The Lovesac Company Reports Preliminary Second Quarter Fiscal Year 2024 Results
31 Agosto 2023 - 5:30PM
The Lovesac Company (Nasdaq: LOVE) (“Lovesac” or the “Company”),
the home furnishing brand best known for its Sactionals, The
World's Most Adaptable Couch, today provided a business update as
it works to complete its previously announced financial
restatements and file its amended Form 10-K for the fiscal year
ended January 29, 2023 and amended Form 10-Q for the fiscal quarter
ended April 30, 2023. The Company also announced that it expects a
delay in filing its Quarterly Report on Form 10-Q for the fiscal
quarter ended July 30, 2023 in light of the continued work on the
restatements.
In the interim, the Company is pleased to provide certain
preliminary unaudited and unreviewed financial results for the
second quarter fiscal 2024 ended July 30, 2023, which exceed the
guidance ranges provided with first quarter fiscal 2024 results on
June 7, 2023:
- Net sales are expected to be approximately $154 million
- Gross margin is expected to be approximately 59%
- Net loss is expected to be in the range of $0.5 million to $1.5
million
The select preliminary second quarter fiscal 2024 results
included above in this press release are based upon preliminary
financial results. These preliminary financial results are based
upon information available to management as of the date of this
press release. The Company’s actual results may differ from these
results due to final adjustments and developments that may arise or
information that may become available between now and the time the
Company’s financial results for second quarter fiscal 2024 are
finalized and included in the Company’s Form 10-Q. These
preliminary results may be subject to further adjustment as a
result of the restatements of historical results. The Company’s
independent registered public accounting firm has not audited,
reviewed, compiled, or performed any procedures with respect to the
preliminary financial results, nor has it expressed any opinion or
any other form of assurance on such results.
Financial Restatements and Postponement of Second
Quarter Fiscal 2024 Financial Results
As announced on August 16, 2023, the Company has determined the
need to restate its previously issued financial statements for
fiscal year 2023 and its first quarter fiscal 2024 primarily due to
errors in accounting for a last mile journal entry and the
methodology used by the Company to calculate the accrual of its
last mile freight expenses. Accordingly, the Company has determined
that it is appropriate to correct the misstatements in the
Company’s previously issued financial statements by amending its
Annual Report on Form 10-K for the fiscal year ended January 29,
2023 (the “2023 Form 10-K/A”) and its Quarterly Report on Form 10-Q
for the fiscal quarter ended April 30, 2023 (the “First Quarter
2024 Form 10-Q/A”). The Company is working diligently to file its
2023 Form 10-K/A and First Quarter 2024 Form 10-Q/A as
expeditiously as possible.
Given the time and focus dedicated to the restatement process
and the completion and filing of the Company’s 2023 Form 10-K/A and
First Quarter 2024 Form 10-Q/A, the Company currently expects a
delay in completing its customary quarterly review and reporting
process and the filing of its Form 10-Q for the fiscal second
quarter ended July 30, 2023.
Lovesac will make a subsequent announcement to schedule the date
and time of its earnings release and conference call for the second
quarter fiscal 2024.
About The Lovesac Company
Based in Stamford, Connecticut, The Lovesac Company (NASDAQ:
LOVE) is a technology driven company that designs, manufactures and
sells unique, high-quality furniture derived through its
proprietary Designed for Life approach which results in products
that are built to last a lifetime and designed to evolve as
customers' lives do. The current product offering is comprised of
modular couches called Sactionals, premium foam beanbag chairs
called Sacs, and the Sactionals StealthTech™ Sound + Charge System.
As a recipient of Repreve's 6th Annual Champions of Sustainability,
responsible production and innovation are at the center of the
brand's design philosophy with products protected by a robust
portfolio of utility patents. Products are marketed and sold
primarily online directly at www.lovesac.com, supported by
direct-to-consumer touch points in the form of our own showrooms,
as well as through shop-in-shops and pop-up-shops with third party
retailers. LOVESAC, SACTIONALS, AND THE WORLD'S MOST ADAPTABLE
COUCH are trademarks of The Lovesac Company and are Registered in
U.S. Patent and Trademark Office.
Cautionary Statement Concerning Forward-Looking
Statements
This press release 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,” “believe,” “anticipate,”
“could,” “should,” “intend,” “plan,” “will,” “aim(s),” “can,”
“would,” “expect(s),” “estimate(s),” “project(s),” “forecast(s)”,
“positioned,” “approximately,” “potential,” “goal,” “pro forma,”
“strategy,” “outlook” or the negative of these words or other
similar terms or expressions that concern our expectations,
strategy, plans, or intentions. All statements, other than
statements of historical facts, included in this press release
including all statements regarding strategy, future operations,
future financial position or projections, the significance and
scope of the restatements; the preliminary results for the second
fiscal quarter 2024; the quantitative effects of the restatements;
the timing of completion of the restatements and SEC filings; the
impact of these matters on the Company’s performance and outlook;
and any anticipated conclusions of the Company or the Company’s
management. These statements are based on management’s current
expectations, beliefs and assumptions concerning the future of our
business, anticipated events and trends, the economy and other
future conditions. We may not actually achieve the plans, carry out
the intentions or meet the expectations disclosed in the
forward-looking statements and you should not rely on these
forward-looking statements. Actual results and performance could
differ materially from those projected in the forward-looking
statements as a result of many factors. Among the key factors that
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include:
changes in the effects of the restatements on the prior financial
statements or financial results risks related to the timely and
correct completion of the restatement and related filings; the risk
that the completion and filing of the 2023 Form 10-K/A and First
Quarter 2024 Form 10-Q/A will take longer than expected and will
not be completed timely; identification of errors in our financial
reporting in the future that require us to restate previously
issued financial statements, which may subject us to unanticipated
costs or regulatory penalties and could cause investors to lose
confidence in the accuracy and completeness of our financial
statements; the risk that additional information may become known
prior to the expected filing with the SEC of the periodic reports
described herein or that other subsequent events may occur that
would require the Company to make additional adjustments to its
financial statements or delay the filing of the corrected or future
periodic reports with the SEC; risks related to higher than
expected charges after completing the restatement process; risks
related to our ability to implement and maintain effective internal
control over financial reporting in the future, which may adversely
affect the accuracy and timeliness of our financial reporting;
risks related to changes in key personnel and any changes in our
ability to retain key personnel; the inherent limitations in
internal control over financial reporting; the scope of the
restatement and the controls and procedures deficiencies; plans to
remediate the deficiencies, including the material weakness, with
respect to the Company’s internal control over financial reporting
and disclosure controls and procedures; the impact of these matters
on the Company’s performance and outlook; expectations concerning
the Company’s performance and financial outlook, as well as those
risks and uncertainties disclosed under the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our most recent Form 10-K
and in our Form 10-Qs filed with the Securities and Exchange
Commission, and similar disclosures in subsequent reports filed
with the SEC, which are available on our investor relations website
at investor.lovesac.com and on the SEC website at www.sec.gov. Any
forward-looking statement made by us in this press release speaks
only as of the date on which we make it. We disclaim any intent or
obligation to update these forward-looking statements to reflect
events or circumstances that exist after the date on which they
were made.
Investor Relations Contact:Rachel Schacter,
ICR(203) 682-8200InvestorRelations@lovesac.com
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