Lovesac (LOVE) Q3 2026 Earnings Call Transcript

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Thursday, December 11, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Shawn Nelson

• President — Mary Fox

• Chief Financial Officer — Keith Siegner

Shawn Nelson, Chief Executive Officer, Mary Fox, President, and Keith Siegner, Chief Financial Officer.

Shawn Nelson: Before we get started, I would similar to punctual you that immoderate of the accusation discussed volition see forward-looking statements regarding aboriginal events and our aboriginal fiscal performance. These see statements astir our aboriginal expectations, fiscal projections, and our plans and prospects. Actual results whitethorn disagree materially from those acceptable distant successful specified statements. For a treatment of these risks and uncertainties, you should reappraisal the company's filings with the SEC, which includes today's property release. You should not trust connected our forward-looking statements arsenic predictions of aboriginal events.

All forward-looking statements that we marque connected this telephone are based connected assumptions and beliefs arsenic of today, and we undertake nary work to update them but arsenic required by applicable law. Our treatment contiguous volition see non-GAAP fiscal measures, including EBITDA and adjusted EBITDA. These non-GAAP measures should beryllium considered successful summation to and not arsenic a substitute for oregon successful isolation from our GAAP results. A reconciliation of the astir straight comparable GAAP fiscal measurement to specified non-GAAP fiscal measurement has been provided arsenic supplemental fiscal accusation successful our property release. Now I would similar to crook the telephone implicit to Shawn Nelson, Chief Executive Officer of The Lovesac Company. Shawn?

Shawn Nelson: Good morning, everyone, and convey you for joining us. I'll commencement by sharing a high-level overview of our third-quarter results, supply an update connected our Design for Life merchandise platforms, and interaction connected our views for the remainder of the twelvemonth earlier passing the treatment implicit to Mary Fox, our President. Mary volition sermon our tailored lawsuit acquisition engines and cardinal maturation enablers. Finally, Keith Siegner, our CFO, volition reappraisal our fiscal results and supply much item connected our Q4 and fiscal 2026 outlook. Beginning with our 3rd quarter, macro conditions proved a small much challenging than we anticipated, with user uncertainty starring to meaningful choppiness week to week, peculiarly successful our little dollar measurement transactions.

As a result, third-quarter nett income were $150.2 million, astir $1 cardinal beneath our guidance range. While we are not blessed with this outcome, it's important to enactment that our absorption connected secular maturation initiatives specified arsenic caller products and the beginnings of a large improvement successful our selling tactics enabled a flimsy year-over-year maturation successful nett sales. Reflecting marketplace stock gains arsenic compared to our category, which we estimation declined astir 2% for the comparable 4th and 4% twelvemonth to date. Adjusted EBITDA and nett nonaccomplishment for the 3rd 4th were wrong our guidance ranges.