On Thursday, Lovesac (NASDAQ: LOVE) discussed first-quarter financial results during its earnings call. The full transcript is provided below.

在週四，Lovesac（納斯達克：LOVE）在其財報電話會議中討論了第一季度的財務結果。完整的文字記錄如下。

This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/.

此內容由 Benzinga API 提供。有關全面的財務數據和文字記錄，請訪問 https://www.benzinga.com/apis/。

View the webcast at https://viavid.webcasts.com/starthere.jsp?ei=1752935&tp_key=27608a38b5

查看網絡直播：https://viavid.webcasts.com/starthere.jsp?ei=1752935tp_key=27608a38b5

Summary

摘要

Lovesac's net sales decreased slightly by 0.1% to $138.2 million for the first quarter, outperforming a declining furniture category.

Lovesac 的淨銷售額在第一季度略微下降 0.1%，降至 1.382 億美元，表現優於下滑的傢俱類別。

The company is committed to evolving from a product-driven entity to a multi-platform lifestyle brand, emphasizing long-lasting, adaptable products.

該公司致力於從以產品為驅動的實體轉變為多平台生活方式品牌，強調持久和適應性強的產品。

Future strategic initiatives include expanding product offerings for the living room and launching new products for another room by fiscal 2028.

未來的戰略舉措包括在 2028 財年之前擴大客廳產品的種類，併為其他房間推出新產品。

Operational highlights include the planned start of domestic manufacturing for sactional seats, expected to reduce costs and improve fulfillment speed.

運營亮點包括計劃開始國內製造可拆分座椅，預計將降低成本並提高履行速度。

Despite a challenging macroeconomic environment, Lovesac maintained a strong balance sheet with $57.0 million in cash and no debt.

儘管宏觀經濟環境充滿挑戰，Lovesac 仍保持強勁的資產負債表，擁有 5700 萬美元現金且沒有債務。

Management remains optimistic about long-term growth, focusing on customer relationships, marketing improvements, and supply chain resilience.

管理層對長期增長保持樂觀，專注於客户關係、市場營銷改進和供應鏈韌性。

The company is leveraging AI to enhance digital marketing strategies and improve customer engagement.

該公司正在利用人工智能來增強數字營銷策略並改善客户參與度。

Guidance for fiscal year 2027 includes net sales of $700 to $740 million and adjusted EBITDA between $35 and $46 million.

2027 財年的指導包括淨銷售額在 7 億到 7.4 億美元之間，調整後的 EBITDA 在 3500 萬到 4600 萬美元之間。

Full Transcript

完整文字記錄

OPERATOR

主持人

Greetings welcome to Lovesac's first quarter fiscal 2027 earnings conference call. At this time, all participants are in listen only mode. The question and answer session will follow the formal presentation. We ask you to please limit yourself to one question and one follow up. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Colton West with investor relations. Thank you. You may begin.

歡迎來到 Lovesac 2027 財年第一季度財報電話會議。此時，所有參與者均處於僅聽模式。問答環節將在正式演示後進行。請您限制提問為一個問題和一個後續問題。提醒您，本次會議正在錄音。現在我想將會議交給您的主持人，投資者關係部的 Colton West。謝謝。您可以開始。

Colton West (Investor Relations)

Colton West（投資者關係）

Thank you. Good morning everyone. With me on the call today is Shawn Nelson, Chief Executive Officer, Mary Fox, President and Keith Signer, Chief Financial Officer. Before we get started, I would like to remind you that some of the information discussed will include forward looking statements regarding future events and our future financial performance. These include statements about our future expectations, financial projections and our plans and prospects.

謝謝。大家早上好。今天與我一起參加電話會議的有首席執行官 Shawn Nelson，總裁 Mary Fox 和首席財務官 Keith Signer。在我們開始之前，我想提醒您，討論的某些信息將包括關於未來事件和我們未來財務表現的前瞻性陳述。這些包括關於我們未來預期、財務預測以及我們的計劃和前景的陳述。

Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the Company's filings with the SEC, which includes today's press release. You should not rely on our forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on assumptions and beliefs as of today and we undertake no obligation to update them except as required by applicable law.

實際結果可能與這些陳述中所列的內容有重大差異。有關這些風險和不確定性的討論，您應查看公司向 SEC 提交的文件，其中包括今天的新聞稿。您不應將我們的前瞻性陳述視為未來事件的預測。我們在本次電話會議上所做的所有前瞻性陳述均基於截至今天的假設和信念，除非適用法律要求，否則我們不承擔更新的義務。

Our discussion today will include non GAAP financial measures, including EBITDA and adjusted EBITDA. These non GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of the most directly comparable GAAP financial measure to such non GAAP financial measure has been provided as supplemental financial information in our press release. Now I would like to turn the call over to Shawn Nelson, Chief Executive Officer of the Lovesac Company.

今天的討論將包括非 GAAP 財務指標，包括 EBITDA 和調整後的 EBITDA。這些非 GAAP 指標應與我們的 GAAP 結果一起考慮，而不是替代或孤立於我們的 GAAP 結果。與這些非 GAAP 財務指標最直接可比的 GAAP 財務指標的調節已作為補充財務信息提供在我們的新聞稿中。現在我想將電話交給 Lovesac 公司的首席執行官 Shawn Nelson。

Shawn Nelson (Chief Executive Officer)

Shawn Nelson（首席執行官）

Good morning everyone. Thank you for joining us today. I'll start our conversation by sharing a brief review of our strategic roadmap. Then I'll provide a high level summary of our first quarter fiscal 2027 performance and finally I'll discuss exciting updates on our strategic initiative. Mary Fox, our President, will then take you through our customer acquisition engines, operational initiatives and key growth enablers. Finally, Keith Signer, our CFO, will dive deeper into our financial results and provide additional detail on our outlook for fiscal second quarter and the remainder of fiscal 2027.

大家早上好。感謝您今天的參與。我將開始我們的對話，簡要回顧我們的戰略路線圖。然後，我將提供 2027 財年第一季度業績的高層次總結，最後我將討論我們戰略舉措的令人興奮的更新。我們的總裁 Mary Fox 將帶您瞭解我們的客户獲取引擎、運營舉措和關鍵增長推動因素。最後，首席財務官 Keith Signer 將深入探討我們的財務結果，並提供關於 2027 財年第二季度及其餘時間的展望的更多細節。

Before getting into the core specifics, I want to begin with the broader strategic landscape as I believe the operating environment we find ourselves in today increasingly favors differentiated brands with disciplined execution, structurally advantaged product platforms and enterprises intentionally focused on building long term customer relationships. That is exactly what LoveSac has spent years architecting and operationalizing as I've shared in the past.

在進入核心細節之前，我想先談談更廣泛的戰略環境，因為我相信我們今天所處的運營環境越來越有利於具有差異化品牌、嚴格執行、結構性優勢產品平台以及有意專注於建立長期客户關係的企業。這正是 Lovesac 多年來所構建和運營的目標，正如我過去所分享的那樣。

We are evolving from a product driven company into a multi platform, multi room lifestyle brand. A brand we believe will become America's most loved home brand and over time one of its most loved brands. That is what we build our strategy and execution agenda around. We are not trying to compete through endless assortments, seasonal replacement cycles or trend driven merchandising. Instead, we are building long duration product platforms designed to evolve with our customers lives over years and decades.

我們正在從一家以產品為驅動的公司轉變為一個多平台、多房間的生活方式品牌。我們相信這個品牌將成為美國最受喜愛的家居品牌，並隨着時間的推移成為其最受喜愛的品牌之一。這就是我們圍繞其構建戰略和執行議程的基礎。我們並不是試圖通過無盡的產品組合、季節性替換週期或趨勢驅動的商品來競爭。相反，我們正在構建長期的產品平台，旨在隨着客户的生活在多年和幾十年中不斷演變。

Products that are built to last and designed to evolve. Design for Life is not simply a tagline for us, it's an engineering principle. It is a product philosophy and increasingly it is becoming a broader emotional framework for how customers connect with the Lovesac brand itself. Context is important here. The world offers static solutions to dynamic problems, but this doesn't work. Why? It's simple. People's lives evolve, Their homes evolve, their families evolve.

