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From Home Furnishing Business
Lovesac Sales Leap 45% as Sactionals Producer Continues Market Share Gains
September 8,
2022 by HFBusiness Staff in Business Strategy, Industry 
Upholstery producer Lovesac, which sells products online and in branded retail stores and kiosks, said sales jumped 45 percent to $148.5 million in the quarter ended July 31.
The company said the sales increase during a period when many manufacturers are reporting sales declines shows Lovesac is gaining market share due to its value proposition and industry-leading in-stock position.
“While we expect the dynamic operating environment to persist through the rest of this year, our growth strategies are designed to fortify our position and build on our market share gains including our efforts around a key product innovation, StealthTech, effective marketing and merchandising strategies, productivity expansion of our touchpoints, and healthy digital channel growth,” said Shawn Nelson, CEO.
“The significant runway we have with our strategic initiatives combined with our focus on disciplined execution gives me confidence in our ability to drive our share gains in any type of macro environment while also accelerating our growth investments as we continue to scale the business.”
Net income for the quarter totaled $7.1 million or 45 cents per share. That was down from $8.4 million or 52 cents per share in the same quarter last year.
For the six months ended July 31, sales jumped 49.9 percent to $277.9 million. Six-month net income was $9 million or 56 cents per share. That was down from net income of $10.5 million or 66 cents per share in the same period last year.
Lovesac ended the quarter with 174 retail showrooms, including 35 that were opened during the quarter. The company also opened 14 kiosks and two mobile concierges during the quarter, as well as 18 “shop-in-shop” locations in Best Buy stores.