RECORD RESULTS
As people stayed home and redecorated during the pandemic, the furniture industry boomed, and Stamford-based Lovesac has been one of the biggest beneficiaries.
STAMFORD — A year ago, furniture maker Lovesac had temporarily closed its showrooms and announced it would cut most of its workforce in response to the onset of the coronavirus pandemic.
Since then, its prospects have improved dramatically as it has benefited from a boom in furniture sales driven by the increased time millions of Americans are spending at home during the pandemic. The Stamford-based company has re-opened its stores and filled many of the positions affected by the downsizing, as it has markedly grown its customer base.
Highlighting its comeback, Lovesac reported Wednesday company-record financial results for its past quarter and fiscal year. Reflecting a surge during the past holiday season, it recorded sales of about $130 million for the quarter ending Jan. 31, up 41 percent year over year. For its fiscal year ending Jan. 31, its sales reached nearly $321 million.
“Despite the challenging backdrop, fiscal 2021 was a landmark year for Lovesac,” Shawn Nelson, Lovesac founder and CEO, said in an earnings call with investment analysts. “We could not have achieved this without the grit and determination of our team. The COVID pandemic illustrated even more clearly the strength of our people, brand, business model and operating platform.”
For its past fiscal year, it recorded a profit of nearly $15 million, compared with a loss of about $15 million in its previous fiscal year.
The company was “perhaps more profitable than we would have intended in our long-term plans,” Nelson said. “We intend to continue to growth the business profitably. However, many investments in infrastructure and headcount were put off and will be made in fiscal year 2022 to support our outlook for long-term growth.”
Driving the growth, Lovesac’s quarterly internet sales jumped 86