我們的產品旨在持久並設計為可演變。‘為生活而設計’ 對我們來説不僅僅是一個標語，它是一種工程原則。這是一種產品哲學，越來越成為客户與 Lovesac 品牌本身建立聯繫的更廣泛情感框架。在這裏，背景非常重要。世界為動態問題提供靜態解決方案，但這並不起作用。為什麼？很簡單。人們的生活在演變，他們的家在演變，他們的家庭在演變。

That is exactly what our Design for Life ecosystem is built to do. Over the next four quarters you will see us bring this ethos to market. First through the enhancement of our offerings for the living room and second through our planned launch of a portfolio of distinctive and relevant products for a new room of the home in calendar 2027. Our fiscal 2028 importantly, our unique approach to product philosophy is resonating within a category that remains pressured and highly promotional.

這正是我們的 “為生活而設計” 生態系統所建立的目標。在接下來的四個季度裏，您將看到我們將這一理念推向市場。首先是通過提升我們在客廳的產品供應，其次是通過我們計劃在 2027 年推出一系列獨特且相關的產品，針對家庭中的一個新空間。對於我們的 2028 財年而言，我們獨特的產品理念在一個仍然面臨壓力且高度促銷的類別中引起了共鳴。

During the fiscal first quarter once again our teams rose to the challenge, delivering market share growth and with financial results. In line with our guidance, net sales for the quarter decreased approximately 0.2 million or 0.1% versus the prior year period against a furniture category that declined 2.2% and high end furniture which declined by 5% operationally. We also continued see encouraging proof points that the platform model is resonating.

在 2027 財年第一季度，我們的團隊再次迎接挑戰，實現了市場份額的增長和財務業績的提升。根據我們的指導，季度淨銷售額較去年同期下降約 20 萬美元，下降幅度為 0.1%，而傢俱類別下降了 2.2%，高端傢俱的下降幅度為 5%。我們也繼續看到平台模式引起共鳴的令人鼓舞的證據。

We saw significant momentum in our larger configurations showing that the customer is willing to trade up if the value proposition is right. Reclining seat continues to outperform our expectations and attachment rates have remained strong at nearly one out of every three configurations. Getting a recliner Snug, which was still less than a year old, continues to broaden our reach into comfort seating and smaller space living while reinforcing the same principles of comfort, durability, maintainability and flexibility that Lovesac has become known for. 80% of Snug customers are new to Lovesac, proving our thesis that we could expand our customer appeal while minimizing cannibalization. Equally important is that nearly half our Snug sales are through our e commerce channels, showcasing our ability to develop digital first products that can win profitably in those channels. These are not isolated product signals. They are proof points that design for life product platform attachment is real and that our solutions solve real customer pain points in ways that traditional furniture just can't. To that end, we are proud to share that Lovesac moved up two places in Furniture Today's Top 100 Retailers list. We're now the 17th largest furniture retailer in the country, and what's most exciting to me is how that is achieved. With substantial greenfield opportunity ahead of us, our first quarter continued the momentum in building the substantial foundational work around our broader brand evolution strategy. This work helped clarify product hierarchy, merchandising strategy, positioning architecture, customer segmentation, and how it all manifests to the consumer under our here for life marketing evolution, which is rolling out as we speak.

我們在更大配置的產品上看到了顯著的勢頭，顯示出客户願意在價值主張合適的情況下進行升級。可調座椅的表現持續超出我們的預期，配件率保持強勁，接近每三個配置中就有一個。Snug 可調座椅，儘管上市不到一年，仍在不斷拓展我們在舒適座椅和小空間生活中的影響力，同時強化了 Lovesac 所知名的舒適性、耐用性、可維護性和靈活性原則。80% 的 Snug 客户是首次接觸 Lovesac，證明了我們的理論，即我們可以在最小化自我競爭的同時擴大客户吸引力。同樣重要的是，近一半的 Snug 銷售來自我們的電子商務渠道，展示了我們開發能夠在這些渠道中盈利的數字優先產品的能力。這些並不是孤立的產品信號，而是 “為生活而設計” 產品平台附加值的真實證明，我們的解決方案以傳統傢俱無法做到的方式解決了客户的真實痛點。為此，我們自豪地分享，Lovesac 在《傢俱今日》雜誌的前 100 家零售商名單中上升了兩個名次。我們現在是美國第 17 大傢俱零售商，而對我來説，最令人興奮的是這是如何實現的。在我們面前有着巨大的新市場機會，我們的第一季度繼續在圍繞更廣泛的品牌演變戰略上建立實質性的基礎工作。這項工作幫助明確了產品層級、商品策略、定位架構、客户細分，以及這一切如何在我們的 “為生活而在” 市場演變中向消費者展現。

At the same time, we are continuing to invest in a modern marketing engine that will turbocharge our brand consideration and reduce our customer acquisition costs, leading to accelerated demand generation and higher customer ltv. Mary will share more about this in a moment. Because ultimately we believe the future of LoveSac is not just about selling more couches. It is about deepening the relationship our customers have with our brand, winning their loyalty and their love as we prove our ability to evolve in the same way their lives do.

與此同時，我們繼續投資於現代營銷引擎，以加速我們的品牌認知並降低客户獲取成本，從而推動需求生成和提高客户終身價值。瑪麗稍後會分享更多信息。因為最終我們相信，Lovesac 的未來不僅僅是銷售更多沙發，而是加深客户與我們品牌之間的關係，贏得他們的忠誠和熱愛，同時證明我們能夠以與他們的生活相同的方式不斷演變。

Simultaneously with this brand evolution work, we've made substantial progress on one of our most important structural initiatives, bringing manufacturing onshore to the US While bringing manufacturing closer to the customer has long been an aspiration for lovesac, the realities of the uncertain tariff landscape, freight volatility, and broader geopolitical uncertainty only reinforced the importance of building a more regionalized, resilient and flexible sourcing model.

與品牌演變工作同時進行的是，我們在最重要的結構性舉措之一上取得了實質性進展，即將製造業帶回美國。雖然將製造業更靠近客户一直是 Lovesac 的願望，但不確定的關税環境、運輸波動和更廣泛的地緣政治不確定性進一步強化了建立更區域化、韌性和靈活的採購模式的重要性。

But it's not economically attractive to simply make the exact same product in the same basic way just in the US and that's where loveseq has a differentiated advantage. Our high volume core SKU architecture enables levels of automation and manufacturing efficiency that are difficult for traditional furniture players to replicate at scale. Even with that foundation, we've redesigned these products from the ground up to optimize automation, improve manufacturability, enhance comfort and functionality, and refresh portions of our intellectual property portfolio, all while maintaining reverse compatibility across every Sactional ever sold.

但僅僅在美國以相同的基本方式製造完全相同的產品在經濟上並不具吸引力，而這正是 Lovesac 的差異化優勢所在。我們的高容量核心 SKU 架構使得自動化和製造效率達到傳統傢俱企業難以大規模複製的水平。即使在這一基礎上，我們也從頭開始重新設計這些產品，以優化自動化、改善可製造性、增強舒適性和功能性，並更新我們知識產權組合的部分內容，同時保持所有已售 Sactional 的反向兼容性。

We remain on track to begin domestic manufacturing of Sactional seats this summer. Over time, we expect this initiative to help reduce cost volatility, improve fulfillment speed, reduce dependency on long international freight cycles, and strengthen our ability to deliver the fast customer experiences we are known for. I believe LoveSac enters the remainder of fiscal 2027 from a position of increasing strategic clarity and strength. We know who we are, we know how we're differentiated and we know where the opportunities are.

