The Lovesac Company · NASDAQ:LOVE
The Lovesac — Q4 2025 Earnings Presentation
32 slides from The Lovesac's earnings presentation, Apr 10, 2025
Slide 1: Investor Presentation FY24
Investor Presentation FY24
Slide 2: Safe Harbor Statement
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,” “anticipate,” “could,” “sho
Slide 3: Key Business Highlights
Key Business Highlights Proven omni-channel advantage with strong Mid-luxury positioning target customer is 25 to 45 ecommerce performance, highly productive year-old “young parent want-it-alls” with our key showrooms, and strong channel partnerships customer between 35 to 39 years old Home furnitur
Slide 4: LOVE's Unique Product Philosophy: Designed For Life
LOVE’s Unique Product Philosophy: Designed For Life Changeable Maintainable Moveable Rearrangeable Upgradable Waste-less We intend to become one of the biggest, the most innovative, and the most beloved furniture brands in the world. 4
Slide 5: Lovesac at a Glance
Lovesac at a Glance FY2024 Key Financial Metrics NET SALES NET SALES GROWTH $700.3 million 7.5% (91% of Net Sales = Sactionals) (5 YEAR CAGR of 33.4%) GROSS PROFIT GROSS MARGIN $401.0 million 57.3% ADJ. EBITDA BALANCE SHEET $54.0 million $87.0 million cash and cash equivalents GEOGRAPHIC PRESENCE RE
Slide 6: Significant growth in Net sales as product offerings and retail footprint expands
Significant growth in Net sales as product offerings and retail footprint expands Net Sales Y/Y Growth $ in Millions $700.3 In FY24: +7.5% • New customers +13.3% $651.2 • Showroom net sales +9.8% +30.7% • Internet net sales +13.2% • Total Omni-channel comparable net sales -4.1% $498.2 +55.3% FY22 FY
Slide 7: Touchpoints: FY 2024 Operations Update
FY 2024 Operations Update Touchpoints • In FY24, opened 35 • Hosted online pop- • Opened 22 Best Buy net locations (46 up-shops on shop-in-shops openings and 11 Costco.com and 424 bringing total count to closures) physical pop-up 44 locations roadshows • Targeting to open 30 • In FY25, will continue
Slide 8: LOVESAC's Senior Executive Management Team
LOVESAC’s Senior Executive Management Team Shawn Nelson Mary Fox Keith Siegner Todd Duran John Legg Carly Kawaja Founder & CEO President & COO EVP & CFO CIO Chief Supply Chief People Officer 25+ Years at Lovesac Chain Officer 4
Slide 9: Disruptive Model
Disruptive Model
Slide 10: Disrupting a Stale Category
Disrupting a Stale Category Traditional Model Long lead time, inventory & personnel heavy delivery Direct to consumer with ability to ship next day Low excitement and mundane products Patented, inventive, Designed For Life products Non-engaged commodity shoppers Highly engaged brand advocates Numero
Slide 11: Massive, Untapped Addressable Market
Massive, Untapped Addressable Market Furniture expenditures are expected to grow 4.96% per year through 2025 from $148.4 billion to $189 billion and the home audio segment is expected to reach $4.9 billion by 2025. Lovesac captures a small portion of this $46+ billion, representing a greenfield of o
Slide 12: Our Innovative Product Portfolio Continues to Expand
Our Innovative Product Portfolio Continues to Expand Sacs Sactionals Accessories 1.6% FY 2024 Net Sales Custom Covers & Footsac Blanket Drink Holder Seat Table Decorative Pillows 12
Slide 13: Sactionals Overview
Sactionals Overview Next-gen premium modular couch with two simple pieces – seats and sides Patented modular system makes it easy to assemble & change over time Enables endless permutations of a sectional couch ~200 customizable, machine washable removable covers that FY24 Net fit like upholstery Sa
Slide 14: Sactionals is a Platform, Not a Product
Sactionals is a Platform, Not a Product Comfort Decor Function/Upgrade Drink Holder Seat Table Custom Covers & Dec Pillows Sactionals StealthTech® Sound + Charge Footsac Blanket Coaster & Couch Bowl Roll Arm Power Hub 44% of Lovesac transactions are from repeat customers¹ 1 We define a customer as n
Slide 15: Beautiful, Changeable, Washable & Comfortable
Beautiful, Changeable, Washable & Comfortable • 30 quick-ship covers constitute more • Fabrics manufactured for wash • Hardwood frames + sinuous springs enable than 94% of all covers sales1 • Fabrics engineered & tested for proper sit • ~200 custom covers offer broad choice durability • 2 cushion-ty
Slide 16: StealthTech is an Ingredient Brand that Enhances Without Impacting Style
StealthTech is an Ingredient Brand that Enhances Without Impacting Style LOVESAC STEALTHTECH • StealthTech is an ingredient brand under the Lovesac trademark • Enhances user experience of Lovesac products by embedding premium technology that addresses key consumer use cases for activities on or arou
