The Lovesac Company · NASDAQ:LOVE
The Lovesac — Q1 2026 Earnings Presentation
159 slides from The Lovesac's earnings presentation, Jun 12, 2025
Slide 1: Investor Day 2024
H December 17, 2024 Investor Day ® I N V ES T OR DA Y 2 0 2 4
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Reform Act of 1995 and other legal authority. Forward-looking st
Slide 3: Key CEO Takeaways through today
Key CEO Lovesac has a track record of profitable growth regardless Takeaways of macro or category conditions through today 2 superpowers driving huge market share gains: Designed For Life Products + Customer Acquisition Engines Massive TAM and household penetration opportunity ahead despite our 7 ye
Slide 4: Key CEO Takeaways looking forward
We are prudently investing in our brand and Key CEO capabilities to build the most loved brand in America Takeaways Our pace of innovation is increasing...FY25 was our looking biggest year of innovation, & we’re just getting started forward In months we’ll enter the $14B sofa market with our 3rd Des
Slide 5: Key COO Takeaways: Customer Acquisition Engines
Key COO Our Customer Acquisition Engines simplify highly complex products for efficient conversion Takeaways Customer Acquisition Engines Our model is profitable immediately and builds over time as customers invest in our platforms We marry digital, physical and partner models to meet the customer w
Slide 6: Key COO Takeaways: Growth Enablers
Key COO We have fortified our Insights and Innovation teams to Takeaways support rapid platform expansion Growth Enablers Our capital-light Supply Chain model unlocks speed and agility to catalyze profitable growth at scale Our frontline engagement is a competitive advantage as they continue to turn
Slide 7: Key CFO Takeaways
Key CFO We have massive secular growth potential Takeaways ahead We are uniquely positioned to capitalize on macro upside Our profitable growth strategy is entirely self- funded We retain optionality for excess capital to enhance ROIC and growth I N V ES T OR DA Y 2 0 2 4
Slide 8: at a Glance
at a Glance TTM(1) as of Q3 FY25 Key Financial Metrics NET SALES NET SALES GROWTH $689.6 million 0.2% (91.4% of Net Sales = Sactionals) (5 YEAR CAGR of 24.2%) GROSS PROFIT GROSS MARGIN $401.7 million 58.2% ADJ. EBITDA BALANCE SHEET $42.3 million $61.7 million cash and cash equivalents GEOGRAPHIC PRE
Slide 9: Shawn Nelson
Shawn Nelson Founder & Chief Executive Officer I N V ES T OR DA Y 2 0 2 4
Slide 10: Designed For Life since 1998
Designed For Life since 1998 I N V ES T OR DA Y 2 0 2 4
Slide 11: 25+ years of category-disrupting growth and just getting started
25+ years of category-disrupting growth and just getting started Chapter 1 Chapter 2 Chapter 3 Chapter 4 1998-2006 2007-2014 2014-2022 2022-onward Sac Specialty DTC Couch Home + Tech Brand Retailer Brand Lifestyle Brand $0-$6M $6-$60M $60-$650M $650-$Bs I N V ES T OR DA Y 2 0 2 4
Slide 12: 1998
I N V ES T OR DA Y 2 0 2 4 1998
Slide 13: 2002
I N V ES T OR DA Y 2 0 2 4 2002
Slide 14: 2006
I N V ES T OR DA Y 2 0 2 4 2006
Slide 15: 2010
I N V ES T OR DA Y 2 0 2 4 2010
Slide 16: 2016
I N V ES T OR DA Y 2 0 2 4 2016
Slide 17: IPO and stock listing imagery
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Slide 18: Growth on Growth
Growth on Growth Net Sales and Y/Y Growth 7.5% 0.2% 31% 55% +31% CAGR since FY18 37% 41% 33% 26% 23% 3% 63% 39% 23% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 TTM* I N V ES T OR DA Y 2 0 2 4 * Trailing Twelve Months (TTM) includes FY24 Q4 and FY25 Q1-Q3.
Slide 19: Sactional: The World's Most Adaptable Couch
~ ——SACTIONAL The World's Most Adaptable Couch
Slide 20: Sactionals
Sactionals.... LOVESAC INVESTOR DAY 2024
Slide 21: Sactionals
INVESTOR va® 2924 eo? i.” Sactionals..... LOVESAC rury ots*, FY ag - Be. al LOVESAC
Slide 22: Delivery in Days
Delivery in Days I N V ES T OR DA Y 2 0 2 4
Slide 23: Washable
Washable INVESTOR DAY 2024 LOVESAC i
Slide 24: Maintainable
Maintainable I N V ES T OR DA Y 2 0 2 4
Slide 25: 300 million plastic water bottles
“Designed For Life” Driven By Sustainable Inputs 82 82 Plastic 31 Plastic 966 Plastic Bottles Bottles 3 Bottles 1 Plastic Plastic Bottles Bottles From April 2018 to today, Lovesac repurposed more than 300 million plastic water bottles to make Sactionals I N V ES T OR DA Y 2 0 2 4
Slide 26: Movable
Movable I N V ES T OR DA Y 2 0 2 4
Slide 27: Accessorizable
Accessorizable I N V ES T OR DA Y 2 0 2 4
Slide 28: Upgradable
Upgradable I N V ES T OR DA Y 2 0 2 4
Slide 29: StealthTech
StealthTech I N V ES T OR DA Y 2 0 2 4
Slide 30: ChargeSide
ChargeSide I N V ES T OR DA Y 2 0 2 4
Slide 31: I N V ES T OR DA Y 2 0 2 4
F INVESTOR DAY 2024”, / . ‘ LOVESAC
Slide 32: Comfortable
Comfortable I N V ES T OR DA Y 2 0 2 4
Slide 33: Lovable
Lovable I N V ES T OR DA Y 2 0 2 4
Slide 34: Where are we today?
