The Lovesac Company · NASDAQ:LOVE

The Lovesac — Lovesac — Investor Day (December 2024)

159 slides from The Lovesac's investor day presentation, Dec 17, 2024

  1. Slide 1: Investor Day December 17, 2024

    I N V ES T OR DA Y 2 0 2 4 Investor Day December 17, 2024 H ®

  2. Slide 2: Safe Harbor Statement

    I N V ES T OR DA Y 2 0 2 4 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements can be identified by words such as “may,” “continue(s),” “believe,”

  3. Slide 3: Key CEO Takeaways through today

    I N V ES T OR DA Y 2 0 2 4 Key CEO Takeaways through today Lovesac has a track record of profitable growth regardless of macro or category conditions 2 superpowers driving huge market share gains: Designed For Life Products + Customer Acquisition Engines Massive TAM and household penetration opportu

  4. Slide 4: Key CEO Takeaways looking forward

    I N V ES T OR DA Y 2 0 2 4 We are prudently investing in our brand and capabilities to build the most loved brand in America 2 more dominant Designed For Life Platforms to launch in FY27 and FY28 – development long underway Our pace of innovation is increasing...FY25 was our biggest year of innovati

  5. Slide 5: Key COO Takeaways: Customer Acquisition Engines

    I N V ES T OR DA Y 2 0 2 4 Our model is profitable immediately and builds over time as customers invest in our platforms Our Customer Acquisition Engines simplify highly complex products for efficient conversion We marry digital, physical and partner models to meet the customer where they are in the

  6. Slide 6: Key COO Takeaways: Growth Enablers

    I N V ES T OR DA Y 2 0 2 4 Our capital-light Supply Chain model unlocks speed and agility to catalyze profitable growth at scale We have assembled a world-class leadership team to lead and scale our next chapter of growth We have fortified our Insights and Innovation teams to support rapid platform

  7. Slide 7: Key CFO Takeaways

    I N V ES T OR DA Y 2 0 2 4 Key CFO Takeaways We have massive secular growth potential 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

  8. Slide 8: Lovesac at a Glance

    I N V ES T OR DA Y 2 0 2 4 at a Glance TTM(1) as of Q3 FY25 Key Financial Metrics NET SALES $689.6 million NET SALES GROWTH 0.2% GROSS MARGIN 58.2% GROSS PROFIT $401.7 million ADJ. EBITDA $42.3 million BALANCE SHEET $61.7 million cash and cash equivalents (91.4% of Net Sales = Sactionals) GEOGRAPHIC

  9. Slide 9: Shawn Nelson, Founder & Chief Executive Officer

    I N V ES T OR DA Y 2 0 2 4 Shawn Nelson Founder & Chief Executive Officer

  10. Slide 10: Designed For Life since 1998

    I N V ES T OR DA Y 2 0 2 4 Designed For Life since 1998

  11. Slide 11: 25+ years of category-disrupting growth

    I N V ES T OR DA Y 2 0 2 4 25+ years of category-disrupting growth and just getting started Chapter 1 1998-2006 Chapter 2 2007-2014 Chapter 3 2014-2022 Chapter 4 2022-onward Sac Brand $0-$6M $6-$60M $60-$650M $650-$Bs Specialty Retailer DTC Couch Brand Home + Tech Lifestyle Brand

  12. Slide 12: 1998

    I N V ES T OR DA Y 2 0 2 4 1998

  13. Slide 13: 2002

    I N V ES T OR DA Y 2 0 2 4 2002

  14. Slide 14: 2006

    I N V ES T OR DA Y 2 0 2 4 2006

  15. Slide 15: 2010

    I N V ES T OR DA Y 2 0 2 4 2010

  16. Slide 16: 2016

    I N V ES T OR DA Y 2 0 2 4 2016

  17. Slide 17: ay! amazon

    ay! amazon —7 Om +0.71% Ss ~0.16 $1,703.18 +1208 SAC LOVESAC UNCH UNCH 3.00 0.00 $16.00 / CHANGE 0.00 INVESTOR DAY Wb. PRICE $18.00 / CHANGE 0, etftettte cisco +0.61% $42.81 +0.28 LOVESAC UNCH LOVESAC UNCH PRICE $16.00 / CHANGE 0.00 LOVESAC allasull —) +0.72% E $1,703.33 / CHANGE LOVESAC UNCH PRICE

  18. Slide 18: Growth on Growth

    I N V ES T OR DA Y 2 0 2 4 Growth on Growth FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 TTM* 39% 23% 26% 23% 3% 33% 63% 41% 37% 55% 31% 7.5% 0.2% +31% CAGR since FY18 Net Sales and Y/Y Growth * Trailing Twelve Months (TTM) includes FY24 Q4 and FY25 Q1-Q3.

