Dive Brief:
- Furniture brand Lovesac saw net sales increase by 21.7% year over year to $238.8 million during its fourth quarter, according to a company press release Wednesday. Showroom sales, including kiosks and mobile concierges, increased 20.6%, internet sales increased 26.4% and sales from other channels jumped by 13.6% in part due to 33 new Costco in-store pop-up-shops and 22 Best Buy shop-in-shops.
- Operating income for the company increased from $24.2 million during the same period last year to $38.1 million. Meanwhile, net income decreased from $32.6 million to $27.6 million for the quarter.
- For the full 2023 fiscal year, net sales increased 30.8% to $651.5 million due to growth across all channels and net income decreased from $45.9 million to $28.2 million. Lovesac expects to make $700 million to $740 million in net sales for fiscal 2024.
Dive Insight:
Lovesac’s chief executive attributed the year’s performance to a variety of factors, including its omnichannel efforts.
“Three unique and highly beneficial assets continue to drive this outperformance: our omnichannel business model that engages and motivates customers, our Designed for Life proprietary products that inspire passion and loyalty, and our efficient and profitable operating platform,” Shawn Nelson, CEO at Lovesac, said in a statement. “As we scale, these key differentiators should continue to drive accretive growth with exciting possibilities for Lovesac’s future. Looking ahead to fiscal 2024, we will continue to surgically invest in growth initiatives and focus on strong execution to drive continued profitable growth.”
This was despite macroeconomic pressures impacting the furniture industry, Nelson said during a call with analysts Tuesday.
“As of year-end, our data sources showed the home category overall to be down 16% versus the prior year. In contrast, our full-year sales increased 30.8% indicating meaningful market share gains,” Nelson said.
Additionally, Nelson told analysts that the company is very excited about prospects of international expansion.
“We hold our patents and trademarks all over the world, and we intend to get there. But likely not this year, we are very focused on the opportunity domestically,” Nelson added.
The brand isn’t done with growing its U.S. presence though, with the chief executive saying that growing its market share in the country is still the best use of investment money in the near term.