Where are we today? I N V ES T OR DA Y 2 0 2 4
Slide 35: World Class Operators
World Class Operators Shawn Nelson Mary Fox Keith Siegner Todd Duran John Legg Carly Kawaja Sam Martin Founder & CEO President & COO EVP & CFO CIO Chief Supply Chief People SVP, Strategy & Chain Officer Officer Growth A strong track record of scaling brands globally Experience across dozens of verti
Slide 36: 25 years of growth and we are just getting started
25 years of growth…and we are just getting started Chapter 1 Chapter 2 Chapter 3 Chapter 4 1998-2006: Sac Startup 2006-2014: Specialty Retailer 2014-2022: DTC Couch Brand 2022 onward: Lifestyle Brand $0M to $6M $6M to $60M $60M to $650M (Home + Tech ) $650M to $1.5B+ ~20% ~30% ~40% ~15% CAGR CAGR CA
Slide 37: Lovesac Can Be Tough to Define…
Lovesac Can Be Tough to Define… …More than a Furniture Company …More than a Specialty Retailer …More than a Merchant-led Assortment …More than a DTC Company I N V ES T OR DA Y 2 0 2 4
Slide 38: Defined…
… A Data-Driven Innovator Our customer obsession and deep insights drive innovation Defined… in both product and marketing … Inventor of Product Platforms Our expanding IP-moat of customized home + tech solutions is shaped by our "Designed For Life" approach … An Architect of Customer Acquisition En
Slide 39: Stated Mission
Stated Mission: To become the most loved brand in America I N V ES T OR DA Y 2 0 2 4
Slide 40: We think of our brand through the metaphor of an Oak Tree
We think of our brand through the metaphor of an Oak Tree, revered across cultures as a symbol of strength and endurance, of growth and renewal. They live for centuries and leave a lasting legacy, and we intend to build a brand I N V ES T OR DA Y 2 0 2 4 and a business that does the same.
Slide 41: Sacs and Sactionals branches
SACS SACTIONALS This brand tree has multiple branches but we as yet have only revealed two: Sacs and Sactionals. Each branch represents sizable addressable markets, which we uniquely approach through our two superpowers: Designed for Life product platforms that are built to last and designed to evol
Slide 42: SACTIONALS: Designed for Life Platform
CUSTOMER SACTIONALS: Designed for Life Platform ACQUISITION Drink Holders ENGINE Custom Covers Deep Side Brand & Performance Roll Arm Marketing Storage Seat Designer Collabs StealthTech Digital Configuration Angled Side Tray & Coaster Showroom Experience Charge Side AnyTable Recliner Partner Demonst
Slide 43: Our 2 Superpowers
Our 2 Superpowers Designed For LifeTM PRODUCTS CUSTOMER ACQUISITION ENGINES A High-Growth Capital-Light Profitable Business Model (and brand) I N V ES T OR DA Y 2 0 2 4
Slide 44: Superpower #1: Designed for Life Product Platforms
Superpower #1: Designed for Life Product Platforms Built to Last Designed to Evolve LOVEABLE ADAPTABLE If you don’t love it, you won’t keep it. Viscerally pleasing Life changes, and the products that support our lives design is a hallmark of the DFL approach. Fads, trends, or should change along wit
Slide 45: Designed For Life is not just a marketing slogan
Designed For Life is not just a marketing slogan Sactionals Usage Rearranged your Sactionals 68% Washed covers 62% Changed to deep or standard seating 29% 85% Leverage the Added seats Removed seats 19% 28% core value Changed the covers/fabric type 13% prop Changed arm or back style 7% Other (specify
Slide 46: Designed For Life Value Prop
Designed For Life Value Prop makes Sactionals the best-selling couch in America (as far as we can tell) I N V ES T OR DA Y 2 0 2 4
Slide 47: Stated Purpose
Stated Purpose: To Inspire Humankind to Buy Better to Buy Less I N V ES T OR DA Y 2 0 2 4
Slide 48: Customer Acquisition Engines
Customer Acquisition Engines Media, activations, PR, influencers, social, 1. Brand & Performance Marketing SEO, test-and-learn Complex products made simple online; 2. Digital Configuration Transact on customer's terms Complex products made simple in-person; 3. Showroom Experiences Transact on custom
Slide 49: Superpower #2: Customer Acquisition Engines
Superpower #2: Customer Acquisition Engines Lovesac LTV:CAC of 3.5, and reaches 174% of Brand & Performance Marketing initial LTV by Year 5 Digital Configuration Website conversion rate +30%, digital CSAT +490bps vs. FY23 Lovesac ~ 1.2 year payback, more than 50% faster Showroom Experiences than com
Slide 50: Our superpowers create a repeat and referral flywheel