  19. Slide 19: I N V ES T OR DA Y 2 0 2 4

    I N V ES T OR DA Y 2 0 2 4

  20. Slide 20: Sactionals

    Sactionals.... LOVESAC =. LOVESAC

  21. Slide 21: Sactionals

    Sactionals.... LOVESAC z = fi a E- ote i INVESTOR DAP 2924 Pid LOVESAC

  22. Slide 22: Delivery in Days

    I N V ES T OR DA Y 2 0 2 4 Delivery in Days

  23. Slide 23: Washable

    Washable INVESTOR DAY 2024 LOVESAC

  24. Slide 24: Maintainable

    I N V ES T OR DA Y 2 0 2 4 Maintainable

  25. Slide 25: Designed For Life Driven By Sustainable Inputs

    I N V ES T OR DA Y 2 0 2 4 “Designed For Life” Driven By Sustainable Inputs 82 3 1 Plastic Plastic Bottles Bottles 966 Plastic Bottles 82 Plastic Bottles 31 Plastic Bottles From April 2018 to today, Lovesac repurposed more than 300 million plastic water bottles to make Sactionals

  26. Slide 26: Movable

    I N V ES T OR DA Y 2 0 2 4 Movable

  27. Slide 27: Accessorizable

    I N V ES T OR DA Y 2 0 2 4 Accessorizable

  28. Slide 28: Upgradable

    I N V ES T OR DA Y 2 0 2 4 Upgradable

  29. Slide 29: StealthTech

    I N V ES T OR DA Y 2 0 2 4 StealthTech

  30. Slide 30: ChargeSide

    I N V ES T OR DA Y 2 0 2 4 ChargeSide

  31. Slide 31: Sacs

    § SACS” INVESTOR DAY 202%” Vii \ ‘ LOVESAC

  32. Slide 32: Comfortable

    I N V ES T OR DA Y 2 0 2 4 Comfortable

  33. Slide 33: Lovable

    I N V ES T OR DA Y 2 0 2 4 Lovable

  34. Slide 34: Where are we today?

    I N V ES T OR DA Y 2 0 2 4 Where are we today?

  35. Slide 35: World Class Operators

    I N V ES T OR DA Y 2 0 2 4 World Class Operators Shawn Nelson Founder & CEO Keith Siegner EVP & CFO Mary Fox President & COO Todd Duran CIO John Legg Chief Supply Chain Officer Carly Kawaja Chief People Officer Sam Martin SVP, Strategy & Growth A strong track record of scaling brands globally Experi

  36. Slide 36: Years of growth and we are just getting started

    I N V ES T OR DA Y 2 0 2 4 25 years of growth…and we are just getting started Chapter 1 1998-2006: Sac Startup $0M to $6M Chapter 2 2006-2014: Specialty Retailer $6M to $60M Chapter 3 2014-2022: DTC Couch Brand $60M to $650M Chapter 4 2022 onward: Lifestyle Brand (Home + Tech ) $650M to $1.5B+ ~20%

  37. Slide 37: Lovesac Can Be Tough to Define

    I N V ES T OR DA Y 2 0 2 4 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

  38. Slide 38: Defined

    I N V ES T OR DA Y 2 0 2 4 Defined… … A Data-Driven Innovator Our customer obsession and deep insights drive innovation 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

  39. Slide 39: Stated Mission: Most loved brand in America

    I N V ES T OR DA Y 2 0 2 4 Stated Mission: To become the most loved brand in America

  40. Slide 40: Brand as an Oak Tree metaphor

    I N V ES T OR DA Y 2 0 2 4 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 and a business that does the same.

  41. Slide 41: Brand tree: Sacs and Sactionals

    I N V ES T OR DA Y 2 0 2 4 SACTIONALS SACS 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 t

  42. Slide 42: Customer Acquisition Engine and Sactionals Platform

    I N V ES T OR DA Y 2 0 2 4 Investor Day 2024 CUSTOMER ACQUISITION ENGINE Brand & Performance Marketing Showroom Experience Partner Demonstrations Digital Configuration Customer Relationships Drink Holders Custom Covers Deep Side Roll Arm Designer Collabs StealthTech Angled Side Tray & Coaster Charge

  43. Slide 43: Our Superpowers

    I N V ES T OR DA Y 2 0 2 4 Our 2 Superpowers A High-Growth Capital-Light Profitable Business Model (and brand) Designed For Life TM PRODUCTS CUSTOMER ACQUISITION ENGINES

  44. Slide 44: Designed For Life: Built to Last, Designed to Evolve

    I N V ES T OR DA Y 2 0 2 4 If you don’t love it, you won’t keep it. Viscerally pleasing design is a hallmark of the DFL approach. Fads, trends, or limited editions are incorporated in transient and changeable elements only, shaping a core product line that is reliable, endearing, and timeless. Built

  45. Slide 45: Designed For Life is not just a marketing slogan

    I N V ES T OR DA Y 2 0 2 4 Designed For Life is not just a marketing slogan Source: Sactionals Owners Research, 2024 Sactionals Usage 68% 62% 29% 28% 19% 13% 7% 3% 15% Rearranged your Sactionals Washed covers Changed to deep or standard seating Added seats Removed seats Changed the covers/fabric typ

  46. Slide 46: Best-selling couch in America

    I N V ES T OR DA Y 2 0 2 4 Designed For Life Value Prop makes Sactionals the best-selling couch in America (as far as we can tell)

  47. Slide 47: Stated Purpose: Buy Better to Buy Less

    I N V ES T OR DA Y 2 0 2 4 Stated Purpose: To Inspire Humankind to Buy Better to Buy Less

