Daily News
From Home Furnishing Business
Lovesac Hosts Investor Day and Details Multi-Year Algorithm
December 18,
2024 by Karen Parrish in Business Strategy, Industry 
The Lovesac Company, the home furnishing brand best known for its Sactionals, The World's Most Adaptable Couch, hosted an Investor Day on Dec 17 at 10:00 am ET. A replay of the event and the related published materials are available by accessing Lovesac’s IR website at https://investor.lovesac.com/.
The event featured presentations by members of Lovesac’s leadership team, followed by a live question-and-answer session.
Chief Executive Officer, Shawn Nelson, President and Chief Operating Officer, Mary Fox, Executive Vice President and Chief Financial Officer, Keith Siegner, and other members of the senior leadership team will provide an in-depth review of the company's strategic framework, new products, growth initiatives, commitment to operational excellence, and financial ambitions.
In connection with the event, the Company has introduced a multi-year financial algorithm. The Company estimates a normalized year to achieve the following:
— Annual Net Sales Growth of +10% to +15%;
— Gross Margin Rate of 59% to 60%;
— Advertising & Marketing of ~12.5% of Net Sales;
— Annual Adjusted EBITDA Margin Rate Expansion of 50 basis points to 100 basis points; and
— Annual EPS Growth of at least 25%.
Specifically for Fiscal 2026, the Company provided the following preliminary expectations:
— Annual Net Sales Growth of +7% to +12%;
— Gross Margin Rate of ~59%;
— Advertising & Marketing of ~12.5% of Net Sales;
— Annual Adjusted EBITDA Margin Rate Expansion of 100 basis points to 150 basis points; and
— Annual EPS Growth of at least 100%.
The above financial targets assume annual industry outperformance of +10% to +15% and a tax rate of ~26.5% and does not consider any potential impact from any new tariffs.