我們仍然按計劃在今年夏天開始國內生產 Sactional 座椅。隨着時間的推移，我們預計這一舉措將有助於降低成本波動、提高履約速度、減少對長途國際運輸週期的依賴，並增強我們提供快速客户體驗的能力。我相信 Lovesac 在 2027 財年的剩餘時間裏將以日益清晰和強大的戰略地位進入。我們知道我們是誰，我們知道我們的差異化之處，以及我們知道機會在哪裏。

We entered fiscal 2027 having proven three important things. First, the Lovesac brand is vibrant and the love for design for life products is real. Second, that our customer acquisition engine compounds over time as our design for Life platforms expand and third, that the foundational work completed over the last several years from the modernization of our marketing engine to our best in class website and showrooms network to supply chain diversification and onshoring initiatives, give us increasing flexibility to navigate a highly dynamic environment while continuing to build for the long term.

我們在 2027 財年開始時證明了三件重要的事情。首先，Lovesac 品牌充滿活力，對 “為生活而設計” 產品的熱愛是真實的。第二，我們的客户獲取引擎隨着 “為生活而設計” 平台的擴展而逐漸增強。第三，過去幾年完成的基礎性工作，從現代化我們的營銷引擎到我們的最佳網站和展廳網絡，再到供應鏈多樣化和製造業回流的舉措，使我們在應對高度動態環境時具備了越來越大的靈活性，同時繼續為長期發展奠定基礎。

The macro will be where the macro will be, so our focus remains on building a brand and business that can continue to gain meaningful market share, expanding categories from the mailbox to the backyard fence, and strengthening long term customer relationships irrespective of short term market conditions. We are pleased to be in such a position of strength, a strong balance sheet with solid cash position and no debt, lower and well positioned inventory, a clear strategic roadmap and a world class team executing it.

宏觀經濟將會是宏觀經濟，因此我們的重點仍然是建立一個能夠持續獲得有意義市場份額的品牌和業務，從郵箱到後院圍欄擴展類別，並在短期市場條件下加強長期客户關係。我們很高興處於如此強大的地位，擁有強勁的資產負債表、穩健的現金狀況和無債務、庫存低且定位良好、清晰的戰略路線圖以及執行這一切的世界級團隊。

A lot of the work we're doing here in product and marketing and supply chain will start to culminate towards the end of this year, giving us tremendous confidence in the plan and what it will enable ongoing. And finally, I want to sincerely thank our teams, associates, partners, shareholders and the entire hashtag LoveSacFamily for their continued dedication, creativity, resilience and passion as we continue building what we believe can become the most loved home brand in America.

我們在產品、市場營銷和供應鏈方面所做的許多工作將在今年年底開始匯聚，給我們帶來了對計劃及其持續推動的巨大信心。最後，我想真誠地感謝我們的團隊、合作伙伴、股東以及整個#LoveSacFamily，感謝他們的持續奉獻、創造力、韌性和熱情，幫助我們繼續打造我們相信可以成為美國最受喜愛的家居品牌。

With that, I'll turn the call over to Mary.

接下來，我將把電話交給瑪麗。

Mary Fox (President)

瑪麗·福克斯（總裁）

Thank you Sean. Our first superpower designed for Life product platforms continue to demonstrate their ability to grow more valuable over time as customers maintain them, adapt them and evolve them. That dynamic is what powers our economics and long term value creation. Potential LoveSac turns first time buyers into long term relationships, compounding immediate customer acquisition cost payback with lifetime value expanders through a combination of strong brand unique product and platform innovation and deep customer engagement.

謝謝你，肖恩。我們為生活設計的第一款超級產品平台繼續展示出隨着客户維護、適應和演變而變得更有價值的能力。這種動態是推動我們經濟和長期價值創造的動力。潛在的 LoveSac 將首次購買者轉變為長期關係，通過強大的品牌、獨特的產品和平台創新以及深度客户參與，複合即時客户獲取成本回報與終身價值擴展。

And importantly, it is not theoretical launches like reclining seat not only drive customer demand but activate our installed base, reinforcing the flywheel between innovation, new customer acquisition and durable repeat customer revenue growth. As we expand into new platforms and new rooms, we're confident that our platform model and the customer acquisition engines that activate it will position us to further amplify both customer lifetime value and meaningful profitable growth for years to come.

重要的是，這並不是理論上的發佈，像可調座椅不僅推動客户需求，還激活我們的已安裝基礎，強化創新、新客户獲取和持久重複客户收入增長之間的飛輪。隨着我們擴展到新的平台和新房間，我們相信我們的平台模型和激活它的客户獲取引擎將使我們能夠進一步放大客户終身價值和有意義的盈利增長。

Turning to quarter one, we're proud of our teams for navigating the continued uncertainty of the category and macro environment by staying laser focused on our key priorities for fiscal 27 igniting the core and building for scale as we turbocharge our customer acquisition engines to drive profitable growth while preparing to launch into a new room of the home over the next 12 months. While trends have been fairly consistent since the fall, I thought it worth a moment to share some details of what we're seeing within our customer demand.

轉向第一季度，我們為我們的團隊在應對類別和宏觀環境持續不確定性方面感到自豪，他們始終專注於我們 2027 財年的關鍵優先事項，點燃核心併為規模建設做好準備，同時加速我們的客户獲取引擎以推動盈利增長，並準備在未來 12 個月內進入家庭的新房間。儘管自秋季以來趨勢相對一致，但我認為值得花一點時間分享我們在客户需求方面所看到的一些細節。

Given record low consumer sentiment, it's not overly surprising that we continue to see some softness in the under 6,000 transactions here. the other end of the spectrum, our premium value enhancers like Love Soft Fill Storage and Reclining Seat have been able to offset that softness and we've experienced mid double digit growth in our over $6,000 transactions for the balance of the year. Our efforts will be concentrated on leaning into this high dollar value transaction growth while improving accessibility and competitiveness in the opening price point options.

鑑於消費者情緒創下歷史低點，我們繼續看到 6000 以下交易的某種疲軟並不令人驚訝。在光譜的另一端，我們的高端價值增強產品，如 Love Soft Fill Storage 和可調座椅，能夠抵消這種疲軟，我們在 6000 以上的交易中經歷了中雙位數的增長。我們的努力將集中在推動這一高價值交易增長的同時，提高開盤價選項的可及性和競爭力。

We'll have more to share on this in coming quarters. Let's now focus on our brand and performance marketing engine. Sean referenced the modernization of our playbook, which is not simply rooted in spending differently, but in operating differently as we build towards winning an AI (Artificial Intelligence) driven modern discovery. Quarter one demonstrated our ability to improve media efficiency and optimize advertising and marketing investment and we are seeing signs that the strategy is working.

我們將在接下來的季度中分享更多信息。現在讓我們關注我們的品牌和表現營銷引擎。肖恩提到了我們劇本的現代化，這不僅僅是根植於不同的支出，而是在我們朝着贏得以人工智能驅動的現代發現的方向上以不同的方式運營。第一季度展示了我們改善媒體效率和優化廣告及市場投資的能力，我們看到這一戰略正在奏效。

We're strengthening the brand to both drive sales now and build equity over the long term. Our Here for Life creative evolution is live in market, improving both emotional connection and cultural relevance while bringing new and repeat customers into the funnel and converting them. While other furniture brands seek to sell perfection, lovesac is going to show perfect reality. Real homes, real people, real emotion because real life is what we are here for.

我們正在加強品牌，以推動當前銷售並在長期內建立品牌價值。我們的 “為生活而在” 創意演變已在市場上推出，改善了情感聯繫和文化相關性，同時將新客户和回頭客引入漏斗並轉化他們。其他傢俱品牌試圖銷售完美，而 LoveSac 將展示完美的現實。真實的家，真實的人，真實的情感，因為我們在這裏就是為了真實的生活。

Here for Life is a full 360 degree campaign with paid owned site, store and resale running from now through July. We continue to be at the epicenter of the cultural zeitgeist by tapping into important demand moments with strong campaign messaging and creative Our Ditch the Situation Ship campaign activated around the February holiday window spanning both Valentine's Day and President's Day and was based on a simple insight Too many people are settling in life, particularly on their couch.

