Lovesac sees ‘huge gains’ in 2021

STAMFORD — Nearly a year and a half ago, furniture maker Lovesac temporarily closed its showrooms in response to the first wave of the COVID-19 pandemic.

Today, all of its stores have reopened, and they are driving double-digit revenue growth for the Stamford-based company.

Highlighting that rebound, Lovesac reported Thursday sales of about $102 million for the quarter ending Aug. 1, up 65 percent year over year. Boosted by that growth, the company recorded a profit of $8.4 million, compared with a loss of $1.1 million in the same quarter last year.

Following the release of the quarterly results, Lovesac shares closed Thursday at about $63, a 24 percent jump from Wednesday. In comparison, its shares hit a 52-week high of about $96 and a 52week low of around $23.

“We are very pleased with our second-quarter results, as the momentum from Q1 continued into Q2, and we achieved our highest quarterly growth rate ever recorded as a public company,” Shawn Nelson, Lovesac’s founder and CEO, said in an earnings call with investment analysts. “Bottom line, we believe our continued success stems from the huge gains we are making as a brand in terms of awareness and conversion while actively managing the tight supply-chain environment.”

Showroom sales rocketed 387 percent year over year, reflecting the full openings of all stores in the past quarter compared with their limited operations a year ago because of the impact of COVID-19.

Lovesac opened seven showrooms in the past quarter and plans to make 28 openings this year. It has a total of 123 locations, compared with 97 a