The Lovesac Company (LOVE) 13 Jun 242025 Q1 Earnings call transcript

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. everyone. morning, Good the Mary on Keith Shawn Chief Nelson, Chief With President call and Officer; Fox, Officer. and Chief Executive Financial me is Operating Siegner, Officer;

that would Before started, regarding future future will like some our statements of and performance. to include we forward-looking the I remind financial get events discussed information you

These include prospects. expectations, forth results differ may future such Actual those in and set projections statements financial about statements. materially our and our from plans

review these For filings and risks the a should includes release. company's the you press of which SEC discussion with uncertainties, today's

rely update predictions of based as not we except applicable by them, on forward-looking should make on future that to beliefs and today. You as our required and forward-looking as statements are assumptions law. of we statements on undertake call this obligation events. All no

Our our results. A substitute has non-GAAP will These not measures measures measures, been should and to our financial GAAP comparable EBITDA information supplemental press or considered provided for to the in include in as non-GAAP such financial release. measure financial including GAAP and adjusted non-GAAP in reconciliation from addition of EBITDA. be most directly a as discussion today financial isolation

to the Nelson, to call the Executive Officer Chief of like over I'd Lovesac Now turn Company. Shawn

thoughts outlook Siegner, we CFO, in and everyone, on our Thank progress by President I'll passing sharing start quarter key outlook. you are update our call initiatives joining reviewing will first our the you, our Then review detail. financial who the our Fox, highlights on Caitlin. COO, Keith making before for and about more growth will to morning, results you and and our performance discussion Good Mary thank us today. from our

our highlights the to fiscal quarter. of Turning first

end were first that April, Well, that we net delivered pleased conference digital favorable our confident refinements we're forward. or and earnings we the we worked. loss we month and EPS why of net call difficult made guidance our at adjustments agency approach And our sales, ranges. and in During better generate the going first adjusted the quarter results with our promotions slightly high new of a discussed EBITDA, in to we to

will first as sales decline net a this comparable last Specifically was a for to Total anniversaried total contend described were omnichannel strong of XX.X% a X% all made year of the I adjustments quarter, challenging $XXX.X net category year-over-year difficult we quarter. outline and we reflecting a nearly Keith quarter the first month as earlier. Though, million, for continue declined the before sales with backdrop. result the later,

adjusted nonrecurring. below which some market gains opening meaningfully decline year full First being results new saw recent increases was net and sales fell Despite driving represented the quarter EBITDA loss quarter versus in and trends, of XX deleverage that in category exacerbated The sales we investments our fees and down from in marketing, double future points quarter they share prior first was a initiatives, digits. while of still professional touch the the also in quarter. another

net sales for the even we'd year. Additionally, growth back at be in anniversary to last XXth range newly our issued second our the fiscal of campaign guidance midpoint quarter, against

omnichannel focus omnichannel life business the we any philosophy everything our to unique for with other, our customer, Infinity we our design down long-term do. on and unlike reason on several products outperformance As the calls, for flywheel advantaged boils last outlined have our our model consistent an permeates the

to or as in retailer. sustain actually platform our platforms Innovation like company high or we are company is commitment a say, as compatibility merchant-led always sustain. a to that We to tenability with reverse but reinforcing DNA opposed in our product product can a mind, sustainability

that stack all into segue designed built Tax and That's last world's on innovation. the frame. product are Pillow our the room, share years casual to to evolve. perfect the and The role even the many more. Welcome now of in was it founded platforms lounge, latest XX Lovesac does Accent their Sac does the and Our ago the most playroom, our of have comfortable that bedroom in the family namesake, firmly home. spaces product seat. established Sacs

the in to be the to elevate Accent continue and figuratively. We Pillasac established. the of leading frame done we subcategory that we've the is the introduction literally with brand What chair

enjoy nomophomalstaces. accent is Pillasac an stylish cloud-like and chair to inviting in the eye-catching Combined, sophisticated way comfort

are covers to new architectural who living ultimate fact, this turned own We've style, appreciation to life different our generating we response On finding existing customers innovation believes statement digest rooms next. and both their pipeline accent ways express the very approach sometimes In remains ask what's us into tremendous and our fit to from all customers for leading front, piece. occasions. It's healthy. seen for buzz, numerous that purchasing personal design product

side have this of platform are extensions. on smaller a launches We that more few the fiscal coming year