“為生活而在” 是一個全面的 360 度活動，涵蓋了付費、擁有的網站、商店和轉售，從現在到七月持續進行。我們通過強有力的活動信息和創意，繼續處於文化潮流的中心，抓住重要的需求時刻。我們的 “擺脱情感船” 活動在二月的假期窗口激活，跨越情人節和總統日，基於一個簡單的洞察：太多人在生活中妥協，尤其是在他們的沙發上。

We tapped into the broader cultural conversation around upgrading what no longer serves you and translated it into a compelling home category message and the Results were strong. 1.2 billion earned impressions and paid search up 33% and it's a great example of the marketing engine we're building, one that strengthens the brand while delivering against our sales targets. We drove meaningful efficiency gains while scaling demand for the quarter. We estimate our Revenues attributed directly to Media grew 13% and we drove double digit return on ad spend improvements through continued repositioning of our marketing model.

我們抓住了關於升級不再服務於你的事物的更廣泛文化對話，並將其轉化為一個引人注目的家居類別信息，結果非常強勁。12 億次獲得的印象，付費搜索增長 33%，這是我們正在建立的營銷引擎的一個很好的例子，它在實現銷售目標的同時加強了品牌。我們在擴大需求的同時實現了顯著的效率提升。我們估計，直接歸因於媒體的收入增長了 13%，並通過持續重新定位我們的營銷模型實現了雙位數的廣告支出回報改善。

That repositioning is a continuation of our migration from linear heavy media to a fully integrated digital first ecosystem powered by social search, influence and creator content. This is not just a channel mix shift, rather it is a structural shift to an integrated acquisition system that enables continuous optimization, better targeting and compounding returns over time. I also want to add that while advertising spend for the quarter was down, it was driven by planned timing of activations and we're optimistic that the efficiency gains in quarter one will scale as we invest closer to our historic levels across the balance of the year.

這種重新定位是我們從線性重媒體向完全整合的數字優先生態系統遷移的延續，該生態系統由社交搜索、影響者和創作者內容驅動。這不僅僅是渠道組合的變化，而是向一個集成獲取系統的結構性轉變，使得持續優化、更好的定位和複合回報成為可能。我還想補充一點，儘管本季度的廣告支出有所下降，但這是由於計劃的激活時機所致，我們對第一季度的效率提升在未來將隨着我們在全年內接近歷史水平的投資而擴大持樂觀態度。

Finally, we're building a competitive advantage in modern discovery. In quarter one we invested in AI (Artificial Intelligence) readable content, structured data and creator ecosystems to drive agentic engine optimization. This is just the beginning with much more to come. Second is our digital configurations and how we bring LoveSac to life online. Our digital transformation continues to bear fruit as we create a more intuitive customer experience and optimize discoverability and quarter one demonstrated continued improvement.

最後，我們正在現代發現中建立競爭優勢。在第一季度，我們投資於可由人工智能（AI）讀取的內容、結構化數據和創作者生態系統，以推動代理引擎優化。這只是一個開始，未來還有更多。第二是我們的數字配置以及我們如何在線上讓 LoveSac 煥發生機。我們的數字轉型繼續結出碩果，創造出更直觀的客户體驗，並優化可發現性，第一季度展示了持續的改善。

E commerce sales for the quarter increased 7.1% year over year supported by growth in traffic and higher average order values enabling us to increase our E. Com penetration by 170 basis points versus last year. As Sean mentioned, Snug continues to illustrate that a digital first platform with simplified value proposition and streamlined assortment can win on lovesac.com in parallel to our more complex platforms that skew towards showroom demonstrations.

本季度電子商務銷售同比增長 7.1%，得益於流量增長和更高的平均訂單價值，使我們能夠將電子商務滲透率提高 170 個基點。正如肖恩提到的，Snug 繼續證明，數字優先的平台，簡化的價值主張和精簡的產品組合能夠在 lovesac.com 上獲勝，與我們更復雜的平台並行，這些平台更傾向於展示廳演示。

Most importantly, we continue to see record levels of web customer satisfaction reinforcing our confidence that our investments are enhancing the customer experience and unlocking demand. Third is our showroom network and it continues to serve as a high impact brand assets that amplify our design for life platforms and anchor our omnichannel advantage. As we scale to 281 locations by the end of quarter one. This fleet continues to deliver compelling returns with one year net cash paybacks and limited cannibalization across markets.

最重要的是，我們繼續看到創紀錄的網絡客户滿意度，增強了我們對投資提升客户體驗和釋放需求的信心。第三是我們的展示廳網絡，它繼續作為高影響力的品牌資產，放大我們的設計生活平台，並鞏固我們的全渠道優勢。到第一季度末，我們的展示廳數量擴大到 281 個。這個網絡繼續帶來可觀的回報，淨現金回收期為一年，並且市場間的互相侵蝕有限。

Showroom net sales increased 0.5% during the quarter despite increasing traffic pressure across the broader category. Importantly, while traffic was pressured, conversion increased year over year and our quote pipeline increased approximately 12%. As I've shared before, we enhanced our performance based compensation program for the field team starting back in quarter four and we see this enabling our growth. And then finally, our partnership model extends our customer acquisition engine beyond our own channels and demonstrates the scalability and efficiency of our model without ceding control of the customer relationship.

儘管整個類別的流量壓力增加，本季度展示廳淨銷售額仍增長 0.5%。重要的是，儘管流量受到壓力，轉化率同比增長，我們的報價管道增加了約 12%。正如我之前分享的，我們從第四季度開始增強了現場團隊的績效基礎薪酬計劃，我們看到這促進了我們的增長。最後，我們的合作伙伴模式將客户獲取引擎擴展到我們自己的渠道之外，展示了我們的模式的可擴展性和效率，同時不放棄對客户關係的控制。

While quarter one performance was impacted by lower Costco pop up shop counts and some promotional timing, we're well underway optimizing this engine. Recent tests focus on show segmentation and cadencing, staffing, model improvements and assortment expansion delivered all encouraging operational trends and margin improvement that gives us the confidence to roll these strategies out further. And of course these customer acquisition engines are merely a means to an end to build long term customer relationships.

儘管第一季度的表現受到 Costco 快閃店數量減少和一些促銷時機的影響，但我們正在積極優化這個引擎。最近的測試集中在展示細分、節奏、人員配置、模型改進和產品組合擴展上，所有這些都帶來了令人鼓舞的運營趨勢和利潤改善，使我們有信心進一步推廣這些策略。當然，這些客户獲取引擎僅僅是建立長期客户關係的手段。

We're laser focused on elevating the experience to match the strengths of our platforms, particularly in fulfilment and the services we provide. Room of choice and Now White glove delivery and assembly pilots continue to perform well and are on track for national expansion this year. Loved by LoveSac our resale platform has built momentum and continues to deliver in line with our expectation and reinforces our circular operations model. Loved by Lovesac, which is now live in 30 states, has seen seven in 10 customers are new to the Lovesac brand, further validating resale as an important entry point to the LoveSac ecosystem.

我們專注於提升體驗，以匹配我們平台的優勢，特別是在履行和我們提供的服務方面。選擇房間和現在的白手套送貨和組裝試點繼續表現良好，並計劃在今年進行全國擴展。Loved by LoveSac，我們的二手平台已經積累了勢頭，並繼續按照我們的預期交付，進一步驗證了我們的循環運營模式。Loved by Lovesac 現在在 30 個州上線，70% 的客户是首次接觸 Lovesac 品牌，進一步驗證了二手銷售作為進入 LoveSac 生態系統的重要切入點。

Furthermore, we expanded the program with incremental products during quarter one, including the reclining seat and snug pivoting then to our key growth enablers. Our advantage supply chain delivered solid operational performance in quarter one with consistent progress in processing, in transit times and on time delivery metrics. Our ongoing network efficiency gains help deliver better customer experience consistency and lower cost to serve, which helped offset some of the external cost pressure we saw in the quarter owing to geopolitical uncertainty in oil and freight inputs.