Our 2 superpowers create a repeat and referral flywheel I N V ES T OR DA Y 2 0 2 4
Slide 51: Our superpowers create a repeat and referral flywheel
Our 2 superpowers create a repeat and referral flywheel Sactionals Source of Transactions Awareness 44% Repeat 34% Awareness from Transactions Word of Mouth FY24 I N V ES T OR DA Y 2 0 2 4 Source: Lovesac Quarterly CSAT Survey, Q3 2024 Source: Sactionals Owners Research, 2024
Slide 52: Cultivating the Next Generation of Lovesac Customers
Cultivating the Next Generation of Lovesac Customers Travis Barker & Heidi Klum Lizzo Kourtney Kardashian Wiz Khalifa Dov Cameron Belly Ashley Iaconetti Jax Taylor & Brittany Cartwright Soulja Boy Tony Hawk Lil’ Jon Gronk Ariana Grande Damar Hamlin Gretchen Rossi Devonta Smith Logan Paul D’Amelio Fa
Slide 53: Key CEO Takeaways through today
Key CEO Lovesac has a track record of profitable growth regardless Takeaways of macro or category conditions through today 2 superpowers driving huge market share gains: Designed For Life Products + Customer Acquisition Engines Massive TAM and household penetration opportunity ahead despite our 7 ye
Slide 54: Our Strategic Outlook
Our Strategic Outlook I N V ES T OR DA Y 2 0 2 4
Slide 55: Tough Macro-economic Backdrop
Tough Macro-economic Backdrop Existing Home Sales (in M Units) 30 Year Fixed Mortgage Rate 7.08 7.0% 6.9% 5.5% 6.12 4.1% 3.4% 3.2% 4.62 4.12 4.09 2006 2007 2009 2012 2015 2017 2020 2023 2005 2008 2010 2011 2013 2014 2016 2018 2019 2021 2022 2024* 2019 2020 2021 2022 2023 2024 I N V ES T OR DA Y 2 0
Slide 56: The home category has been especially volatile of late
The home category has been especially volatile of late U.S. Furniture Retail Sales Growth Estimates Calendar YoY Growth Rate % Pandemic Return to Category Norms Reduced demand for furniture in Great Financial ~+16% a challenging macro environment Avg per year Crisis Low-to-mid single digit growth pe
Slide 57: Lovesac outperforms the category and competitors
Lovesac outperforms the category and competitors Consistent share gains in the Home category ahead of key competitors LTM Revenue(1)(2) CATEGORY(3) vs. FY24 vs. FY20 196% 149% 28% 22% 17% 0.2% 1% -4% -3% -5% -3% -1% -10% -16% I N V ES T OR DA Y 2 0 2 4 (1) FY25 TTM is the Trailing Twelve Months (FY2
Slide 58: We've driven sustained share gains against both tailwinds and headwinds
We've driven sustained share gains against both tailwinds and headwinds Lovesac Share of Sectionals + Audio Market +4.2pts 7.2% 6.4% 4.6% 5.1% 3.8% 3.0% 2006-18 FY20 FY21 FY22 FY23 FY24 FY25E +1.6 share points +2.6 share points during historic tailwinds during historic headwinds Source: Lovesac Seat
Slide 59: Barely scratching the surface of the opportunity ahead
Yet we are barely scratching the surface of the opportunity ahead – less than 1% Household Penetration New Customer Count Household Penetration 155,623 1.1M 1.1M 133,941 cumulative 120,351 105,336 79,252 131.4M 64,686 51,858 Households 38,423 42,550 42,732 in the US 2015 2016 2017 2018 2019 2020 202
Slide 60: For years we have shared this view of our TAM…
For years we have shared this view of our TAM… Competing in the home audio industry increases opportunity 2024 Couch, Seating & Chair 2024 Couch + Home Audio Market Market Lovesac Market Lovesac Market Share 1.7% Share, 1.5% couches, 28% seating & chairs $38.6 billion $41.7 billion $46.2 billion $14
Slide 61: …but we've refined our view of our TAM
…but we've refined our view of our TAM Today FY26 FY27+ $9.5B $46.2B $152.9B Entrench our leadership in Launch new platforms to further Enter new rooms of the home to Sectionals + Audio disrupt All Seating + Audio play in Total US Home +Audio ❑ Continue to innovate against the ❑ Entered additional T
Slide 62: Our Territory
Our Territory I N V ES T OR DA Y 2 0 2 4
Slide 63: Home: Our Blue Ocean
Home $148B Our Blue Ocean Tech Services $120B $120B I N V ES T OR DA Y 2 0 2 4
Slide 64: Our Customer Focus
Our Customer Focus 45% of the US Population Premium Pragmatists Family Pleasers Stylish Sophisticates Engaged comfort seating Family-oriented consumers Engaged comfort seating consumers that are willing whose lives and comfort consumers who prioritize to pay a premium for seating purchase decisions
Slide 65: Our Customer Today: higher income & concentrated in age
Our Customer Today: higher income & concentrated in age Household Lovesac Buyers 82% Income > $100k US Population 41% Lovesac Buyers 54% Aged 35-54 US Population 34% I N V ES T OR DA Y 2 0 2 4 Source: Lovesac Seating Demand Landscape, 2024