fiscal a early that open we benefit the in customers of core a 'XX will of have those, platform believe launch ours. Following for aperture larger and potential we AOV

plenty to details. the including for but entirely wait have works categories, more more we that, Following new in you'll have

deepen also for support Lovesac brand. services operations their love the support circular that foundations laying our and to the value are for customers for proposition We commitment to the

by first, details, timeless reiterated we I'll are remainder the up but today. you and so Mary year, tuned. our on trade-in resale our more and uniquely which durable outlook for close touching of stay products for the will give

macro are make discussed a planning we We're numbers. to on prudently. our As not counting we before, balance

categories. we're down want for time. primed growth line business, in be to fact, and another uniquely and to tools new just reinforcing occurs more. our with we're of foundations position building a lift in We're through In certainly, year. We're our profitability. existing other expanding near is for I will waiting adding strength. touch real powerful basing our as our it We're built But over-participate innovating to is a a expanding we We're category, full accessibility category, support CRM any not boat. and our one whenever a the new tech massive, category opportunity compared expanding to year in digital top in are off brand, the to clear, unlike This outlook scalability. We're tide products rebound last idly profitable physical still down We're accessibility points. and year ensure in that XX% the and

will to the strategic Before their versus want to yet I call more another With team turn over hand in detail. the strong that, thank Mary, it for Mary cover over delivering amazing progress priorities to to I the outperformance and in Lovesac our industry. I role

and morning, Sean, you, good everyone. Thank

reflects for we for March trends discussed, April inflection tough which quarter overdelivered and As in into our as a an to we dramatic put sales Shawn net is to anomaly. context to February what believe and quarter's compared start as the guidance X, helps

we strategic outperformed the and in and supply and is in market Infinity category, and an our EBITDA underpinned X-year period, a the on flat as adjusted with health Importantly, business and growing our expect resulting start economics performance chain. We're the and unique second our We've we opportunity the that also point our strong that advantaged category, we XXX best-in-class is pleased focus significant. quarter, Brand and touch now addressable customer addressable disciplined sales platform same quarter a has level to a by to built a basis model initiatives product-centric and from were plans XXX% initiatives. up further for from our investments flywheel. I'll basis, X, unlike total go-forward market. our expand points. In time pre-pandemic key increased category omnichannel our of highlights our capabilities in growth on of that anyone our the margin our provide each compared else strategic benefit of

Firstly, of this the of happy innovation. a were Pillosac We launch the Chair. year, to Action product first great number innovations

so stack. the many You now with have pillow options

Peapod, bed lounge and or frame stylist it lay create it seat. can a you in place the guest a new flat for accent can You in share a

accent just machine-washable XXX hardware are integrate in functionality, selecting asset changeable owners with elegant to addition options. experience strap share sophisticated your Existing be. for In them to new frame while from discovering their Blondo can can whole allowing way, added Pillasac customers how customize new you a and seamlessly can finishes covers, the stack over

and quarter. AngleSite, gain we Angle editors, of York. editor share, already we in with were has star driving As upcoming which it side. look AngleSite a a in largest the also with interior been the Sactionals mix professionals the celebrate design #X innovation, the Sactional to partnership within and value great We month than an initial digest comforts. cloud-like everything of XX and representing in and higher last more last hoped style to our highlight to New leveraged continues with is perfect average bridge sharing we Costco, launched size us. choice. summer creators our for attendance order launched architectural without strong be it business content response in continues we recently Notably, launched Over for, we to event The forward

closer having who aperture with We us share to sharing select customers in expect compete even you fiscal track to gains. size satisfaction material Additionally, our in category the report where more our innovation open to of launch. with that accelerate our we comfort couch significantly enable the than details AngleSide and launch 'XX for customers. We're we standard look market on higher to early an forward

digital our as omnichannel platform. and through experience, physical our omnichannel is position of true strengthen our combination we points a to continue retailer Second our and a touch