此外，我們在第一季度擴展了該計劃，增加了包括可調座椅和 Snug 旋轉在內的增量產品。我們的優勢供應鏈在第一季度表現出色，在處理、運輸時間和準時交付指標上持續取得進展。我們持續的網絡效率提升幫助提供更一致的客户體驗和降低服務成本，這有助於抵消我們在本季度因地緣政治不確定性導致的外部成本壓力，包括石油和運輸成本。

Keith will discuss this in greater detail, but let me take a moment to discuss how we're navigating both this increased cost environment as well as the ever evolving tariff landscape. First, with respect to increased oil prices and the impact on our freight costs, our beneficial cargo partnership includes securing capacity at a contractual rate for that capacity. As such, this provides us with meaningful insulation through times like these where spot market prices spike.

基思將對此進行更詳細的討論，但讓我花一點時間談談我們如何應對這一增加的成本環境以及不斷變化的關税形勢。首先，關於油價上漲及其對運輸成本的影響，我們的有利貨物合作伙伴關係包括以合同價格確保運輸能力。因此，這在像這樣的時期為我們提供了有意義的保護，避免現貨市場價格飆升。

In quarter one, we benefited from strong partnerships that helped mitigate the volatility of the spot market and we will leverage these partnerships year to go. As for domestic shipping, including last mile, we have planned for rates based on the trailing 30 day oil prices and then second on tariffs, our assumptions haven't changed and we're actively mitigating risk through our sourcing, diversification, operational discipline and Fuel for Growth cost savings program.

在第一季度，我們受益於強大的合作伙伴關係，幫助減輕現貨市場的波動，我們將在未來一年繼續利用這些合作伙伴關係。至於國內運輸，包括最後一公里，我們已根據過去 30 天的油價計劃了運費；其次，關於關税，我們的假設沒有改變，我們正在通過採購多樣化、運營紀律和增長燃料節省計劃積極降低風險。

Regarding refunds I EAPA tariffs we apply for APA tariff refunds and quarter to date we've received $3.4 million. The amount already received is the only amount that has been contemplated in our guidance due to uncertainty of timing and potential recovery of the remaining balance. Lastly, as Sean shared, we are on track with our onshoring initiative for sactional seats launching later this year with the design enhancements of improved comfort, functionality and ease of assembly, all of which are real value to our customers.

關於退款，即 EAPA 關税，我們申請了 APA 關税退款，截至本季度，我們已收到 340 萬美元。已收到的金額是我們指導中唯一考慮的金額，因為剩餘餘額的時間和潛在回收的不確定性。最後，正如肖恩所分享的，我們的本土化計劃正在按計劃推進，針對分段座椅將在今年晚些時候推出，設計增強了舒適性、功能性和組裝的便利性，所有這些都為我們的客户帶來了真正的價值。

In sum, our supply chain is becoming more efficient, more resilient and better positioned and to support our next phase of growth. And with that, I'll turn the call over to Keith.

總之，我們的供應鏈正在變得更加高效、更具韌性，並且更好地定位以支持我們的下一個增長階段。接下來，我將把電話交給基思。

Keith Signer (Chief Financial Officer)

基思·西格納（首席財務官）

Thanks Mary. Let's jump right on into a quick review of first quarter, followed by our outlook for the rest of fiscal 27 as we begin with performance metrics. Please note that all references to the first quarter refer to fiscal 2027 unless otherwise noted. Net sales decreased 0.2 million or 0.1% to $138.2 million in the first quarter compared to the prior year period. Showroom net sales increased 0.6 million, or 0.6% to 97.1 million in the first quarter compared to the prior year period, driven by the net addition of 14 new showrooms.

謝謝瑪麗。讓我們直接進入第一季度的快速回顧，然後展望 2027 財年的其餘部分，首先關注績效指標。請注意，所有提及第一季度的內容均指 2027 財年，除非另有説明。第一季度淨銷售額較去年同期減少 20 萬美元，下降 0.1%，為 1.382 億美元。展廳淨銷售額較去年同期增加 60 萬美元，增長 0.6%，達到 9710 萬美元，主要得益於新增 14 家展廳。

Internet sales increased 2.4 million, or 7.1% to 35.7 million in the first quarter compared to the prior year period. These were partially offset by a decrease of 1.0% in omnichannel comparable net sales. Other net sales, which include pop up shop sales, shop in shop sales, open box inventory transactions, and the Love Buy LoveSack program, decreased 3.1 million, or 36.3% to 5.5 million in the first quarter compared to the prior year period. The decrease was primarily attributable to the closure of the company's Best Buy shop and shop locations as a result of the discontinuation of its partnership with Best Buy by product category in the first quarter, our sactional net sales decreased 1.4%, Saks net sales decreased 22.5% and our other net sales, which includes our new Snug platform, decorative pillows, blankets and accessories, increased 228.1% over the prior year. Gross margin decreased 160 basis points to 52.1% of net sales in the first quarter of fiscal 27 versus 53.7% in the prior year period, primarily driven by increases of 380 basis points in inbound transportation and tariff costs and 110 basis points in outbound transportation and warehousing costs, partially offset by an increase of 330 basis points in product margin driven by price increases and cost reduction initiatives, partially offset by higher promotional discounting. SGA expense as a percent of net sales was 49.6% in the first quarter of fiscal 27 versus 48.5 in the prior year period. The increased percentage is primarily related to higher payroll and other overhead costs. The increase in selling, general and administrative expense dollars was primarily related to increases of 1.0 million in payroll associated with higher incentive compensation and 0.5 million in other overhead costs.

互聯網銷售額較去年同期增加 240 萬美元，增長 7.1%，達到 3570 萬美元。這部分增幅部分被全渠道可比淨銷售額下降 1.0% 所抵消。其他淨銷售額，包括快閃店銷售、店中店銷售、開箱庫存交易和 Love Buy LoveSack 項目，較去年同期減少 310 萬美元，下降 36.3%，為 550 萬美元。減少主要是由於公司與百思買在產品類別上的合作終止，導致百思買店中店位置的關閉。我們的分區淨銷售額下降 1.4%，Saks 淨銷售額下降 22.5%，而我們的其他淨銷售額，包括新的 Snug 平台、裝飾性枕頭、毛毯和配件，較去年增長 228.1%。第一季度毛利率較去年同期下降 160 個基點，降至淨銷售額的 52.1%，主要是由於入境運輸和關税成本增加 380 個基點，出境運輸和倉儲成本增加 110 個基點，部分被產品毛利率增加 330 個基點所抵消，後者是由於價格上漲和成本削減措施，但也受到更高促銷折扣的影響。銷售、一般和行政費用佔淨銷售額的比例在 2027 財年第一季度為 49.6%，而去年同期為 48.5%。這一比例的增加主要與更高的工資和其他間接費用有關。銷售、一般和行政費用的增加主要與激勵補償相關的工資增加 100 萬美元和其他間接費用增加 50 萬美元有關。

Rent increased by 0.3 million related to 0.4 million increase in rent expense from our net addition of 14 showrooms, partially offset by a 0.1 million reduction in percentage rent. Advertising and marketing expenses decreased 2.0 million or 10.7% to 16.6 million for the first quarter compared to the prior year period. Advertising and Marketing expenses were 12.0% of net sales in the first quarter as compared to 13.4% of net sales in the prior year period.