  48. Slide 48: Customer Acquisition Engines

    I N V ES T OR DA Y 2 0 2 4 Media, activations, PR, influencers, social, SEO, test-and-learn1. Brand & Performance Marketing Complex products made simple online; Transact on customer's terms2. Digital Configuration Complex products made simple in-person; Transact on customer's terms3. Showroom Experi

  49. Slide 49: Superpower #2: Customer Acquisition Engines

    I N V ES T OR DA Y 2 0 2 4 Brand & Performance Marketing Digital Configuration Showroom Experiences Partner Demonstrations Customer Relationships Superpower #2: Customer Acquisition Engines Lovesac LTV:CAC of 3.5, and reaches 174% of initial LTV by Year 5 Website conversion rate +30%, digital CSAT +

  50. Slide 50: Repeat and referral flywheel

    I N V ES T OR DA Y 2 0 2 4 Our 2 superpowers create a repeat and referral flywheel

  51. Slide 51: Repeat and referral flywheel metrics

    I N V ES T OR DA Y 2 0 2 4 Our 2 superpowers create a repeat and referral flywheel 44% Repeat Transactions FY24 Sactionals Transactions 34% Awareness from Word of Mouth Source of Awareness Source: Lovesac Quarterly CSAT Survey, Q3 2024 Source: Sactionals Owners Research, 2024

  52. Slide 52: Cultivating the Next Generation of Customers

    I N V ES T OR DA Y 2 0 2 4 Heidi Klum Travis Barker & Kourtney Kardashian Wiz KhalifaLizzo Belly Ashley IaconettiDov Cameron Soulja Boy Jax Taylor & Brittany Cartwright Ariana Grande Lil’ Jon GronkTony Hawk Gretchen RossiDamar Hamlin Devonta Smith D’Amelio FamilyLogan Paul Sarah Hyland Cultivating t

  53. Slide 53: Key CEO Takeaways through today

    I N V ES T OR DA Y 2 0 2 4 Key CEO Takeaways through today Lovesac has a track record of profitable growth regardless of macro or category conditions 2 superpowers driving huge market share gains: Designed For Life Products + Customer Acquisition Engines Massive TAM and household penetration opportu

  54. Slide 54: Our Strategic Outlook

    I N V ES T OR DA Y 2 0 2 4 Our Strategic Outlook

  55. Slide 55: Tough Macro-economic Backdrop

    I N V ES T OR DA Y 2 0 2 4 Tough Macro-economic Backdrop * 2024 projected Source: Redfin; Bankrate; National Association of Realtors; Statista 4.1% 3.4% 3.2% 5.5% 7.0% 6.9% 2019 2020 2021 2022 2023 2024 Existing Home Sales (in M Units) 30 Year Fixed Mortgage Rate 7.08 4.12 6.12 4.09 4.62 20 05 20 06

  56. Slide 56: Volatile U.S. furniture retail sales

    I N V ES T OR DA Y 2 0 2 4 Source: Federal Reserve Economic Data for Furniture and Home Furnishings Stores, Not Seasonally Adjusted MRTSSM442USN from 2007-2019. Bank of America Credit Card for Furniture Data from 2020- 2024. 2007-2009 2010-2019 2020-2021 2022 2023 2024 Great Financial Crisis ~(12%)

  57. Slide 57: Lovesac outperforms the category and competitors

    I N V ES T OR DA Y 2 0 2 4 -10% 0.2% -3% -5% -3% 1% -1%-4% 196% 149% 28% 22% 17% -16% Lovesac outperforms the category and competitors Consistent share gains in the Home category ahead of key competitors CATEGORY(3) vs. FY20 vs. FY24 (1) FY25 TTM is the Trailing Twelve Months (FY24 Q4, FY25 Q1-Q3).

  58. Slide 58: Sustained share gains against tailwinds and headwinds

    I N V ES T OR DA Y 2 0 2 4 We've driven sustained share gains against both tailwinds and headwinds 3.0% 3.8% 4.6% 5.1% 6.4% 7.2% 2006-18 FY20 FY21 FY22 FY23 FY24 FY25E +4.2pts +1.6 share points during historic tailwinds +2.6 share points during historic headwinds Lovesac Share of Sectionals + Audio

  59. Slide 59: Less than 1% household penetration

    I N V ES T OR DA Y 2 0 2 4 Yet we are barely scratching the surface of the opportunity ahead – less than 1% Household Penetration 38,423 42,550 42,732 51,858 64,686 79,252 105,336 120,351 133,941 155,623 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 New Customer Count 1.1M cumulative Household P

  60. Slide 60: Prior view of our TAM

    I N V ES T OR DA Y 2 0 2 4 For years we have shared this view of our TAM… $148.4 billion in furniture expenditures $38.6 billion $41.7 billion Lovesac Market Share, 1.5% Competing in the home audio industry increases opportunity $46.2 billion 2024 Couch + Home Audio Market 2024 Couch, Seating & Chai

  61. Slide 61: Refined view of our TAM

    I N V ES T OR DA Y 2 0 2 4 …but we've refined our view of our TAM $9.5B $46.2B $152.9B Entrench our leadership in Sectionals + Audio ❑ Continue to innovate against the Sactionals & Sacs Platforms ❑ Connect through Tech ❑ Significant opportunity with repeat and new customer acquisition Launch new pla

