Business
The Lovesac Company Announces Second Quarter Fiscal 2020 Financial Results
Second Quarter Net Sales Increase of 44.8% Comparable Sales Increase 40.7% STAMFORD, Conn., Sept. 11, 2019 (GLOBE NEWSWIRE) -- The Lovesac Company
About this update from The Lovesac Company
[{"type":"text","content":"Second Quarter Net Sales Increase of 44.8% Comparable Sales Increase 40.7%\n STAMFORD, Conn., Sept. 11, 2019 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq:LOVE) today announced its financial results for the second quarter of fiscal 2020, which ended on August 4, 2019. Shawn Nelson, Chief Executive Officer, stated, “We reported a strong second quarter with revenue growth of close to 45%, as the entire team is executing our strategies to expand the Lovesac brand and deliver on our near and longer term goals. We are further strengthening our multi-channel model with the addition of productive new showrooms, the expansion of our pop up shop business at Costco and the announcement of a brand new shop in shop pilot with Macy’s that is expected to launch late in the third quarter, as well as increasingly effective advertising and marketing strategies.” Mr. Nelson continued, “Given our first half performance and our plans for the remainder of the year, we are reiterating our full year outlook for 40% to 45% revenue growth and positive Adjusted EBITDA. Importantly, this outlook includes the net impact from all announced Lists 1 through 4 tariffs to date that our teams continue to successfully mitigate through various means, with only minor price increases. We have reduced our manufacturing in China from 75% of our total manufacturing at the beginning of the year to 44% as of this month. We believe this puts us on a path to being completely out of China, if necessary, well before the end of next year. I would like to thank all of our teams as well as our vendor partners for their hard work and collaboration that have enabled this outcome.” For the Thirteen Weeks Ended August 4, 2019 Net sales increased 44.8% to $48.1 million in the second quarter of fiscal 2020 from $33.2 million in the second quarter of fiscal 2019. This increase was driven by strong showroom, Internet and pop up shop (which we previously referred to as shop in shops) performance with both transaction and ticket growth resulting from successful advertising and marketing strategies which drew new customers to the brand while also driving repeat purchase behavior. Comparable sales, which includes showroom and Internet sales, increased 40.7% compared to a 41.0% increase in the prior year period. Comparable showroom sales increased 31.8% and Internet sales increased 71.5%....