租金增加 30 萬美元，主要與新增 14 家展廳的 40 萬美元租金支出增加有關，部分被 10 萬美元的百分比租金減少所抵消。廣告和營銷費用較去年同期減少 200 萬美元，下降 10.7%，為 1660 萬美元。第一季度廣告和營銷費用佔淨銷售額的 12.0%，而去年同期為 13.4%。

Operating loss for the quarter was 17.4 million compared to 15.0 million in the first quarter of last year driven by the factors we just discussed. Before we turn our attention to Net loss, net loss per common share and adjusted EBITDA, please refer to the terminology and reconciliation between each of our adjusted metrics and their most directly comparable GAAP (Generally Accepted Accounting Principles) measurements in our earnings release issued earlier this morning.

本季度的經營虧損為 1740 萬美元，而去年同期為 1500 萬美元，主要受我們剛剛討論的因素影響。在我們轉向淨虧損、每股普通股淨虧損和調整後 EBITDA 之前，請參考我們今天早些時候發佈的財報中關於每個調整後指標與其最直接可比的 GAAP（公認會計原則）測量之間的術語和調整。

Net loss for the quarter was 11.1 million or negative $0.76 per common share compared to net loss of 10.8 million or negative $0.73 per common share in the prior year period. During the first quarter we recorded an income tax benefit of 5.6 million as compared to 3.8 million in the prior year period. The increase in our effective tax rate was primarily driven by the impact of permanent differences associated with employee benefit and equity programs.

本季度淨虧損為 1110 萬美元，每股普通股淨虧損為負 0.76 美元，而去年同期淨虧損為 1080 萬美元，每股普通股淨虧損為負 0.73 美元。在第一季度，我們記錄了 560 萬美元的所得税收益，而去年同期為 380 萬美元。我們有效税率的上升主要是由於與員工福利和股權計劃相關的永久性差異的影響。

Adjusted EBITDA loss for the quarter was 10.5 million as compared to 8.4 million in the prior year period. Turning to our balance sheet, we ended the first quarter with a healthy balance sheet that provides substantial flexibility for lovesac to invest in growth to enhance long term value creation for shareholders. We reported $57.0 million in cash and cash equivalents while retaining $35 million in committed availability and no borrowings on our recently amended credit facility.

本季度調整後 EBITDA 虧損為 1050 萬美元，而去年同期為 840 萬美元。轉向我們的資產負債表，我們在第一季度結束時擁有健康的資產負債表，為 Lovesac 提供了 substantial flexibility，以投資於增長，增強長期價值創造。我們報告現金及現金等價物為 5700 萬美元，同時保留 3500 萬美元的承諾可用額度，並且在我們最近修訂的信貸設施上沒有借款。

We feel good about both the quality and quantity of our inventory and our ability to maintain industry leading in stock positions and delivery times. We anticipate modest increases in inventory balance during fiscal 27 versus the prior year to account for product and platform expansion. Second, our strategy is to allocate excess capital opportunistically with a focus on long term value creation and enhancing returns on capital to that end. In the first quarter we repurchased 2.4 million of our common stock outstanding, leaving substantial dry powder available as reflected by approximately 51.7 million remaining under our existing share repurchase authorization. Please refer to our earnings press release for other details on our first quarter financial performance. So now our outlook. I'm sure I sound a little like a broken record, but it's honestly the case that we've seen relatively consistent low single digit category declines continuing. Some weeks improve while others fall short, which seems the reality we're in. From a macroeconomic perspective, we're planning for this to remain the case throughout the remainder of the year while we strive for more.

我們對庫存的質量和數量以及維持行業領先的庫存水平和交貨時間的能力感到滿意。我們預計在 2027 財年期間，庫存餘額將適度增加，以應對產品和平台的擴展。其次，我們的戰略是有選擇地分配多餘資本，專注於長期價值創造和提高資本回報。為此，在第一季度，我們回購了 240 萬美元的普通股，留下了 substantial dry powder，現有的股票回購授權下約有 5170 萬美元可用。有關我們第一季度財務表現的其他細節，請參考我們的財報新聞稿。現在談談我們的展望。我知道我聽起來有點像破紀錄的唱片，但老實説，我們看到相對一致的低個位數類別下降持續存在。一些周有所改善，而另一些則未能達到預期，這似乎是我們所處的現實。從宏觀經濟的角度來看，我們計劃在今年剩餘時間內保持這種情況，同時努力爭取更多。

We were pleased to have demand up a couple of percent in the fiscal first quarter and to hold revenues at flattish, both better than the category recall. As we discussed, last quarter revenues for first quarter were slightly behind demand owing to the expansion of our white glove delivery option. Near the end of the quarter, we've seen these orders being scheduled slightly further out than our normal one to two weeks for traditional fast and free delivery, creating a temporary gap.

我們很高興在 2027 財年第一季度需求上升了幾個百分點，並且收入保持平穩，這兩者都優於類別回顧。正如我們所討論的，上一季度第一季度的收入略低於需求，原因是我們白手套送貨選項的擴展。在季度末，我們看到這些訂單的安排時間略長於我們正常的一到兩週的傳統快速免費送貨，造成了暫時的差距。

We anticipate this dynamic may continue into the fiscal second quarter as we expand the offerings even more broadly, but we see this as a long term positive since the customer feedback has been extremely positive and it opens up sales that wouldn't have occurred had we noticed the service. There are a few other items to note regarding what's included in our fiscal second quarter and full year guidance. First, we've adjusted our plans to reflect our latest outlook for costs related to cogs and logistics as a result of inflation in materials, energy and transportation.

我們預計這種動態可能會持續到財年的第二季度，因為我們將更廣泛地擴展產品線，但我們認為這是一個長期的積極因素，因為客户反饋非常積極，這為我們打開了銷售機會，如果我們沒有注意到這項服務，這些銷售將不會發生。關於我們財年第二季度和全年指導中包含的內容，還有一些其他事項需要注意。首先，由於材料、能源和運輸的通貨膨脹，我們調整了計劃，以反映我們對成本（包括銷售成本和物流）的最新展望。

Second, we factored the latest backdrop for tariffs for the remainder of the year and aren't speculating as to incremental changes that might arise. Third, as it pertains to tariff refunds, we are including solely those that we've already received and are not including potential future recoveries. Please note that this means the fiscal second quarter and full year include approximately 3.6 million of refunds collected, which benefits gross margins and includes a small amount of interest in our interest and other income line items.

其次，我們考慮了今年剩餘時間的關税最新背景，並且不對可能出現的增量變化進行猜測。第三，關於關税退款，我們僅包括已經收到的退款，不包括潛在的未來回收。請注意，這意味着財年第二季度和全年包括大約 360 萬美元的已收退款，這有利於毛利率，並在我們的利息和其他收入項目中包含少量利息。

Specifically, for the full year, we estimate net sales of 700 to 740 million. We expect adjusted EBITDA between 35 and 46 million. This includes gross margins of 56 to 57%, advertising and marketing of approximately 12% as a percent of net sales and SGA of approximately 40 to 41% as a percent of net sales. We estimate net income to be between 5 and $12 million. We estimate diluted Income for common share in the range of $0.34 to $0.81 and approximately 14.8 million estimated diluted weighted average shares outstanding.

具體來説，對於全年，我們預計淨銷售額在 7 億到 7.4 億美元之間。我們預計調整後的息税折舊攤銷前利潤（EBITDA）在 3500 萬到 4600 萬美元之間。這包括 56% 到 57% 的毛利率，廣告和營銷費用約佔淨銷售額的 12%，銷售、一般和管理費用（SGA）約佔淨銷售額的 40% 到 41%。我們預計淨收入在 500 萬到 1200 萬美元之間。我們預計每股攤薄收益在 0.34 美元到 0.81 美元之間，預計攤薄加權平均流通股約為 1480 萬股。

We estimate a full year effective tax rate of 39 to 40% at the midpoint of the range, though this can vary widely depending on where pretax income ultimately ends up across the range. Within our outlook for the second quarter, we estimate net sales of 157 to $166 million, representing modest revenue growth. At the midpoint, we expect adjusted EBITDA between negative 4 million and positive 2 million. This includes gross margins of 57.5 to 58.5%, advertising and marketing of approximately 14.5% as a percent of net sales and SGA of 44.5 to 46.5 as a percent of net sales.