Best help our conversion customer X, partnership update During relationships. friction Mihup, an is greater XX enhanced product X further conversion that experience, this customers opened experience. these Phase quarter account an us are we X Buy long-term the In new reduces with will My deliver launched Hub additional provide points plan increasing with and significant personalized capability the and a designed for opportunity to launching customers and to including expanded that with quote the customer enhanced has omnichannel and customer a a we This customer launches seamless of creating our online, the quarter, accounts and engage the recommendations, more. Everything and led us an in year, in build satisfaction. increase experiences And shop-in-shops. to post-purchase journey, we touch within

satisfaction result customer technology quarter to omnichannel chain recorded increased improved supply a especially scores. These experience, our X, experience experience. customer our fulfillment the and and our and scores digital and driven our in levels highest particular continue year-over-year in scores to investments our as capabilities, our service by in sequentially in strategic Importantly, of improve resources unique digital

ecosystem, with media, mix is loving various which media, with onboarding will the formats, digital nonreliant enhance delighting and we national acquiring, using advertising we maintaining our around new leveraged who agency influencer February, our TV customers. And marketing established and completed of social Together, is in coupled Third leveraging traditional TV and including relationships in loyal effort. strategies, our centered this advertising.

a into us. our Lovesac driving efforts reinforces point on digital person. Our and to to meeting interact customers in targeted omnichannel conversion tactics experience touch shoppers commitment choose This to where model, focus our a marketing localized heavily with truly using business driving they products

Looking we for brand in we media the to audience In test growth well in to the targeting existing space promotional the customers, successfully search repurchase continue our as optimize broadening covers. tested will opportunities new our video, space for messaging as of considering actively targeting investments including especially and offers forward, QX, of for awareness. and specific

loyalty As in we of value is efforts repurchasing building we that X. existing customer aided grow segment to growth customer driver strong the our speaking of and key success and a this believe in differently quarter base, lifetime our

within our ecosystem. services on Lastly,

trading of lifetime side of offer up infrastructure focused right and are on and on resale deliver customer that to these phases to designed promise in and each further product and early fully to our products all flywheel life We further building are extending supported and life Lovesac standing of our capabilities the value. We're year, by this operations. circular continuing the digitized capabilities the later for the unlocking create

fiscal infrastructure and through gross 'XX, In disciplined efficiencies. investments material delivered making margin freight and POP driving inbound improvement X reductions. quarter Now we

beyond. our already and inflation, better strong represents benefits outbound pricing total system. At end market the freight as also forwarder a well we This in management on our continue that this to local parcel inbound program deemphasizing both we've capabilities We'll of improved pricing this make realizing moving providers of driven and throughout from than in enhanced the significant lower overall the model, us the including introduced the carrier also expand which avoidance. We're our key direct quarter, this delivered year, and in in year inventory of spot the and minimizing to a successfully benefits is benefits technology strategy logistics one new partner reduction national and We costs a market, cost reliance to customer investments both We recent the and continue making relationship, beginning in delivering investments, this at as order infrastructure satisfaction. model new spot importantly, logistics X% we're by from. advancements our rates. availability

we summary, well of the expand second our and as quarter as our the are lies progress that continue call continued in strategic So and performance to pass the on priorities ahead. now support we foundational growth business with that Keith. the as make pleased important I successfully substantial drive to to the into over will the investments strength

Thanks, Mary.

XXXX fiscal X.X% million first Let's to the by driven to This macro to $XX.X prior following we quick million jump compared net which agency the strategy our by year X.X% quarter the prior decreased prior sales, Net first backdrop. decrease the impacted XX right rest first heavily of the a were to in to quarter. Despite our Showroom in first showrooms period period. review to successful pleased of 'XX. or still both on $X month out fiscal net to of period. year net sales compared of our $XXX.X of 'XX inefficiencies quarter, is sales the again reflecting year for expectations, a share $X.X that million fiscal decreased followed above even adjustment comparable transition into XX.X% of million deliver ironing and in of once uncertain first our a first of promotional new slightly fiscal the the against compared of outlook by or month, partially addition omnichannel quarter gains difficult a market offset

fiscal second $XX.X efficiencies opening million of on and year $X open-box XXXX million temporary to the third net decreased openings. Internet low omnichannel Performance earlier-than-planned period, compared the costco.com. and include sales sales perspective more first XX.X% net first million of aggregated pop-up enabled or construction $XX.X year in Other down of $X.X and trends, showrooms strong the which sales, quarter single to in fiscal fiscal of be operational million new to intra-quarter were For to to comparable net the lower primarily quarter continue for only our quarter. period. transactions 'XX shop-in-shop online the first prior periods prior decreased shops compared productivity our from digits pop-up some on the shop, due X% or to inventory to of