Slide 66: Leverage Designed for Life products and Customer Acquisition Engines to penetrate 3M homes
We will leverage Designed for Life products and Customer Acquisition Engines to penetrate 3M homes and aim to build the most loved brand in America I N V ES T OR DA Y 2 0 2 4
Slide 67: Expansion: New Designed for Life Platforms
Expansion: New Designed for Life Platforms I N V ES T OR DA Y 2 0 2 4
Slide 68: We will continue to build the Sacs and Sactionals platforms
We will continue to build the Sacs and Sactionals platforms through differentiated top-quality innovation at an accelerated pace, and additionally we will bring 3 new branches to market over the next three years, leveraging the I N V ES T OR DA Y 2 0 2 4 infrastructure we’ve built to drive profitabl
Slide 69: Our first two decades were firmly focused on two DFL Product Platforms
Our first two decades were firmly focused on two DFL Product Platforms Establishing the World’s Establishing the World’s Most Comfortable Seat® Most Adaptable Couch® Sectional + Audio Market $9.5B Lovesac Market Share 7% Source: Lovesac Seating Demand Landscape, 2024 I N V ES T OR DA Y 2 0 2 4 Sourc
Slide 70: The past 5 years have focused on enhancing these 2 platforms
The past 5 years have focused on enhancing these 2 platforms FY20 FY21 FY22 FY23 FY24 SACS SACTIONALS I N V ES T OR DA Y 2 0 2 4
Slide 71: FY 2025 Has Been Our Most Prolific Year for Product Launches Ever
FY 2025 Has Been Our Most Prolific Year for Product Launches Ever I N V ES T OR DA Y 2 0 2 4
Slide 72: Our Pace of Innovation is Increasing
Our Pace of Innovation is Increasing Just a few of the introductions this year Custom Fabric Surface Product Insert Protectors AnyTable Revitalization Optimization I N V ES T OR DA Y 2 0 2 4
Slide 73: The Pillowsac Accent Chair
The Pillowsac Accent Chair 50% repeat customers sold out within first month I N V ES T OR DA Y 2 0 2 4
Slide 74: Sacs Energy Drivers: Collabs and Seasonal Collections
Sacs Energy Drivers: Collabs and Seasonal Collections I N V ES T OR DA Y 2 0 2 4
Slide 75: Home: Our Blue Ocean
Home $148B Our Blue Ocean Tech Services $120B $120B I N V ES T OR DA Y 2 0 2 4
Slide 76: StealthTech
StealthTech will Connect Current & New Platforms AN UNPARALLELLED, IMMERSIVE SURROUND SOUND EXPERIENCE Dolby Digital 5.1 surround sound by harman/kardon and convenient wireless charging all seamlessly embedded inside the endlessly adaptable Sactionals platform. I N V ES T OR DA Y 2 0 2 4
Slide 77: The World's Most Innovative Recliner
The World's Most Innovative Recliner (launched November 2024) $4B Motion Furniture TAM (including 25% of sectionals sales) Invisible functionality Wall-Hugging Recline Deep/Wide Flexibility Safety Built In Source: Lovesac Seating Demand Landscape, 2024 I N V ES T OR DA Y 2 0 2 4 Source: Mintel Group
Slide 78: 2 Years of Engineering & Design
2 Years of Engineering & Design I N V ES T OR DA Y 2 0 2 4
Slide 79: First of its Kind Reverse-Compatible, Reconfigurable Recliner
First of its Kind Reverse- Compatible, Reconfigurable Recliner I N V ES T OR DA Y 2 0 2 4
Slide 80: First of its Kind Reverse-Compatible, Reconfigurable Recliner
First of its Kind Reverse- Compatible, Reconfigurable Recliner I N V ES T OR DA Y 2 0 2 4
Slide 81: I N V ES T OR DA Y 2 0 2 4
I N V ES T OR DA Y 2 0 2 4
Slide 82: I N V ES T OR DA Y 2 0 2 4
I N V ES T OR DA Y 2 0 2 4
Slide 83: Home: Our Blue Ocean
Home $148B Our Blue Ocean Tech Services $120B $120B I N V ES T OR DA Y 2 0 2 4
Slide 84: Services Will Cultivate Long-Term Customer Relationships
Services Will Cultivate Long-Term Customer Relationships Resale Enabling a secondhand market for customers to buy pre-loved pieces at attractive prices to enhance their Designed for Life product platforms Trade-In Delivering customers a lifetime of flexibility by enabling trade-in of owned pieces fo
Slide 85: FY 2025 Our Biggest Year of Innovation Yet
FY 2025 Our Biggest Year of Innovation Yet I N V ES T OR DA Y 2 0 2 4
Slide 86: Sacs Sactionals
SACS SACTIONALS I N V ES T OR DA Y 2 0 2 4
Slide 87: I N V ES T OR DA Y 2 0 2 4
I N V ES T OR DA Y 2 0 2 4
Slide 88: StealthTech and Services will connect all branches
StealthTech and Services will connect all of STEALTHTECH the branches (platforms and rooms) creating a powerful whole home ecosystem & SERVICES I N V ES T OR DA Y 2 0 2 4 that drives brand love.
