Nelson, Chief Executive Officer; Mary Fox, President and Chief Operating Officer; and Keith Siegner, Chief Financial Officer.
Before we get started, I would like to remind you that some of the information discussed will include forward-looking statements regarding future events and our future financial performance. These include statements about our future expectations, financial projections, and our plans and prospects.
Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the company's filings with the SEC, which includes today's press release.
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