我們預計全年有效税率在 39% 到 40% 之間，處於區間的中點，儘管這可能會根據税前收入最終落在區間的不同位置而有很大變化。在我們對第二季度的展望中，我們預計淨銷售額在 1.57 億到 1.66 億美元之間，代表適度的收入增長。在中點上，我們預計調整後的 EBITDA 在負 400 萬到正 200 萬美元之間。這包括 57.5% 到 58.5% 的毛利率，廣告和營銷費用約佔淨銷售額的 14.5%，SGA 約佔淨銷售額的 44.5% 到 46.5%。

We estimate net loss to be 3 million to 7 million. We estimate basic loss per common share to be $0.20 to $0.48 with 14.7 million basic weighted average shares outstanding. In summary, we're balancing prudence and efficiency with our belief it's essential to stay focused on the big picture. That's the massive long term opportunity for tremendous value creation for all Lovesac stakeholders. We're building the Lovesac brand and investing in new product innovation that spans style, function and new categories to support a powerful multi year secular growth outlook with macro upside exposure as icing on the cake.

我們預計淨虧損在 300 萬到 700 萬美元之間。我們預計每股基本虧損在 0.20 美元到 0.48 美元之間，基本加權平均流通股為 1470 萬股。總之，我們在審慎和效率之間取得平衡，認為專注於大局至關重要。這是為所有 Lovesac 利益相關者創造巨大價值的長期機會。我們正在建立 Lovesac 品牌，並投資於跨越風格、功能和新類別的新產品創新，以支持強勁的多年持續增長前景，並在宏觀經濟上有額外的上行空間。

With that, over to you operator.

那麼，接下來請您，操作員。

OPERATOR

操作員

Thank you. We'll now be conducting a question and answer session. We ask that you please limit yourself to one question and one follow up. If you'd like to ask a question, please press Star one on your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. And our first question is from the line of Thomas Forte with Maxim Group. Please proceed with your questions. Great, thanks.

謝謝。我們現在將進行問答環節。請您限制自己提問一個問題和一個後續問題。如果您想提問，請在電話鍵盤上按星號 1，確認音調將指示您的線路在提問隊列中。如果您想將問題從隊列中移除，可以按星號 2。對於使用揚聲器設備的參與者，可能需要在按星號鍵之前拿起聽筒。謝謝。我們的第一個問題來自 Maxim Group 的 Thomas Forte。請繼續提問。非常感謝。

Thomas Forte (Equity Analyst)

Thomas Forte（股票分析師）

So Sean, Mary and Keith, thanks for taking my questions. I have one question and one follow up. So Sean, high level Mary used the words AI. So I'm going to blame Mary for giving me the opportunity to ask this question. Can you think about agentic commerce in the category and what LoveSac is doing to capitalize on that opportunity?

所以 Sean、Mary 和 Keith，感謝你們回答我的問題。我有一個問題和一個後續問題。Sean，高層次上，Mary 使用了 AI 這個詞。所以我要把這個機會歸咎於 Mary。你能否考慮一下代理商業（agentic commerce）這一類別，以及 Lovesac 正在做些什麼來利用這個機會？

Mary Fox (President)

Mary Fox（總裁）

Thank you Tom. I appreciate the question. Yeah, I mean, I think obviously Thomas, we have seen a couple of things, you know, a lot more of search that customers are considering as they really think about a very significant purchase is Coming through large language models (LLMs). So the teams have been really working to ensure all of our content is readable. You know, with large language models (LLMs), there's often a lot more words that help kind of describe what people are looking for versus traditional Google search.

謝謝你，Tom。我很感激這個問題。是的，我的意思是，顯然 Thomas，我們已經看到了一些事情，你知道，客户在考慮非常重要的購買時，搜索量明顯增加，主要是通過大型語言模型（LLMs）進行的。因此，團隊一直在努力確保我們所有的內容都是可讀的。你知道，使用大型語言模型（LLMs）時，通常會有更多的詞彙來幫助描述人們正在尋找的東西，而不是傳統的谷歌搜索。

So the team have been doing a lot of work around AI readability and kind of getting all of that structured in place. I think the second piece is then we think about working and piloting, for example, ChatGPT (Chat Generative Pre-trained Transformer) in terms of ads and the ability to be able to click through from that search to take us straight through to our site. And then, as I had shared, because everything is fully connected, is we've done a lot of work about how do we actually improve our site experience.

所以團隊在 AI 可讀性方面做了很多工作，並將所有這些結構化。我認為第二個方面是，我們考慮到例如在廣告中使用和試點 ChatGPT（聊天生成預訓練變換器），以及從搜索中直接點擊進入我們網站的能力。正如我所分享的，由於一切都是完全連接的，我們在如何改善我們的網站體驗方面做了很多工作。

So the searchability becomes a lot less friction and enables them to be able to drive conversion a lot faster. So a lot of progress the team have been doing on the site. I think that's a lot of why the performance in Q1 was so strong. And we're seeing an uptick in terms of, you know, our share of voice on LLM. So, you know, more to come. It's just really kind of started, Tom, but we see a lot of opportunity here.

因此，搜索的便利性大大減少了摩擦，使他們能夠更快地推動轉化。團隊在網站上取得了很多進展。我認為這就是第一季度表現如此強勁的原因之一。我們在大型語言模型（LLM）上的聲音份額也在上升。所以，更多的機會還在後面。Tom，這只是剛剛開始，但我們看到這裏有很多機會。

Thomas Forte (Equity Analyst)

Thomas Forte（股票分析師）

Thank you, Mary. That was a great answer that I appreciate very much. All right, so here I'm a little confused. So when I think about Love by Lovesac and I think about performance in the quarter where you had the strength in assortments priced at 6,000 and higher, and I think about the potential for your recommerce effort with Love by LoveSac to give you countercyclicality. So how are consumers using Love by LoveSac? Are they using it as a way to engage with the brand and save money?

謝謝你，Mary。這個回答非常好，我非常感激。那麼，我有點困惑。當我想到 Lovesac 的 Love by Lovesac 時，我想到你們在季度中表現強勁的價格在 6000 美元及以上的產品組合，以及你們的再商業化努力（recommerce effort）可能帶來的逆週期性。那麼，消費者是如何使用 Love by Lovesac 的？他們是將其作為與品牌互動和節省開支的一種方式嗎？

Are they help me understand how Love by Lovesack, you did a great job of explaining the more than 6k and the less than 6k, but I'm confused in the Love by Lovesac part.

他們能幫我理解 Love by Lovesack 嗎？你在解釋超過 6k 和少於 6k 的部分時做得很好，但我對 Love by Lovesac 的部分感到困惑。

Mary Fox (President)

瑪麗·福克斯（總裁）

Yeah, no, it's a great question, Tom. And obviously, you know, having studied us for so long, Love by Lovesac really just started rolling out this year. So we're in 30 states. We really haven't switched on marketing to tell people a lot more about it because we've been really still working through making sure the processes from searchability on Love by Love, sacrificing through to the transaction and shipping out and so forth. You know that you can really have a lot more volume.

是的，沒錯，這是個好問題，湯姆。顯然，你知道，經過這麼長時間的研究，Love by Lovesac 今年才開始推出。所以我們在 30 個州。我們實際上還沒有開啓營銷來告訴人們更多關於它的信息，因為我們仍在努力確保從 Love by Love 的可搜索性到交易和發貨等流程的順利進行。你知道，你可以有更多的交易量。

So I think that's partly on us that we want to make sure we can sustain a great experience and then build it out and, you know, and I Think as people learn more and more about it then to your point, there's an opportunity and as I indicated earlier, we see a lot of opportunity. There's a lot of work the teams are doing about how to tap into that lower size transactions. So you're spot on. That's an opportunity. So expect to see more from us as that builds out.