Slide 17: StealthTech comes w/ core bundle and can be augmented for any configuration
StealthTech comes w/ core bundle and can be augmented for any configuration 6 Speaker Immersive Sound + Charge System Add-On Enhancement Satellite Sound Side Retail Price: $3,700 Retail Price: $500 *Pricing includes cost of the Side inserts. Net increase Up to 4 Satellite Sound Sides can be purchase
Slide 18: Sacs Overview
Sacs Overview 7.4% • Category leader in oversized beanbags • Durafoam® filling • Product line offers 5 different sizes ranging from FY 2024 • Sacs shrink to 1/8 original volume for shipping 25lbs to 95lbs Net Sales • Multiple shapes, sizes with washable, changeable covers • Capacity to seat 3+ peopl
Slide 19: Balanced Omni-Channel Strategy
Balanced Omni- Channel Strategy
Slide 20: Balanced Omni-Channel Strategy
Balanced Omni-Channel Strategy Diversifying Net Sales Channel Mix 45.6% 60.0% 61.2% 62.5% 7.3% 9.8% 11.7% 9.0% FY 20211 FY 2022 FY 2023 FY 2024 30.2% 27.1% 47.1% 28.5% Showrooms Internet Other Showrooms and Touchpoints Internet Other • Small-footprint retail locations in high- • eCommerce channel dr
Slide 21: Superior Customer Experience: In Showrooms & Online
Superior Customer Experience: In Showrooms & Online Easy to Purchase • Mobile purchases are easy • In-showroom checkout via iPad technology—never leave the couch • 40% of sales through in-house financing facilitated by a leading third-party consumer financing company1 Easy to Ship • Can be delivered
Slide 22: Immersive Experience
Immersive Experience See It Touch It Buy It Physical retail locations and Social Media Showrooms / Shop-in-shops Lovesac.com / BestBuy.com / other direct / Kiosks / Costco pop-ups Costco.com online pop-ups marketing Social Media efforts drive conversion Advertising Mobile Concierge Showrooms / Best
Slide 23: Return on Advertising Spend is High and Ready to Grow
Return on Advertising Spend is High and Ready to Grow + (Eventual) International Additional Showrooms New Product Innovation Partner Expansion Expansion Our investments in national advertising are increasingly amplified by the above Initiatives, driving ROI’s up Awareness* Marketing Conversion Marke
Slide 24: "Designed for Life" Platform
“Designed for Life” Platform
Slide 25: "Designed For Life" Driven By Sustainable Inputs
“Designed For Life” Driven By Sustainable Inputs 966 Plastic Bottles Lovesac has repurposed more than +160 million plastic bottles to make Sactionals* Since using REPREVE® 160M+ plastic bottles diverted from landfills. Through our partnership with REPREVE®, we make the base liner fabric of every Sac
Slide 26: Evolution of Lovesac into a Circular Economy Business
Evolution of Lovesac into a Circular Economy Business Eliminates Looped Waste Sustainability Revolutionary CTC Commitment to “Circle to Consumer” Circle to Consumer Sustainability Business Model Modular products built Delivers high-value products to last a lifetime and evolve to consumers, leveragin
Slide 27: ESG Initiatives
ESG Initiatives FY23 ESG Report 0 waste, 0 emissions by 2040 Published E We intend to demonstrate our sustainable commitments through measurable actions. This is why we’ve developed a Zero Emissions and Zero Waste roadmap to guide us to our goals. Our planetary impact is integral to our highest Love
Slide 28: Strategic Priorities
Strategic Priorities
Slide 29: FY 2024 Operational Accomplishments
FY 2024 Operational Accomplishments • Opened 46 showrooms and closed 11 showrooms in FY24 for a net opening of 35 new showrooms • Opened a total of 22 new Best Buy shop-in-shops in addition to online pop-up-shops with Costco • Continued to gain share with StealthTech Sound + Charge product in partne
Slide 30: Our FY 2025 Strategic Priorities
Our FY 2025 Strategic Priorities Product Marketing Omni-channel Supply Chain/ Sustainability Distribution Infrastructure • New product launches • Drive growth spending • Continue partnership • Leverage diversified • Designed For Life ethos • Continue to increase ~13% of net sales on with Best Buy an
Slide 31: Infrastructure: Built For Scale & Efficiency
Infrastructure: Built For Scale & Efficiency Large format motion screens and interactive touchpads to Showroom Technology enhance CX Data Warehouse & CRM Scalable foundation for ERP and CRM Concentrated inventory without shelf-life, at high carry to Logistics Optimization facilitate growth and flex
Slide 32: Summary
Summary • Large Addressable Market: Significant opportunity to disrupt a huge, and transitioning home furnishing market • Expanding Portfolio of Unique, Sustainable, Patent Differentiated Product: Products are shippable, durable, washable and easily changeable with a focus on sustainability, given o