Slide 89: 3 Sactionals-Sized DFL Platforms to Launch Over the Next 3 Years
3 Sactionals-Sized DFL Platforms to Launch Over the Next 3 Years FY25 FY26 FY27 FY28 Sacs PACF Kid Super – Puffer Sac Quickship: Limited Edition Partnership Limited Edition Partnership Limited Edition Partnership Sac & Blue Sac Pine Quilted Activation Activation Activation Anytable Seasonal Throw Pi
Slide 90: New Platform 1: a huge TAM opportunity with minimal cannibalization
New Platform 1: a huge TAM opportunity with minimal cannibalization Recliner $4B Similarly fragmented market to sectionals with a large TAM Sectionals+ $9.5B Sofa/Loveseat $14B Customer value prop differs from what Sactionals delivers in both benefits and price expectations Remaining Seating (outsid
Slide 91: The Customer Opportunity: widening the aperture on our portfolio
The Customer Opportunity: widening the aperture on our portfolio to attract new customers and need states Household Lovesac Buyers 82% Income > $100k US Population 41% Under $100k Income Customer Opportunity Lovesac Buyers 54% Aged 35-54 US Population 34% Younger and Older Customer Opportunity Opens
Slide 92: EverCouch Sacs Sactionals
EVERCOUCH SACS SACTIONALS I N V ES T OR DA Y 2 0 2 4
Slide 93: EverCouch by Lovesac, NEW mid-year FY26
EverCouch by Lovesac, NEW mid-year FY26 I N V ES T OR DA Y 2 0 2 4
Slide 94: EverCouch: a Simple 1, 2, 3 Seat DFL Sofa Solution
EverCouch: a Simple 1, 2, 3 Seat DFL Sofa Solution PRODUCT FAMILY SOFA CUSHION OPTIONS ARM STYLES Seating Options Loveseat Cushion Options Track Swept Tapered I N V ES T OR DA Y 2 0 2 4
Slide 95: I N V ES T OR DA Y 2 0 2 4
INVESTOR DAY 2024 LOVESAC
Slide 96: I N V ES T OR DA Y 2 0 2 4
INVESTOR DAY 2024 LOVESAC
Slide 97: I N V ES T OR DA Y 2 0 2 4
INVESTOR DAY 2024 LOVESAC
Slide 98: EverCouch Reveal
EverCouch Reveal Components Cover Options MULTIPLE ARM STYLES REPREVE INSERT LINER INTERIOR FRAME CUSHION & BACK PILLOW BRAND PRINT INSIDE BEAM CONNECTION METHOD CIRCULUAR FEET I N V ES T OR DA Y 2 0 2 4
Slide 99: Significantly differentiated from the competition…
Significantly differentiated from the competition… BENEFIT EVERCOUCH COMPETITION FABRICS Upholstered-look Removable Covers ✓ Machine Washable ✓ Variety of Quick Ship/Stock Options ✓ ✓ CUSTOMIZATIONS Multiple Fill Options ✓ ✓ Multiple Arm Style Options ✓ ✓ FUNCTIONALITY Hidden Storage In Every Seat ✓
Slide 100: …and from Sactionals to minimize interaction
…and from Sactionals to minimize interaction BENEFIT SACTIONALS EVERCOUCH DESIGNED TO EVOLVE Rearrangeable ✓ Expandable ✓ Changeable Style ✓ ✓ Moveable ✓ Less modular BUILT TO LAST Maintainable ✓ Less modular Replaceable Components ✓ Less modular Platform-specific Upgradeable Components ✓ over time
Slide 101: EverCouch Customer Acquisition Engine
CUSTOMER EVERCOUCH ACQUISITION Built to Last ENGINE Designed to Evolve Platform Extensions… Brand & Performance Marketing Digital Configuration Showroom Experiences Partner Demonstrations Like everything Lovesac does, EverCouch will have its own Designed for Life product roadmap and will be wrapped
Slide 102: Customer Acquisition Engines Tailored to Each Platform
Customer Acquisition Engines Tailored to Each Platform Brand & Performance Digital Showroom Partner Customer Marketing Configuration Experiences Demonstrations Relationships SACS SACTIONALS EVERCOUCH NEW ROOM NEW PRODUCT PLATFORMS FY27 NEW ROOM NEW PRODUCT PLATFORMS FY28 I N V ES T OR DA Y 2 0 2 4
Slide 103: Entering two new rooms of the home
EVER COUCH SACS NEW ROOM FY27 SACTIONALS NEW ROOM FY28 In addition to EverCouch, we will be entering two new rooms of the home over the next three years with similarly competitive Designed for Life product platforms… I N V ES T OR DA Y 2 0 2 4
Slide 104: All connected by StealthTech and Services
EVERCOUCH SACS NEW ROOM FY27 SACTIONALS NEW ROOM FY28 …all connected by StealthTech and Services STEALTHTECH & I N V ES T OR DA Y 2 0 2 4 SERVICES
Slide 105: Key CEO Takeaways looking forward
We are prudently investing in our brand and Key CEO capabilities to build the most loved brand in America Takeaways Our pace of innovation is increasing...FY25 was our looking biggest year of innovation, & we’re just getting started forward In months we’ll enter the $14B sofa market with our 3rd Des
Slide 106: I N V ES T OR DA Y 2 0 2 4
I N V ES T OR DA Y 2 0 2 4
Slide 107: Mary Fox and Sam Martin
Mary Fox President and COO Sam Martin SVP, Strategy & Growth I N V ES T OR DA Y 2 0 2 4
Slide 108: Customer Acquisition Engines
Customer Acquisition Engines I N V ES T OR DA Y 2 0 2 4
Slide 109: Our 2 Superpowers
Our 2 Superpowers Designed For LifeTM PRODUCTS CUSTOMER ACQUISITION ENGINES A High-Growth Capital-Light Profitable Business Model (and brand) I N V ES T OR DA Y 2 0 2 4
