STAMFORD, Conn. – Net sales for Lovesac, the furniture company known for its Sactional adaptable sofas, grew by 51.3% in the fourth quarter and 55.4% for fiscal year 2022.
Gross profit dollars increased by 45.9% to $ 109.4 million for the fourth quarter of fiscal 2022, compared with $ 75.1 million in the fourth quarter of last year.
Net income increased by 50.4% to $ 32.6 million for the fourth quarter of fiscal 2022, compared with $ 21.7 million in the prior year period. This resulted in net earnings per share of $ 2.15 compared with net earnings per share of $ 1.44 in the fourth quarter of last year, an increase of 49.3%.
“Lovesac’s continued strong financial performance in the face of a myriad of macro and industry shifts affirms the power of our unique business model and products,” said Shawn Nelson, Lovesac CEO. flexibility, highly-engaged customers, innovation and a proven omnichannel approach, will only grow stronger over time as our progress along the product adoption curve steepens and word of mouth continues to gain strength. ”
Nelson added that the curve would benefit further from deep in stock positions that allow the company to deliver and execute for its customers in a timelier manner, leading to further share gains and solidified customer loyalty.
“We’ll continue to drive this growth by remaining focused on key drivers: smart investments in product extensions and technology, creative deployment of our omnichannel sales model, supply chain and operating efficiencies,” he added. 15 quarters of continual sales growth. ”
For the full year, net sales came in at $ 498.2 million, which is a 55.3% increase over last year’s net sales of $ 320.7 million. Gross profit for the full year came in at $ 273.3 million, which is a 56.4% increase over last year’s gross profit of $ 178.4 million. Earnings per share for the full year came in at $ 3.04 which is a 200.8% improvement over last year’s EPS of $ 1.01.
On the quarterly earnings call with investors, Nelson said the increase in sales was related to a strong holiday promotional campaign with lower discounting and the addition of 28 new showrooms, eight kiosks and two mobile concierge vehicles compared with the prior year period. to open 25 new showrooms during the 2023 fiscal year.
“We are very confident around demand and in our ability to supply to customers in a matter of days,” said Mary Fox, Lovesac president and COO on the quarterly earnings call with investors. We continue to focus on our strengths when everyone else is often unable to deliver. But, we are very mindful of that and will continue to watch and adjust. ”