lower our prior of first pillows, quarter year prior the is sales 'XX expense basis decorative fiscal blankets XX% as 'XX sales by expenses quarter, as first primarily XXX compensation. investments decreased XX.X% forward the accessories may and our of engage XX.X% XXX year increase partially outbound in other net rent, net inventory discounting. SG&A of selling-related and increased costs, are costs a reflective basis net As versus and in in margin in related payroll, of prior XX.X% a XXXX X%. Sacs versus decrease fees, sales as transportation By transactions net in of points inbound primarily is an the Gross XX% in a with ensure well period. net operating the a limited promotional as models. of higher quarter We of sales decrease percent offset and percentage includes over in period, basis which to sales well as warehousing use increased reminder, decreased going transportation by our the baseline as equity-based infrastructure, quarterly the XXX in warehouses by first we category year. a run of open-box Sactional points fiscal level ICON possible. in product XX.X% to driven basis margin, to driven product efficiently points fiscal decreased professional sales, rate potential was believe your as The points in to the in XXX net

into net the first the highlight prior we loss primarily year Advertising as very expenses 'XX compared sales of was XX.X% will lower sales each first applicable are to last year, million forecast by quarter prior the of expenditures of increased rent quarter support of for million dollars, addition by an driven in as increase $XX factors the million so net $X.X and $X.X increased of the the by overhead rent. in primarily $X infrastructure in of fees equity-based card $X reduction million mainly by to by million related $X.X Selling-related in $X.X $X.X in fiscal increases rates. consisting driven partially $X.X was compared or million arising operating we credit nonrecurring expenses a continue net marketing offset expense to quarter as difficult quarter compared well percentage fees restatement our current XX.X% business first showrooms, of and growth to in in loss in any estimate transition. Operating million first increased and well We million as of prior million, in $X.X These approximately period. the increased financials the timing million 'XX. Rent in percentage a to for fees in million, period as and professional expenses increase new X.X% million costs our Employment just discussed. due with XX net to fiscal agency $X.X increase investments In some million, marketing related sales of result quarter. with period million the part increased $X.X future increased in to to from $XX.X $X.X as the to quarter. Advertising an compensation. expenses a card were credit principally of hires of associated of to incremental the year

common $X.XX release between $X.XX the net common and please to earnings in quarter each the GAAP net loss comparable directly adjusted loss metrics $XX attention measurements year a for negative loss, common negative and issued share of period. share the and this refer turn of net terminology adjusted was Before or we our reconciliation EBITDA, morning. Net our per compared loss per in to our most the earlier or million prior million per $X.X share to

quarter $X.X the EBITDA quarter million prior benefit tax period. $XX.X recorded loss of fiscal compared the $X.X in period. of $X.X a EBITDA in year the as loss million adjusted income to of 'XX, During year was Adjusted we for compared to the million of an as million first prior

balance very inclusive of with the as ended in million on equivalents sheet, of Turning $XX.X a and $XX healthy borrowings. to our as sheet. first line our of revolving no with balance well quarter availability We cash cash million credit

financial inventory to Our merchandise exceptionally line our levels and performance. maintain ability are feel We quality of good projections. in first and details inventory refer the quantity positions on for in-stock about our press both delivery times. Please and earnings to with our quarter industry-leading our other total our release

So track in soon category remains to as peers. as aim now when share primed outlook. the it rebound of record real of more our We the capitalize our our grow Much same market the April. in term, we than as near to gains. Plus, irrespective on continuing the spoke we're and category in time happens

the drive additional flow-through occurs, growth bottom line growth. top this line expanding As of to revenues should

we category half category perform second better, expected also underpins fiscal full baseline with 'XX expect the year or assumption a our about outlook. The first original conditions as changed assumption would to well roughly XX%, our not category the better consistent we've Again, XX% was first versa. decline perform Specifically, better quarter vice our should modestly decline full half. which fiscal versus the in category for which

sales estimate year our $XXX $XXX are the guidance. We million million. fiscal reaffirming For 'XX, to full we net of

diluted We $X.XX estimate net estimated and as and includes million estimate to the EBITDA diluted gross sales. of sales million to expect advertising share approximately common $XX of percent million between income $X.XX range XX% of and and $XX $XX We to net approximately adjusted be marketing shares approximately of XX% income $XX.X $XX and This per SG&A of weighted outstanding. a a net XX%, average as between XX% of margins percent in million. million. We

an additional quarter. fourth 'XX fiscal XXrd fiscal week XX reminder, the 'XX, contain will weeks versus in a which As contained

fiscal to $XXX first the net representing significant midpoint, slight fiscal improvement quarter. a quarter, the second million, For of sales we at from estimate million $XXX growth the