  62. Slide 62: Our Territory

    I N V ES T OR DA Y 2 0 2 4 Our Territory

  63. Slide 63: Our Blue Ocean

    I N V ES T OR DA Y 2 0 2 4 Our Blue Ocean Home $148B Services $120B Tech $120B

  64. Slide 64: Our Customer Focus

    I N V ES T OR DA Y 2 0 2 4 Our Customer Focus Premium Pragmatists Stylish Sophisticates Engaged comfort seating consumers that are willing to pay a premium for comfort seating that they deem to provide value- added benefits (e.g., functionality, durability, comfort, modularity). Engaged comfort seat

  65. Slide 65: Our Customer Today

    I N V ES T OR DA Y 2 0 2 4 Our Customer Today: higher income & concentrated in age 34% 41% 54% 82%Household Income > $100k US Population Lovesac Buyers Aged 35-54 US Population Lovesac Buyers Source: Lovesac Seating Demand Landscape, 2024

  66. Slide 66: Penetrate 3M homes

    I N V ES T OR DA Y 2 0 2 4 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

  67. Slide 67: Expansion: New Designed for Life Platforms

    I N V ES T OR DA Y 2 0 2 4 Expansion: New Designed for Life Platforms

  68. Slide 68: Building Sacs and Sactionals and 3 new branches

    I N V ES T OR DA Y 2 0 2 4 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 infrastructure we’ve built to drive profitabl

  69. Slide 69: First two decades focused on two DFL Product Platforms

    I N V ES T OR DA Y 2 0 2 4 Our first two decades were firmly focused on two DFL Product Platforms Establishing the World’s Most Comfortable Seat® Establishing the World’s Most Adaptable Couch® Sectional + Audio Market Lovesac Market Share$9.5B 7% Source: Lovesac Seating Demand Landscape, 2024 Source

  70. Slide 70: Enhancing the platforms

    I N V ES T OR DA Y 2 0 2 4 The past 5 years have focused on enhancing these 2 platforms FY20 FY21 FY22 FY23 FY24 SACTIONALS SACS

  71. Slide 71: FY2025 Most Prolific Year for Product Launches

    I N V ES T OR DA Y 2 0 2 4 FY 2025 Has Been Our Most Prolific Year for Product Launches Ever

  72. Slide 72: Our Pace of Innovation is Increasing

    I N V ES T OR DA Y 2 0 2 4 Our Pace of Innovation is Increasing Custom Fabric Revitalization Surface Product Optimization AnyTableInsert Protectors Just a few of the introductions this year

  73. Slide 73: The Pillowsac Accent Chair

    I N V ES T OR DA Y 2 0 2 4 The Pillowsac Accent Chair 50% repeat customers sold out within first month

  74. Slide 74: Sacs Energy Drivers: Collabs and Seasonal Collections

    I N V ES T OR DA Y 2 0 2 4 Sacs Energy Drivers: Collabs and Seasonal Collections

  75. Slide 75: Our Blue Ocean

    I N V ES T OR DA Y 2 0 2 4 Our Blue Ocean Home $148B Services $120B Tech $120B

  76. Slide 76: StealthTech will Connect Current & New Platforms

    I N V ES T OR DA Y 2 0 2 4 StealthTech will Connect Current & New Platforms Dolby Digital 5.1 surround sound by harman/kardon and convenient wireless charging all seamlessly embedded inside the endlessly adaptable Sactionals platform. AN UNPARALLELLED, IMMERSIVE SURROUND SOUND EXPERIENCE

  77. Slide 77: The World's Most Innovative Recliner

    I N V ES T OR DA Y 2 0 2 4 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 Source: Mintel Group

  78. Slide 78: Years of Engineering & Design

    I N V ES T OR DA Y 2 0 2 4 2 Years of Engineering & Design

  79. Slide 79: Reverse-Compatible, Reconfigurable Recliner

    I N V ES T OR DA Y 2 0 2 4 First of its Kind Reverse- Compatible, Reconfigurable Recliner

  80. Slide 80: Reverse-Compatible, Reconfigurable Recliner

    I N V ES T OR DA Y 2 0 2 4 First of its Kind Reverse- Compatible, Reconfigurable Recliner

  81. Slide 81: INVESTOR DAY 2024 LOVESAC

    INVESTOR DAY 2024 LOVESAC

  82. Slide 82: INVESTOR DAY 2024 LOVESAC

    INVESTOR DAY 2024 LOVESAC

  83. Slide 83: Our Blue Ocean

    I N V ES T OR DA Y 2 0 2 4 Our Blue Ocean Home $148B Services $120B Tech $120B

  84. Slide 84: Services Will Cultivate Long-Term Customer Relationships

    I N V ES T OR DA Y 2 0 2 4 Services Will Cultivate Long-Term Customer Relationships FY25 FY26 FY28FY27Piloting Customer-Facing Expansion Scaled Growth Trade-In Delivering customers a lifetime of flexibility by enabling trade-in of owned pieces for credit to upgrade and add-on to their platforms Resa

  85. Slide 85: FY2025 Our Biggest Year of Innovation Yet

    I N V ES T OR DA Y 2 0 2 4 FY 2025 Our Biggest Year of Innovation Yet

  86. Slide 86: Sactionals and Sacs

    I N V ES T OR DA Y 2 0 2 4 SACTIONALS SACS

  87. 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

  88. Slide 88: StealthTech & Services

    I N V ES T OR DA Y 2 0 2 4 STEALTHTECH & SERVICES StealthTech and Services will connect all of the branches (platforms and rooms) creating a powerful whole home ecosystem that drives brand love.

