Business
The Lovesac Company Announces Third Quarter Fiscal 2020 Financial Results
Third quarter net sales growth of 25%Third quarter total comparable sales increase of 32.5%Comparable showroom sales up 27.1%,Comparable internet sales up
About this update from The Lovesac Company
[{"type":"text","content":"Third quarter net sales growth of 25%Third quarter total comparable sales increase of 32.5%Comparable showroom sales up 27.1%,Comparable internet sales up 47.7%\n STAMFORD, Conn., Dec. 12, 2019 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq:LOVE) (the “Company”) today announced its financial results for the third quarter of fiscal 2020, which ended on November 3, 2019. The Company announced its third quarter fiscal 2020 performance, including net sales growth of 25% and total comparable sales growth of 32.5% driven by increases in new customers as well as increases in average order value (AOV). New product introductions including the Sactionals PowerHub and Storage Seat have exhibited 45% attachment rates and have lifted the blended AOV of all Sactionals purchases (new and repeat) significantly. The Company stated it has made good progress on all strategic priorities including supply chain optimization, sourcing, growth of the pop-up shop business, and the successful launch of four permanent shop in shop locations within Macy’s stores intended as a test toward a larger program. Shawn Nelson, Chief Executive Officer, stated, “We are very pleased to have delivered better than expected third quarter Adjusted EBITDA results even with a slight top-line impact from a timing shift of showroom openings. This demonstrates our disciplined approach to managing the business while still achieving continued high growth.” The Company experienced a timing shift of showroom openings in the third quarter. These showrooms are expected to open in the fiscal fourth quarter for an ending showroom count of 91, or a 21% increase over last year. As a result of these third quarter shifts, the Company is narrowing its expected net sales growth range for the year to 40% - 42% (from 40% - 45% previously) and continues to expect positive Adjusted EBITDA for the full fiscal year. Nelson added, “The all-important fourth quarter is off to a great start with greater than 42% growth over fourth quarter last year and we are on track to deliver positive Adjusted EBITDA for the full fiscal year.” For the Thirteen Weeks Ended November 3, 2019 Net sales increased 25.0% to $52.1 million in the third quarter of fiscal 2020 from $41.7 million in the third quarter of fiscal 2019. This increase was driven by strong showroom, Internet and pop-up shop (which we previously r...