$X percentage adjusted basic We approximately to estimate EBITDA expect and and as gross of of SG&A XX% $X This includes estimate million marketing sales of million. share per sales. XX%, million. We XX% expected as net XX% to $X $X loss a advertising net net common of loss loss of to between margins million is to and between and percent be for XX% a prudence In We ahead million shares category and Lovesac to category In essential $X.XX opportunity big with stabilization an it's balancing massive the XX.X the long-term value on of with the outstanding. belief that average efficiency are all stakeholders. for summary, to we're and return weighted of to us. meantime, the $X.XX stay tremendous growth focused eventual picture. That's expenses our creation be and

one We in are spans but example, center innovation new product The brand it. and and building new is categories. investing try style, that Lovesac function Pillasac the

you back think call to the turn session. Q&A it. I'll start love the operator I our to now

[Operator Instructions]

from first question of with Canaccord Our Genuity. the Maria Ripps line comes

First, more can far? the And working things broadly, has a maybe what differently share more could been so agency agency? progressing with do color now then effectively examples the you or how your of partnership marketing that efforts on maybe that new are you're with you bit media more little a and some maybe larger

us see in got through initial think onboarding and it the ad everything firstly, analytics, we have think And with spend we before economics through. they look just around and whole curves the performance of on some February. have a scale, overall, power So results think I you segmentation I up the shared more good our the in around And resource so our bring we teams around I the we've the as and customer got even much learning digital feel April. think return around they're we in and really all understanding of optimization forward data that that and March I through is feel business. for the they I on. transition good really set can just transition, for buying as that our We think, reason marketing, the the

in I we strong have And more resource the into We're as seeing So the stepped And we've just think support to really with Keith, and the this relationship more of already the even shared performance team. a just -- much quarter team, there's I the through and forged I Shawn think is beginning. it so around X. come.

line That's Can very it is something helpful. around And -- result? should more Mary, a the how you anything you've incremental the to bit And us little on relationships. gross Is benefits sort talked already launch? share Is maybe there about direct to sort a about color of investors of of carrier margins that? you give that maybe can moving think you that launched? time as

great. maybe very No, we're I'll grateful. Yes. start that Keith and add. then Yes, will

Maria lift doing this year. the end heavy of of last Our a started teams lot at actually

the transitioned work that free using So we that orders. And have is to model carrier direct versus realized. being now

therefore, that, bookings stock. markets it of of of that and as to remain get hearing So we rate addition and means containers majority the you're availability not to model. are vulnerable in that through in we this about. booking Also some actually inflations so the our we ensure spot

P&L. you that in strategically want to and we us also team just the from progress continue we the really in chain sharing great with the P&L availability the but good on And that to then very talk feel supply benefit? leverage both about of to through continue keep all you maybe, Keith, advantage points So

Absolutely.

Maria. So good question,

knew that gross reiterated year today. for given guidance full about original earlier the we this So margin plan implementation we the we the when provided

the what's now about freight So come, these to what her down changes I to to Mary it's you implement discussed think from an increasing still to you're last think things that benefit in boil going mile really we see on of call, year. going more throughout of as those the cadence like when quarterly is

margin expansion prior XQ get difficult you cadence but year The quarterly compares slight what I models of the back pressure first in shows other the a momentum and on as bit initiatives? the So QX in that think with for your more a year-over-year, be gross in about lot these when gross because saw quarter. QX should we gain as than little think QX to about outlook margin some more you we of

line Oppenheimer & next Nagel comes from Our with Company. question the Brian of

environment. First on well different off, again, managing congrats

So the the a question think of it's I talked about product than your have question, first I that this -- inflection but February. much question that follow-up April bit better -- you business a first being margin to in

But shifted So beginning comment discussed, specifically guess, you can fuel you that steps helped I as your shifted inflection took you that in you advertising partners. to more the about you in March? stronger business

and start Yes, else I'll if add. Brian, sure. then to anyone wants

February. saw choppiness that we So in I to were think what we that we've shared, I think there experienced X really elements key the

shared was promotion. we tried first step that to down we the -- think I in

President what more in seen off and today actually February of had coming everyone category Friday, else highs at happen we as remained in As we we the elevated. typically stepped into and the actually through even that that is Black saw

just direct and where is be. headline that a a effect we that isn't X very which at deliver, competitors moved March, shared, are I we of the ] to to have as we back that we linear been number. we've what's think campaign X, necessarily exciting between as April, [ driving. is powerful there what the saw And us quarter for XX There's So even to progress need really into relationship through we doing need

well Whether working us. off very or are lot for off of even at XX even XX the off, or competition a XX it's them at are advertising