  89. Slide 89: DFL Platforms to Launch Over the Next 3 Years

    I N V ES T OR DA Y 2 0 2 4 3 Sactionals-Sized DFL Platforms to Launch Over the Next 3 Years FY25 FY26 FY27 FY28 $$$,$$$,$$$ New Segment 1 $$$,$$$,$$$ New Room STEALTHTECH 2.0 To Be Announced Reclining Seat Full Launch Seasonal Throw Pillow StealthTech Charge Side Anytable Surface Product Refinement

  90. Slide 90: New Platform 1: huge TAM with minimal cannibalization

    I N V ES T OR DA Y 2 0 2 4 Similarly fragmented market to sectionals with a large TAM Customer value prop differs from what Sactionals delivers in both benefits and price expectations Minimal cannibalization risk – 0.1% share today of the 1/2/3 seat market New Platform 1: a huge TAM opportunity with

  91. Slide 91: Younger and Older Customer Opportunity

    I N V ES T OR DA Y 2 0 2 4 Younger and Older Customer Opportunity Under $100k Income Customer Opportunity 34% 41% 54% 82% The Customer Opportunity: widening the aperture on our portfolio to attract new customers and need states Opens aperture to under $100k HHI, younger home establishers, renters, s

  92. Slide 92: Sactionals, Sacs, EverCouch

    I N V ES T OR DA Y 2 0 2 4 SACTIONALS SACS EVERCOUCH

  93. Slide 93: EverCouch by Lovesac

    I N V ES T OR DA Y 2 0 2 4 EverCouch by Lovesac, NEW mid-year FY26

  94. Slide 94: EverCouch: a Simple DFL Sofa Solution

    I N V ES T OR DA Y 2 0 2 4 EverCouch: a Simple 1, 2, 3 Seat DFL Sofa Solution SOFA CUSHION OPTIONS Loveseat Cushion Options ARM STYLESPRODUCT FAMILY Seating Options Track Swept Tapered

  95. Slide 95: INVESTOR DAY 2024 LOVESAC

    INVESTOR DAY 2024 LOVESAC

  96. Slide 96: INVESTOR DAY 2024 LOVESAC

    INVESTOR DAY 2024 LOVESAC

  97. Slide 97: INVESTOR DAY 2024 LOVESAC

    INVESTOR DAY 2024 LOVESAC

  98. Slide 98: EverCouch Reveal

    I N V ES T OR DA Y 2 0 2 4 EverCouch Reveal MULTIPLE ARM STYLES REPREVE INSERT LINER INTERIOR FRAME CUSHION & BACK PILLOW BRAND PRINT INSIDE BEAM CONNECTION METHOD CIRCULUAR FEET Cover OptionsComponents

  99. Slide 99: Significantly differentiated from the competition

    I N V ES T OR DA Y 2 0 2 4 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 Hid

  100. Slide 100: Differentiated from Sactionals

    I N V ES T OR DA Y 2 0 2 4 …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 Upgradeable Components ✓ P

  101. Slide 101: EverCouch Customer Acquisition Engine

    I N V ES T OR DA Y 2 0 2 4 Investor Day 2024 EVERCOUCH CUSTOMER ACQUISITION ENGINE Brand & Performance Marketing Digital Configuration Showroom Experiences Partner Demonstrations Customer Relationships Built to Last Designed to Evolve Platform Extensions… Like everything Lovesac does, EverCouch will

  102. Slide 102: Customer Acquisition Engines Tailored to Each Platform

    I N V ES T OR DA Y 2 0 2 4 Digital Configuration Showroom Experiences Partner Demonstrations Customer Relationships Customer Acquisition Engines Tailored to Each Platform NEW PRODUCT PLATFORMS FY27 NEW PRODUCT PLATFORMS FY28 SACTIONALS SACS EVERCOUCH Brand & Performance Marketing NEW ROOM NEW ROOM

  103. Slide 103: Two new rooms of the home

    I N V ES T OR DA Y 2 0 2 4 SACTIONALS SACS EVER COUCH NEW ROOM FY27 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…

  104. Slide 104: Connected by StealthTech and Services

    I N V ES T OR DA Y 2 0 2 4 STEALTHTECH & SERVICES SACTIONALS SACS EVERCOUCH NEW ROOM FY27 NEW ROOM FY28 …all connected by StealthTech and Services

  105. Slide 105: Key CEO Takeaways looking forward

    I N V ES T OR DA Y 2 0 2 4 We are prudently investing in our brand and capabilities to build the most loved brand in America 2 more dominant Designed For Life Platforms to launch in FY27 and FY28 – development long underway Our pace of innovation is increasing...FY25 was our biggest year of innovati

  106. 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

  107. Slide 107: Mary Fox and Sam Martin

    I N V ES T OR DA Y 2 0 2 4 Mary Fox President and COO Sam Martin SVP, Strategy & Growth