Slide 110: Customer Acquisition Engines
Customer Acquisition Engines Media, activations, PR, influencers, social, 1. Brand & Performance Marketing SEO, test-and-learn Complex products made simple online; 2. Digital Configuration Transact on customer's terms Complex products made simple in-person; 3. Showroom Experiences Transact on custom
Slide 111: Brand Marketing and Driving Awareness
1. Brand Marketing and Driving Awareness AWARE FAMILIAR 3% 63% +4pts RESEARCH Unaided Brand Aided Brand Awareness Awareness Awareness improvement from LY Pottery Barn: 7% Pottery Barn: 92% CONSIDER West Elm: 6% West Elm: 68% RH: 2% RH: 55% Arhaus: 2% Arhaus: 40% PURCHASE LONG TERM RELATIONSHIPS I N
Slide 112: Initial purchase drives immediate CAC payback
Initial purchase drives immediate CAC payback Sactionals Initial Purchase Yr 1 Gross Margin LTV by Cohort $3,970 FY24 Initial Purchase, $2,275 +15% vs. 2019 $2,086 $2,099 3.5x $2,017 FY24 LTV:CAC Ratio GM LTV: $2,275 $1,801 CAC: $654 2020 Cohort 2021 Cohort 2022 Cohort 2023 Cohort 2024 Cohort I N V
Slide 113: Our customers stay engaged in the funnel
Our customers stay engaged in the funnel as they seek to live with and optimize their investment… Sactionals Sactionals Additional Post Purchase Interaction Repeat Products Purchased Seats/ 39% Sides 87% Post purchase 44%Repeat Covers 36% interaction Transactions Tech/A FY24 ccesso 21% ries Sacs 6%
Slide 114: …and the longer customers own, the more they invest
…and the longer customers own, the more they invest FY20 Cohort Sactionals Gross Margin LTV $3,139 By Yr 5 LTV is 174% $2,700 of initial purchase gross margin $2,261 $2,111 $1,801 Initial Purchase Y2 Y3 Y4 Y5 I N V ES T OR DA Y 2 0 2 4
Slide 115: Our Most Engaged Customers are Even More Valuable
Our Most Engaged Customers are Even More Valuable as they purchase across multiple platforms, and this will increase with our new platform launches EVERCOUCH SACS Starting NEW ROOM FY27 FY26 SACTIONALS 2.5X NEW ROOM FY28 STEALTHTECH & SERVICES Single Platform Multi Platform Future Multi Platform Pur
Slide 116: Digital, Showroom and Partner channels to transact on their terms
Digital Configuration, Showroom Experiences and Partner Demonstrations to allow the customer to transact on their terms Digital Physical Partners I N V ES T OR DA Y 2 0 2 4
Slide 117: World Class Digital Configuration
2. World Class Digital Configuration A dynamic showcase Unique configurators Dynamic, inspiring, Frictionless physical & of Designed For Life to personalize and UGC content digital quote through to product platforms core modular SKU's that motivates post-purchase experience I N V ES T OR DA Y 2 0 2
Slide 118: Physical Showrooms are Brand Amplifiers
3. Physical Showrooms are not just stores – They are Brand Amplifiers Our small format footprint and zero inventory model unlocks high visibility in the best real estate locations with showrooms ranging from 1,000-2,000 sq ft. 400+ 255 Today Future I N V ES T OR DA Y 2 0 2 4
Slide 119: I N V ES T OR DA Y 2 0 2 4
eetNVESTOR DAY 2024.
Slide 120: I N V ES T OR DA Y 2 0 2 4
I N V ES T OR DA Y 2 0 2 4
Slide 121: I N V ES T OR DA Y 2 0 2 4
: = INVESTOR DAY 2024 LOVESAC
Slide 122: Our Showrooms are great investments on their merits
Physical: Our Showrooms are great investments on their merits 255 $1.8M Avg 4-Wall Showrooms in FY25 Net Sales(1) 1.2 yrs 28% Web lift in new-market post- 4-Wall Payback opening Key focus is delivering simple demos of our complex Designed for Life platforms I N V ES T OR DA Y 2 0 2 4 (1) Showrooms o
Slide 123: Partnership Demonstrations
4. Partnership Demonstrations Partnerships play a key role in efficiently driving awareness and relevance… Costco has over 120M US members while Best Buy is synonymous with technology I N V ES T OR DA Y 2 0 2 4
Slide 124: Customer Relationships: Industry leading CSAT & NPS
5. Customer Relationships: Industry leading CSAT & NPS... 86.2 64.5 CSAT Q3 FY25 NPS Q3 FY25 +310 bps 2x CSAT improvement Ahead of North American from Q3 FY23 retail average I N V ES T OR DA Y 2 0 2 4 Source: Lovesac Quarterly CSAT Survey, Q3 2024 Source: Verint NPS Tracking, Q3 2024
Slide 125: Robust measurement enables us to improve the customer experience
Robust measurement enables us to improve the customer experience at every step of their journey Obsessed with Brand Love throughout the Omnichannel Journey Capture more than 30 metrics across the Customer Experience to continuously improve CSAT I N V ES T OR DA Y 2 0 2 4
Slide 126: The Power of Our Customer Love
The Power of Our Customer Love: a highly engaged installed base… Brand Affinity Love them Like them 53% 36% 89% Future Purchase Intent Definitely will Probably will 47% 33% 80% I N V ES T OR DA Y 2 0 2 4 Source: Lovesac Quarterly CSAT Survey, Q3 2024