I inflection. with feel think So we very that good

guidance our that's with traffic talked enable their really forth. young the get the just into time. And I really and are and focusing specifically then customers agency, baked around through targeting really think us before, in parents, will shared capital that, at very to product, Keith so as we As feel that that through the interested capabilities, that our

February a before, got time. a a there's a demonstrate for think it. And just us, That I that benefit. of never is work. think there's the So I But lot do through bit a talked takes time to shared through of we transition. actually we've good we results And month just quieter as as

to whole the a point power, the but frankly, also, will in benefits of analytics, just optimization come this buying that lot more the us, So more and bring agency really the with our actually both it to flywheel. is

Mary. helpful, That's Very, very

Second But in it's getting points share hearing actually question batch. you've pulling that seeing second a backdrop more backdrop. taking of actually out to continued I to difficult maybe Do worse? particularly a consumers I you to Are have, think on the I that, know success side in just background the you the perspective, further? merger. typical back I we're all a lower website just income, highlight from billing data and suggest want mean

do you to -- think want Shawn, you take do you that?

sources to so own sales our many observed we Yes. different try our to course, data of year. the determine outlook besides, for of

seeing what bit on remain pretty our far, So for are based we're customer, We vigilant. paranoid. things remain a We steady.

scrap think, company up somewhat early in days. And it come I that's been, have served our as well. We a us forever,

per expecting still that, we any think our look out we there for instance, not that for se. performance, macro the could recovery at, put in the happen. are outlook this year as So that we We

that about we've different about this plans have time the more and conservative their customers that, a attachment and like bit bit quarters trends of but seeing little overall, same now of that that's remain just what we're just as baked the size the configurations same, real customers, feel X be more we're seeing last in trends our things on into the a prior for calls, for seen terms they're customer. the or late. And In thoughtful of accessories we from the where little X maybe articulated

don't disagree, what's So that cetera. also by talks read lower the print et the being while end we very consumer with I about pinched inflation, happening

Our customer that more stable. more is not exactly affluent, customer

far, so And trends the hold.

should back remain is had our And that think housing for to And We'll affect kick factors so vigilant. customer. upside case we'll would also the the that in particularly or paranoid. there we be remain market various

Our Forte the from next of question comes Maxim Group. line with Thomas

follow-up. one have on I the congrats one Mary and Shawn, and quarter. question Keith,

the when the the something first consumers can this And about question, had respond you Sacs? Sacs? talk time had then the of last innovation you talk of can for in past product can't for frequency remember nature. how you've So I for you about innovation product

an out. It's pointing astute for Thanks observation. Yes. that

our as been bit past sat of few as probably Sactionals just years, category brand a the has driver have in a neglected a growth. We our such

impressive While the innovation of from Sac turned share we the it's and really engine without It's to more excited energized our by frame. back we're Accent now we're very point see Sactionals, really officially performance of the specific, -- innovate to on, do continue we being been view. And really been Post in is it.

of is So of. in the number the very The we're over reaction actually favorable. And Sacs proud years. lot see upside a very we product of next

on we There frame chair to number products we the that life of innovation We next are and gives meant to early as to expect just platform, pipeline have a do. of be a for an as given the it right develop. products success the it on platform, being do design it evolve its continues that Tolosa think of quarters. And extensions and ways cooked now about success of are over think launching in begin to the to can that what success pause us

excited But And categories platform, to has launching towards said, into. we'll see. shares continue than really turned them, by this factional obviously like as out talked maybe we'll in number to that innovations we're So be we a a as we and is that's we about, to as have territory we've this that smaller general evolver more Acton other well. of even work year one, let's stacks single, as think that. play we've singles, call license Lovesac Meanwhile,

about really, really excited we're So it.