  108. Slide 108: Customer Acquisition Engines

    I N V ES T OR DA Y 2 0 2 4 Customer Acquisition Engines

  109. Slide 109: Our Superpowers

    I N V ES T OR DA Y 2 0 2 4 Our 2 Superpowers A High-Growth Capital-Light Profitable Business Model (and brand) Designed For Life TM PRODUCTS CUSTOMER ACQUISITION ENGINES

  110. Slide 110: Customer Acquisition Engines

    I N V ES T OR DA Y 2 0 2 4 Media, activations, PR, influencers, social, SEO, test-and-learn1. Brand & Performance Marketing Complex products made simple online; Transact on customer's terms2. Digital Configuration Complex products made simple in-person; Transact on customer's terms3. Showroom Experi

  111. Slide 111: Brand Marketing and Driving Awareness

    I N V ES T OR DA Y 2 0 2 4 1. Brand Marketing and Driving Awareness RESEARCH FAMILIAR CONSIDER AWARE PURCHASE LONG TERM RELATIONSHIPS 63% Aided Brand Awareness +4pts Awareness improvement from LY Pottery Barn: 92% West Elm: 68% RH: 55% Arhaus: 40% 3% Unaided Brand Awareness Pottery Barn: 7% West Elm

  112. Slide 112: Initial purchase drives immediate CAC payback

    I N V ES T OR DA Y 2 0 2 4 Initial purchase drives immediate CAC payback Sactionals Initial Purchase Yr 1 Gross Margin LTV by Cohort GM LTV: $2,275 CAC: $654 3.5x FY24 LTV:CAC Ratio $1,801 $2,017 $2,086 $2,099 $2,275 2020 Cohort 2021 Cohort 2022 Cohort 2023 Cohort 2024 Cohort $3,970 FY24 Initial Pur

  113. Slide 113: Sactionals Post Purchase Interaction

    I N V ES T OR DA Y 2 0 2 4 Sactionals Post Purchase Interaction 87% Post purchase interaction 44% Repeat Transactions FY24 39% 36% 21% 6% Seats/ Sides Covers Tech/A ccesso ries Sacs Sactionals Repeat Additional Products Purchased Our customers stay engaged in the funnel as they seek to live with and

  114. Slide 114: The longer customers own, the more they invest

    I N V ES T OR DA Y 2 0 2 4 …and the longer customers own, the more they invest By Yr 5 LTV is 174% of initial purchase gross margin $1,801 $2,111 $2,261 $2,700 $3,139 Initial Purchase Y2 Y3 Y4 Y5 FY20 Cohort Sactionals Gross Margin LTV

  115. Slide 115: Our Most Engaged Customers are Even More Valuable

    I N V ES T OR DA Y 2 0 2 4 2.5X Starting FY26 Our Most Engaged Customers are Even More Valuable Single Platform Purchaser LTV Multi Platform Purchaser LTV Future Multi Platform Purchaser LTV STEALTHTECH & SERVICES SACTIONALS SACS EVERCOUCH NEW ROOM FY27 NEW ROOM FY28 as they purchase across multiple

  116. Slide 116: Partners, Digital, Physical

    I N V ES T OR DA Y 2 0 2 4 Partners Digital Physical Digital Configuration, Showroom Experiences and Partner Demonstrations to allow the customer to transact on their terms

  117. Slide 117: World Class Digital Configuration

    I N V ES T OR DA Y 2 0 2 4 2. World Class Digital Configuration Dynamic, inspiring, and UGC content that motivates A dynamic showcase of Designed For Life product platforms Unique configurators to personalize core modular SKU's Frictionless physical & digital quote through to post-purchase experienc

  118. Slide 118: Physical Showrooms are Brand Amplifiers

    I N V ES T OR DA Y 2 0 2 4 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. Today Future 400+ 255

  119. Slide 119: I N V ES T OR DA Y 2 0 2 4

    I N V ES T OR DA Y 2 0 2 4

  120. 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

  121. Slide 121: I N V ES T OR DA Y 2 0 2 4

    I N V ES T OR DA Y 2 0 2 4

  122. Slide 122: Our Showrooms are great investments

    I N V ES T OR DA Y 2 0 2 4 Physical: Our Showrooms are great investments on their merits Key focus is delivering simple demos of our complex Designed for Life platforms 1.2 yrs 4-Wall Payback 255 Showrooms in FY25 28% Web lift in new-market post- opening $1.8M Avg 4-Wall Net Sales(1) (1) Showrooms o

  123. Slide 123: Partnership Demonstrations

    I N V ES T OR DA Y 2 0 2 4 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

  124. Slide 124: Customer Relationships: Industry leading CSAT & NPS

    I N V ES T OR DA Y 2 0 2 4 5. Customer Relationships: Industry leading CSAT & NPS... 64.5 NPS Q3 FY25 86.2 CSAT Q3 FY25 2x Ahead of North American retail average +310 bps CSAT improvement from Q3 FY23 Source: Lovesac Quarterly CSAT Survey, Q3 2024 Source: Verint NPS Tracking, Q3 2024

  125. Slide 125: Robust measurement improves the customer experience

    I N V ES T OR DA Y 2 0 2 4 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

  126. Slide 126: The Power of Our Customer Love

    I N V ES T OR DA Y 2 0 2 4 The Power of Our Customer Love: a highly engaged installed base… 47% 33% Future Purchase Intent Definitely will Probably will 80% 53% 36% Brand Affinity Love them Like them 89% Source: Lovesac Quarterly CSAT Survey, Q3 2024

