Lovesac sees earnings increase
STAMFORD — Furniture retailer Lovesac reported Tuesday sharply rising revenues, along with a loss, in its second quarterly earnings report since its initial public offering earlier this year.
Net sales increased 71 percent year over year, to about $42 million. The total reflected increased marketing, more showrooms and a greater social media presence, company officials said. Its net loss of about $2.5 million compared with a loss of $2.2 million in the same period a year ago.
“We believe that our highly differentiated product and disruptive direct-to-consumer business model are resonating with both new and existing customers alike as we continue to lean into our marketing strategy,” Lovesac founder and CEO Shawn Nelson said in a statement.
After its $59 million IPO in June, the Stamford company paid down the $4.7 million balance on an asset-based loan.
Lovesac officials have said they plan to use the remaining IPO proceeds for other expenses related to going public, opening or remodeling showrooms, marketing investments, product development and working capital.
The company opened five showrooms in the past quarter, ending the period with 77 showrooms in 30 states. Its sole Connecticut outlet is in the Danbury Fair mall.
“We have what I believe is a true omnichannel model: We’re totally agnostic to showrooms or e-commerce,” Nelson said earlier this year. “As long as there is a place where someone can sit, feel and touch our products, our advertising is greatly amplified.”
The company ranked as the fastest-growing furniture company in the U.S. based on 2017 sales, according to industry publication Furniture Today.
Lovesac takes its name from its original product, a foam beanbag chair called the Sac. Nelson built the first Sac in 1995 as an 18-year-old in the basement of his parents’ home in Salt Lake City, Utah.
The firm relocated to Stamford from Salt Lake City in 2006 as it raised private-equity capital in the area. Its main offices are in the downtown Landmark Square complex.
Earlier this year, Lovesac reported employing 211 full-time and 230 part-time employees.
“We’re excited about what we’ll be able to do with the money raised and looking forward to being an unlikely, but anchor consumer brand out of our home in Stamford,” Nelson said.
Company shares closed Tuesday at $23.80, up 8.6 percent from their Monday finish.
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