Slide 127: …that become our most effective marketers
…that become our most effective marketers Brand Advocacy New Customer Source of Awareness I would keep my opinion to myself 1% Word of Mouth Media 34% 31% Share opinion if 42% prompted Share my 58% opinion unsolicited 35% All Other I N V ES T OR DA Y 2 0 2 4 Source: Lovesac Quarterly CSAT Survey, Q3
Slide 128: Purchasers who did not consider any other retailer
4 in 10 of Lovesac Purchasers said they “did not consider any other retailer” If any ARE considering another brand… one other brand in final consideration (on average) vs. industry’s 5.5 I N V ES T OR DA Y 2 0 2 4 Source: Lovesac Quarterly CSAT Survey, Q3 2024
Slide 129: Our customers in action
Our customers in action “I have had my Sactional for a little over 3 years now and “I started my Lovesac Sactional 4 years ago. just upgraded it with the StealthTech. It's truly Since then, I have changed the color once, amazing, the sound quality is better than expected and has configuration more t
Slide 130: Key COO Takeaways
Key COO Our Customer Acquisition Engines simplify highly complex products for efficient conversion Takeaways Our model is profitable immediately and builds Customer Acquisition over time as customers invest in our platforms Engines We marry digital, physical and partner models to meet the customer w
Slide 131: Our Growth Enablers
Our Growth Enablers I N V ES T OR DA Y 2 0 2 4
Slide 132: Insights & Innovation
Insights & Innovation Brand vs. Retailer Inventors vs. Speed to Mentality Merchants Market We deeply research and We use that research to Strengthening these understand our customer develop new-to-the-world capabilities to significantly needs which feeds our product inventions that are built to last
Slide 133: All that muscle has allowed us to turbocharge our innovation…
All that muscle has allowed us to turbocharge our innovation… FY20 FY21 FY22 FY23 FY24 FY25 I N V ES T OR DA Y 2 0 2 4
Slide 134: …and feeds the pipeline for years to come
…and feeds the pipeline for years to come FY25 FY26 FY27 FY28 Sacs PACF Kid Super – Puffer Sac Quickship: Limited Edition Partnership Limited Edition Partnership Limited Edition Partnership Sac & Blue Sac Pine Quilted Activation Activation Activation Anytable Seasonal Throw Pillow Sactionals Reclini
Slide 135: We have built an Advantaged Supply Chain
We have built an Advantaged Supply Chain Diversified geographic vendor base with redundancy and unmatched quality SKU-light and optimized model enables deep in-stock position and scale economies 3PL network partnership enables delivery within days using standard carriers Speed-to-market allows for u
Slide 136: Diversified Geographic Spread of Long-Term Vendor Partners
Diversified Geographic Spread of Long-Term Vendor Partners ROW FY26+ FY25 19% 49% 22% 8% 1% < 1% FY23 46% 29% 18% 6% <1% 1% I N V ES T OR DA Y 2 0 2 4
Slide 137: 44% More Efficient vs Competition
44% VS COMPETITION More Efficient Sactionals can fit an average of 65 3-seat couches in a container vs. 45 for competition 65 45 3-seat couches 3-seat couches I N V ES T OR DA Y 2 0 2 4
Slide 138: Supply Chain Transformation for Scaled Growth
Supply Chain Transformation for Scaled Growth Inbound 3P Warehousing Outbound COMPLETE IN PROGRESS IN PROGRESS • ERP implementation of both transportation and order management systems (TMS and OMS) • Reduced exposure to spot market by > 95%+ • Established partnerships to transform network strategy a
Slide 139: We deliver in days of receiving the order
We deliver in days of receiving the order (vs. industry standard weeks) Network Today Network by FY26 Gnd Svc Days 1 2 3 4 I N V ES T OR DA Y 2 0 2 4
Slide 140: Our #1 Core Value: Winner Culture
Winner Culture OUR #1 TOP AMBITION: We are united in purpose and passionate about our vision as we drive CORE VALUE to achieve results that exceed expectations. I N V ES T OR DA Y 2 0 2 4
Slide 141: Our Winner Culture…
Our Winner Culture… 66% +10pts Total Enterprise above North America Engagement Retail average 78% +22pts Showroom Manager above North American Engagement Retail average I N V ES T OR DA Y 2 0 2 4
Slide 142: …United by Mission, Purpose and Shared KPIs
…United by Our Stated Mission: Our Stated Purpose: Our Shared KPI’s: To build the most loved to inspire humankind to Every associate from brand in America buy better to buy less CEO to the front line is bonused on: and triple our household penetration 1) financial performance to 3M homes by 2030 and
Slide 143: The Winner Culture delivers best-in-class performance