  127. Slide 127: Customers become our most effective marketers

    I N V ES T OR DA Y 2 0 2 4 …that become our most effective marketers 58% 42% 1% Share my opinion unsolicited Share opinion if prompted I would keep my opinion to myself New Customer Source of Awareness 31% 35% 34% Word of Mouth Media Brand Advocacy All Other Source: Lovesac Quarterly CSAT Survey, Q3

  128. Slide 128: Purchasers did not consider any other retailer

    I N V ES T OR DA Y 2 0 2 4 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 Source: Lovesac Quarterly CSAT Survey, Q3 2024

  129. Slide 129: Customer testimonials

    I N V ES T OR DA Y 2 0 2 4 “I have had my Sactional for a little over 3 years now and just upgraded it with the StealthTech. It's truly amazing, the sound quality is better than expected and has made watching movies next level! I couldn't be happier with my Lovesac products and I'm looking forward t

  130. Slide 130: Key COO Takeaways: Customer Acquisition Engines

    I N V ES T OR DA Y 2 0 2 4 Our model is profitable immediately and builds over time as customers invest in our platforms Our Customer Acquisition Engines simplify highly complex products for efficient conversion We marry digital, physical and partner models to meet the customer where they are in the

  131. Slide 131: Our Growth Enablers

    I N V ES T OR DA Y 2 0 2 4 Our Growth Enablers

  132. Slide 132: Insights & Innovation

    I N V ES T OR DA Y 2 0 2 4 Insights & Innovation We deeply research and understand our customer needs which feeds our product development pipeline We use that research to develop new-to-the-world inventions that are built to last and designed to evolve Strengthening these capabilities to significant

  133. Slide 133: Turbocharged innovation

    I N V ES T OR DA Y 2 0 2 4 All that muscle has allowed us to turbocharge our innovation… FY20 FY21 FY22 FY23 FY24 FY25

  134. Slide 134: Feeds the pipeline for years to come

    I N V ES T OR DA Y 2 0 2 4 …and feeds the pipeline for years to come FY25 FY26 FY27 FY28 $$$,$$$,$$$ EverCouch $$$,$$$,$$$ New Room STEALTHTECH 2.0 To Be Announced Reclining Seat Full Launch Seasonal Throw Pillow StealthTech Charge Side Anytable Surface Product Refinement New Platform New Platform N

  135. Slide 135: We have built an Advantaged Supply Chain

    I N V ES T OR DA Y 2 0 2 4 We have built an Advantaged Supply Chain 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 unparalleled reaction to market trends Diversif

  136. Slide 136: Diversified Geographic Spread of Vendor Partners

    I N V ES T OR DA Y 2 0 2 4 Diversified Geographic Spread of Long-Term Vendor Partners FY26+ FY25 19% 49% 22% 8% 1% < 1% FY23 46% 29% 18% 6% <1% 1% ROW

  137. Slide 137: 44% More Efficient container loading

    I N V ES T OR DA Y 2 0 2 4 44% More Efficient Sactionals can fit an average of 65 3-seat couches in a container vs. 45 for competition COMPETITION 65 3-seat couches VS 45 3-seat couches

  138. Slide 138: Supply Chain Transformation for Scaled Growth

    I N V ES T OR DA Y 2 0 2 4 Supply Chain Transformation for Scaled Growth • 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 and carrier models • Efficiencies to da

  139. Slide 139: We deliver in days

    I N V ES T OR DA Y 2 0 2 4 We deliver in days of receiving the order (vs. industry standard weeks) Network Today Network by FY26 1 2 3 4 Gnd Svc Days

  140. Slide 140: Winner Culture

    I N V ES T OR DA Y 2 0 2 4 Winner Culture OUR #1 CORE VALUE TOP AMBITION: We are united in purpose and passionate about our vision as we drive to achieve results that exceed expectations.

  141. Slide 141: Our Winner Culture engagement

    I N V ES T OR DA Y 2 0 2 4 +22pts above North American Retail average Our Winner Culture… 78% Showroom Manager Engagement +10pts above North America Retail average 66% Total Enterprise Engagement

  142. Slide 142: Our Stated Mission and Purpose

    I N V ES T OR DA Y 2 0 2 4 Our Stated Mission: To build the most loved brand in America and triple our household penetration to 3M homes by 2030 …United by Our Stated Purpose: to inspire humankind to buy better to buy less Our Shared KPI’s: Every associate from CEO to the front line is bonused on: 1

  143. Slide 143: Winner Culture delivers best-in-class performance

    I N V ES T OR DA Y 2 0 2 4 The Winner Culture delivers best-in-class performance in market share gains and brand love 64.5 NPS Q3 FY25 2x Ahead of North American retail average 0.2% -10% 196.0% -4% LTM vs. FY20 LTM vs. FY24 Lovesac Category Source: BOA Category Data through Q3 2024

  144. Slide 144: World Class Operators to deliver growth ambitions

    I N V ES T OR DA Y 2 0 2 4 World Class Operators to deliver growth ambitions Shawn Nelson Founder & CEO Keith Siegner EVP & CFO Mary Fox President & COO Todd Duran CIO John Legg Chief Supply Chain Officer Carly Kawaja Chief People Officer Sam Martin SVP, Strategy & Growth A strong track record of sc