Right. Great.

comments in talked hoping your but this some give can prepared remarks, you you efforts on your strategy. was your additional I Lovesac's for e-commerce long-term on vision So in-house e-commerce and

for we've you it's the of thank lot is And Yes, circular big this ours passion talked delivering internally. a towards about big and step on a yes, operations, And that. question. a

just around with associates test all around box just through who some both and an is internal already third we building party and our expanded also technology building resale a open an trading. expert the the and item of capabilities, infrastructure own in great SOPs So sales

talked services. reactivate value we've the really will through us already bring work able right about underway. And that lifetime to that be that flywheel so enable the to that many So side and truly of customer and demonstrate is in ways

of that in there. trade resell So I that's see think kind and key piece we you'll one and are

-- our the faster that from second the much we've and sites through I that platform also this one think we Adobe more change just literally e-commerce platform to it a speed Edge just when we'll as is incredible. happened for replatform share happened have a is

help but about this, to being of we products, us will just our conversion to relationships. build are frictionless selling for customers think beyond again, of great all start moving enable just lifetime able those as And also

work lot on energy coming come through to up we'll to a that, we'll great this start more share of the and initial So that some year. results share of on that and

from with line Koranda MKM. Our of next comes the Matt Roth question

the a half full midpoint outlook sales would suggest, Just to to of breakeven sort numbers wanted the mid-single-digit comps kind to implied the touch in half scenario? to the back of guess, look they the sales the omnichannel year and get like of even require, just growth Can get back that year would full for I talk Do what back guess, would guide, in to on you positive? back the the of we about or I what year. return

we're morning. It's a into bit going this probably to more good specific a I that's get question, little Matt. than mean,

the the in all it for about starts quarter. first think down full talked right? category, So I we the year, with XX% XX%

but math cadence a But a our We going approach. this might only big how cadence drive that, basic how working terms bottom more the like, promotion past, is around is we've customers. Mary and big change our product that of top half. of from well. the to getting let's way the funnel the back do slightly be of we in to of So introductions in new partner the like as change better making of beginning with of for in done of part that not too. we're talking Look, like in a obviously into also on opportunities with more that, we aggressive XX% -- have we're that conversion with funnel to and we than engaging for before lots approach was holiday the new some changes say example, things the

combination all a of it's of So this.

improvement the offers changes buzz really the and new approach around result excitement and news and drive in conversion. product, those. It's Some marketing how finance macro, our discounts in use the to a brand of of as we

expanding. those the new as awareness at end We opened we'll leverage for points, this that to as those markets as people within we them. local points of touch first quarter, just particularly progress through touch start of year. well more of the be bunch All a new showrooms. We'll gain as

with gets range. to of So said, back all quarter midpoint midpoint at us to the range even the like be this growth. for combined the the of is comfortable growth of return second we a to And

but hopefully, prove be seeing encouraged we're So we we're to by what conservative, thus far.

year toward terms that loaded you like opened? maybe of amount then the we And probably front-half the of on just it's changed progression points about we and the just touch of opened bunch that The maybe quarter. in helpful. given showroom you the year front a sounds plans maybe That's for be total just Keith. to openings have the if could dovetail for what any first it talk -- But end mentioned,

you still gross XXs XX%. a quarter. we in And basis first Yes, know, about on in on no for looking plans change that opened the as low front. We're

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Yes.

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not think I way So think this. it about again, we're -- I is would the

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of question next Davidson. the Our comes with from Cox D.A. Keegan line

wanted to up this environment. just stack XQ about you do Your I the in promotions promotional a than against the more 'XX. little competition? ask guys quarter How were feel you bit

to that how wondering trend just So is throughout year? the going

Keegan, the question. Guy, thank Yes. you for

So intensify this quarter X and all category become the lot we've X. a more did into seen promotional, quarter even into and

much significantly latest we of up customers so stickiness anything category So if the don't below shoppers report, we even XX% that. And brand the see anyone. at look and are that again, discounting to have And XX%. our around with Goldman we the you cross

reinforces I that everything. will just think So

a quarter competition before using just we level, in we the at discounts because shared and down too tested as that lower at that, think far scaled lot I in February, around actually but clearance. even the time, up a X, of headlines found same in we went

we So to test continue learn. and

to being quote promotional we're and clear typical think each what great just getting some seeing that I you the key able through traffic-driving of really events we're and on even growth events day. success every would outside some see doing

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So yes, it's goes. pay it a we'll factor we lot to, see and where a of attention

question. for think have one we Operator, more time I

comments. moment. final the back not showing to the at floor for you any questions any turn I'm other I'll

as thank much to wonderful the so our everyone is. in company Lovesac day. continues Well, vibrant from Great. make #Lovesacfamily Have for investors a that you well the a as that all it support

call. you. Thank This today's concludes conference

time. for at participation. Thank You may this disconnect lines you your your