The Winner Culture delivers best-in-class performance in market share gains and brand love LTM vs. FY20 LTM vs. FY24 196.0% 0.2% 64.5 NPS Q3 FY25 2x Ahead of North American -4% -10% retail average Lovesac Category I N V ES T OR DA Y 2 0 2 4 Source: BOA Category Data through Q3 2024
Slide 144: World Class Operators to deliver growth ambitions
World Class Operators to deliver growth ambitions Shawn Nelson Mary Fox Keith Siegner Todd Duran John Legg Carly Kawaja Sam Martin Founder & CEO President & COO EVP & CFO CIO Chief Supply Chief People SVP, Strategy & Chain Officer Officer Growth A strong track record of scaling brands globally Exper
Slide 145: Key COO Takeaways
Key COO We have fortified our Insights and Innovation teams to Takeaways support rapid platform expansion Growth Enablers Our capital-light Supply Chain model unlocks speed and agility to catalyze profitable growth at scale Our frontline engagement is a competitive advantage as they continue to turn
Slide 146: Keith Siegner
Keith Siegner Chief Financial Officer I N V ES T OR DA Y 2 0 2 4
Slide 147: Our Financial Outlook
Our Financial Outlook I N V ES T OR DA Y 2 0 2 4
Slide 148: An Enviable Opportunity
An Enviable Opportunity Multi-Year Financials Algorithm Tremendous Runway Opportunity Ahead Starting from a Position of Foundation Strength I N V ES T OR DA Y 2 0 2 4
Slide 149: Our business has grown significantly
Our business has grown significantly: far in advance of the market Net Sales ($M) FY25 TTM Revenue(1)(2) CATEGORY(3) vs. FY24 196% +24% vs. FY20 CAGR $689.6 149% 28% 22% 17% $233.4 0.2% 1% FY20 FY25 TTM -4% -3% -3% -1% -5% -10% -16% (1) FY25 TTM is the Trailing Twelve Months (FY24 Q4, FY25 Q1-Q3). (
Slide 150: Operational Excellence Drove Higher Gross Margin
Operational Excellence Drove Higher Gross Margin Gross Margin (%) +340 bps vs FY19 58.2% 57.3% 54.8% 54.5% 54.9% 52.8% 50.0% FY19 FY20 FY21 FY22 FY23 FY24 FY25 TTM* * FY25 TTM is the Trailing Twelve Months (FY24 Q4, FY25 Q1-Q3). I N V ES T OR DA Y 2 0 2 4
Slide 151: Material Inflection in Profitability
Material Inflection in Profitability Adj EBITDA ($M) Diluted EPS ($) Free Cashflow(2) ($M) $0.34 $42.3 $28.2 -$3.28 -$18.4 $3.4 FY19 FY25TTM(1) FY25 TTM(1)9 FY19 FY25 TTM (1)9 FY19 FY25 TTM(1)9 Profitability improved despite investing in people, touchpoints, product, digital, and systems for scalabl
Slide 152: Strong Balance Sheet
Strong Balance Sheet Inventory Cash $ Inventory in thousands $ Cash in thousands $154,481 $61,691 $116,625 $113,455 $37,738 $3,832 FY23 Q3 FY24 Q3 FY25 Q3 FY23 Q3 FY24 Q3 FY25 Q3 o Reduction of 27% vs. Q3 FY23 despite new SKUs o Significant increase in seasonal-low cash o High in-stock ratios mainta
Slide 153: Runway: Value Creation Model
Runway: Value Creation Model Superpower #1 Superpower #2 Designed For LifeTM CUSTOMER ACQUISITION ENGINES DFL Products Digital Physical Partners o Existing Platforms o The heart of the o Brand amplifiers o Expand awareness • More market Lovesac's o Highly efficient and strong financials share relati
Slide 154: Runway: Margin Expansion
Runway: Margin Expansion Robust scalable foundations set up fixed cost leverage thereby driving margin expansion Gross Margin Advertising & Marketing SG&A o 59-60% long-term o Balance brand building o Leverage even without o No tariff impact with driving sales category growth considered o Increase e
Slide 155: Runway: Informed Capital Allocation
Runway: Informed Capital Allocation Reinvest in the Business Excess Capital o Brand o Opportunistic share o New product platforms repurchases o Digital ecosystem moat • $36.6 mil available o Showroom/Partner share repurchase expansion authorization • Capex $20-25 mil Long Term Thinking + IRR Based F
Slide 156: A Powerful Multi-year Algorithm
A Powerful Multi-year Algorithm Normalized Year FY26 Guardrails Net Sales +10% to +15% +7% to +12% Secular Out-Performance +10% to +15% +10% to +15% Implied Category 0% (-3%) GM %(1) 59% to 60% ~59% Adv & Mkt ~12.5% ~12.5% Adj. EBITDA +50 bps to +100 bps +100 bps to +150 bps EPS(2) >25% >100% (1) No
Slide 157: Key CFO Takeaways
Key CFO We have massive secular growth potential Takeaways ahead We are uniquely positioned to capitalize on macro upside Our profitable growth strategy is entirely self- funded We retain optionality for excess capital to enhance ROIC and growth I N V ES T OR DA Y 2 0 2 4
Slide 158: Reconciliation from Net Income to Adjusted EBITDA
Reconciliation from Net Income to Adjusted EBITDA (in thousands) FY25 TTM(1) FY19 1) Trailing Twelve Months (TTM) includes FY24 Q4 and FY25 Q1-Q3. 2) Represents professional fees related to the restatement of Net Income $ 7,201 $ (6,704) previously issued financial statements. (+) Interest expense (
Slide 159: Investor Day 2024
I N V ES T OR DA Y 2 0 2 4