  145. Slide 145: Key COO Takeaways: Growth Enablers

    I N V ES T OR DA Y 2 0 2 4 Our capital-light Supply Chain model unlocks speed and agility to catalyze profitable growth at scale We have assembled a world-class leadership team to lead and scale our next chapter of growth We have fortified our Insights and Innovation teams to support rapid platform

  146. Slide 146: Keith Siegner, Chief Financial Officer

    I N V ES T OR DA Y 2 0 2 4 Keith Siegner Chief Financial Officer

  147. Slide 147: Our Financial Outlook

    I N V ES T OR DA Y 2 0 2 4 Our Financial Outlook

  148. Slide 148: Foundation, Opportunity, Runway, Financials

    I N V ES T OR DA Y 2 0 2 4 F o u n d a ti o n An Enviable Opportunity R u n w a y F in a n ci a ls Starting from a Position of Strength Tremendous Opportunity Ahead Multi-Year Algorithm

  149. Slide 149: Our business has grown far in advance of the market

    I N V ES T OR DA Y 2 0 2 4 Our business has grown significantly: far in advance of the market CATEGORY(3) -10% 0.2% -3% -5% -3% 1% -1%-4% 196% 149% 28% 22% 17% -16% FY25 TTM Revenue(1)(2) vs. FY20 vs. FY24 Net Sales ($M) $233.4 $689.6 FY20 FY25 TTM +24% CAGR (1) FY25 TTM is the Trailing Twelve Month

  150. Slide 150: Operational Excellence Drove Higher Gross Margin

    I N V ES T OR DA Y 2 0 2 4 Operational Excellence Drove Higher Gross Margin 54.8% 50.0% 54.5% 54.9% 52.8% 57.3% 58.2% FY19 FY20 FY21 FY22 FY23 FY24 FY25 TTM* * FY25 TTM is the Trailing Twelve Months (FY24 Q4, FY25 Q1-Q3). Gross Margin (%) +340 bps vs FY19

  151. Slide 151: Material Inflection in Profitability

    I N V ES T OR DA Y 2 0 2 4 $3.4 $42.3 FY19 FY25 TTM(1) Material Inflection in Profitability Diluted EPS ($) -$3.28 $0.34 Profitability improved despite investing in people, touchpoints, product, digital, and systems for scalable growth FY19 FY25 TTM(1)9 Adj EBITDA ($M) -$18.4 $28.2 Free Cashflow(2)

  152. Slide 152: Strong Balance Sheet

    I N V ES T OR DA Y 2 0 2 4 Strong Balance Sheet $154,481 $116,625 $113,455 FY23 Q3 FY24 Q3 FY25 Q3 $ Inventory in thousands o Reduction of 27% vs. Q3 FY23 despite new SKUs o High in-stock ratios maintained o Better efficiency o Reduced exposure to spot-rate volatility Inventory $3,832 $37,738 $61,69

  153. Slide 153: Runway: Value Creation Model

    I N V ES T OR DA Y 2 0 2 4 Runway: Value Creation Model Physical o Brand amplifiers o Highly efficient capital usage o Net 30+ Showrooms per Year DFL Products o Existing Platforms • More market share • Product extensions o New Platforms Superpower #1 Designed For Life TM Digital o The heart of the L

  154. Slide 154: Runway: Margin Expansion

    I N V ES T OR DA Y 2 0 2 4 Runway: Margin Expansion Robust scalable foundations set up fixed cost leverage thereby driving margin expansion SG&A o Leverage even without category growth o Macro upside can accelerate margin expansion Gross Margin o 59-60% long-term o No tariff impact considered Advert

  155. Slide 155: Runway: Informed Capital Allocation

    I N V ES T OR DA Y 2 0 2 4 Reinvest in the Business Excess Capital Runway: Informed Capital Allocation o Brand o New product platforms o Digital ecosystem moat o Showroom/Partner expansion • Capex $20-25 mil o Opportunistic share repurchases • $36.6 mil available share repurchase authorization Long

  156. Slide 156: A Powerful Multi-year Algorithm

    I N V ES T OR DA Y 2 0 2 4 A Powerful Multi-year Algorithm (1) No consideration for potential impact of new tariff regime. (2) Assumes tax rate of ~26.5%. Net Sales Secular Out-Performance Implied Category +10% to +15% +10% to +15% 0% GM %(1) Adv & Mkt Adj. EBITDA EPS(2) ~12.5% >25% 59% to 60% +50bp

  157. Slide 157: Key CFO Takeaways

    I N V ES T OR DA Y 2 0 2 4 Key CFO Takeaways We have massive secular growth potential 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

  158. Slide 158: Footnotes and reconciliation notes

    I N V ES T OR DA Y 2 0 2 4 1) Trailing Twelve Months (TTM) includes FY24 Q4 and FY25 Q1-Q3. 2) Represents professional fees related to the restatement of previously issued financial statements. 3) Represents expenses, such as compensation expense and employer taxes related to RSU equity vesting and

  159. Slide 159: I N V ES T OR DA Y 2 0 2 4

    I N V ES T OR DA Y 2 0 2 4

Lovesac — Investor Day (December 2024) on 6ix