Business
The Lovesac Company Announces Second Quarter Fiscal 2021 Financial Results
Second Quarter Net Sales Increased 28.7%; Comparable Sales Increased 72.4%Net Loss Improves to $1.1 million; Adjusted EBITDA Improves to $2.2 million
About this update from The Lovesac Company
[{"type":"text","content":"Second Quarter Net Sales Increased 28.7%; Comparable Sales Increased 72.4%Net Loss Improves to $1.1 million; Adjusted EBITDA Improves to $2.2 million\n STAMFORD, Conn., Sept. 09, 2020 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq: LOVE) (“Lovesac” or the “Company”) today announced its financial results for the second quarter of fiscal 2021, which ended August 2, 2020. Shawn Nelson, Chief Executive Officer, stated, “I am very pleased with our team’s resiliency and ability to adapt as we continued to serve our customers in a rapidly changing operating environment. Our operational pivot to focus on digital channels while showrooms were closed or operating in a limited fashion, as well as our efficient marketing efforts, were very effective. We successfully positioned ourselves to capitalize on strong demand tailwinds resulting in second quarter sales growth of nearly 29% and comparable sales growth of approximately 72% versus the prior year period. Importantly, with operational discipline, we successfully managed both our top line as well as our bottom line, in a pandemic disrupted environment, driving an almost 28% increase in gross profit dollars, positive Adjusted EBITDA1 of $2.2 million and free cash flow of $9.9 million.” Mr. Nelson continued, “The environment remains uncertain and we will continue to be disciplined and flexible as we navigate a dynamic marketplace while remaining focused on advancing the initiatives that underpin our long-term growth strategy. We are working to deliver an elevated and more seamless omni-channel experience for our customers, making select strategic infrastructure investments to support our growth and creating efficiencies across the business as we continue to innovate and expand the Lovesac brand and our universe of loyal customers.” Key Measures for the Second Quarter and First Half of Fiscal 2021 Ending August 2, 2020:(Dollars in millions, except per share amounts) Quarter Ended August 2, 2020Quarter Ended August 4, 2019% Inc (Dec)First Half Ended August 2, 2020First Half Ended August 4, 2019% Inc (Dec)Net Sales$61.9$48.128.7%$116.3$89.130.5%Gross Profit1$31.1$24.327.9%$58.3$45.328.8%Gross Margin150.1%50.4%(31) bps50.2%50.8%(66) bpsTotal Operating Expense$32.1$29.29.8%$67.8$59.513.8%SG&A$23.4$22.06.5%$49.2$45.87.4%SG&A as % of Net Sales37.7%45.6%(785) bps42.3%51.4%(911) bpsAdvertising & Ma...