所以我認為這部分是我們的責任，我們希望確保能夠維持良好的體驗，然後再進行擴展。你知道，隨着人們對它瞭解得越來越多，正如你所説，這裏有機會，正如我之前提到的，我們看到很多機會。團隊正在努力研究如何利用那些較小的交易規模。所以你説得對。這是一個機會。期待我們在這方面的更多進展。

Thomas Forte (Equity Analyst)

托馬斯·福特（股票分析師）

Thank you, Mary. Thank you, Tom.

謝謝你，瑪麗。謝謝你，湯姆。

OPERATOR

操作員

Our next questions are from the line of Brian Nagel with Oppenheimer. Please receive your question.

接下來的問題來自 Oppenheimer 的布萊恩·納戈爾。請提出你的問題。

Brian Nagel

布萊恩·納戈爾

Good morning. Thanks for taking my questions. So the first question I want to ask been more near term, but you have a lot of moving pieces here with sales and we talked a lot about the choppy macro backdrop. But if you look at the Q1 results, is it fair to assume that the business was slower, there was a slowing from what we saw, let's just say the second half of last fiscal year.

早上好。感謝你們回答我的問題。首先我想問的是更短期的事情，但你們在銷售方面有很多變動因素，我們談到了動盪的宏觀背景。但如果你看看第一季度的結果，是否可以合理地假設業務有所放緩，較我們看到的上一個財政年度下半年的情況有所減弱？

Keith Signer (Chief Financial Officer)

基思·西格納（首席財務官）

Hey Brian. Yeah, Keith. You take it? Yep. If you want to jump in. It's a little bit of a difficult question to answer. I think, you know, a number of factors are at play. I think to start with what those moving pieces are, you know, the macro uncertainty within sort of that like let's call it the upper middle class that we've talked about was, was definitely clear to us. And you know, and when we talk about seeing strength above 6,000, I mean it gets even stronger when you get above 8,000, get above 10,000.

嘿，布萊恩。是的，基思。你來回答嗎？如果你想插入一下。這是一個有點難以回答的問題。我認為，有許多因素在起作用。我認為，首先要了解這些變動因素是什麼，你知道，宏觀不確定性在我們所説的中上層階級中是顯而易見的。當我們談到看到超過 6,000 的強勁表現時，超過 8,000 和 10,000 的表現會更強。

And you know, I think what we're seeing there is the very high end is doing very well. Right. I think that what we started to do during this quarter was to introduce new strategies to increase attractiveness of opening price points to try to rekindle some of that transaction growth below 6,000. You saw us running some promotions around our Rain Chenille fabric, which is a fantastic fabric. We liked what we saw from that. You're going to see more expansions of that coming not only in 2Q but as we get into 3Q.

你知道，我認為我們在這個季度開始引入新策略，以提高開盤價的吸引力，試圖重新點燃 6,000 以下的交易增長。你看到我們圍繞我們的 Rain Chenille 面料進行了一些促銷，這是一種很棒的面料。我們對看到的結果感到滿意。你將在第二季度以及進入第三季度時看到更多的擴展。

And I think what you're seeing is hopefully going to be improvement in that trend as well. So Mary mentioned that in her comments. You're going to see a lot more coming on that as we try to really bifurcate our marketing and promotional approaches to maintain strength at the high end where the demand is strong, but increase the opening price point attractiveness. We did have some shifts in timing in relation to our spend as we're experimenting with a few new of these initiatives as Mary talked about.

我認為你看到的趨勢也希望會有所改善。所以瑪麗在她的評論中提到過這一點。你將看到更多的進展，因為我們試圖真正區分我們的營銷和促銷策略，以維持高端的強勁需求，同時提高開盤價的吸引力。我們在支出方面確實有一些時機的變化，因為我們正在嘗試一些新的舉措，正如瑪麗所提到的。

So we did have a lighter spend in Q1 than the run rate. That spend should step back to more Normal rates for the full year. That's part of this as well. And we're about to have a whole bunch of new product news, so nothing surprising. And even to go back to, like where we gave guidance for the quarter, we came in at the high end of the range from what we had originally provided. So I think generally speaking, giving all of the moving pieces, because you're right, there are a lot of moving pieces.

所以我們在第一季度的支出比正常水平要少。這部分也是如此。我們預計全年支出將恢復到更正常的水平。我們即將有一系列新的產品消息，所以沒有什麼令人驚訝的。甚至回到我們為本季度提供的指導，我們的結果達到了我們最初提供的範圍的高端。因此，我認為一般來説，考慮到所有的變動因素，因為你説得對，確實有很多變動因素。

I think the quarter ended up in a good spot for us and that sets us up for, hopefully, momentum in the second half.

我認為這一季度對我們來説結束得很好，這為我們下半年的勢頭奠定了基礎。

Mary Fox (President)

瑪麗·福克斯（總裁）

And, Brian, maybe if I can just add one other point to what Keith shared. So, you know, Keith had talked earlier, you know, our demand outpace net sales because we are building out our paid services. So if you actually look at the demand growth relative to the revenue growth in Q4, it's pretty much in line, but obviously with a bit of a lag as customers are selecting their delivery and installation dates, then you are seeing that bit of a difference in the delta of demand and revenue.

布萊恩，也許我可以補充一下基思分享的另一點。你知道，基思之前提到過，我們的需求超出了淨銷售額，因為我們正在擴展我們的付費服務。所以如果你實際上查看第四季度的需求增長與收入增長的關係，它基本上是相符的，但顯然有一些滯後，因為客户在選擇他們的交付和安裝日期時，你會看到需求和收入之間的差異。

Brian Nagel

布萊恩·納戈爾

No, that's helpful. I appreciate all that. Then the second question I want to ask is on tariff refunds. So we're starting to hear, I guess, more of this throughout the consumer sector, broadly. So you've started to receive these refunds. So I guess the questions I want to ask is, is there any insight into how much more you could receive and the timing of that and then probably more importantly, how should we think about the ways in which LoveSac plans to utilize these refunds?

這很有幫助。我很感激這一切。然後我想問的第二個問題是關於關税退款的。所以我們開始在整個消費行業聽到更多關於這個的消息。所以你們開始收到這些退款。我想問的問題是，是否有關於你們可能收到多少以及時間安排的見解，然後更重要的是，我們應該如何看待 LoveSac 計劃如何利用這些退款？

Keith Signer (Chief Financial Officer)

基思·西格納（首席財務官）

All right, I'll start, and then I'll hand it over to Mary. So to give you some context, we applied for and were accepted for 20, meaning our refund application was accepted for $20.8 million of total refunds. We received the original 3.4 at the very beginning of the opening of the window. And it's been in pause ever why we're taking this approach. So as it relates to timing for the remainder, we don't know. You know, I think that's why we've taken the approach we have and consider it.

好的，我先開始，然後把話交給瑪麗。為了給你一些背景，我們申請並獲得了 20，意味着我們的退款申請獲得了 2080 萬美元的總退款。我們在窗口開放的最初階段收到了 340 萬美元。此後一直處於暫停狀態，我們採取了這種方式。因此，關於剩餘部分的時間安排，我們不知道。你知道，我認為這就是我們採取這種方式的原因。

You know, we'll include it and report on it as it's received. You know, so fingers crossed that this comes. We would love to have that back. I think, Mary, if you want to talk about some of what our plans are for that, I'll kick it over to you.

你知道，我們會在收到時包含並報告它。你知道，希望這能順利到來。我們希望能拿回這些。瑪麗，如果你想談談我們對此的計劃，我就把話交給你。

Mary Fox (President)

瑪麗·福克斯（總裁）

Yeah, sure. Thank you. So I think, you know, obviously, Brian, we will always plan on what we have in our bank account because there's still a lot of uncertainty around, as Keith said, timing, but also actually receiving the rest of the refunds, the team are actively in the customs portal, so your guess is as good as ours in terms of when it will come in, but some indications that it could be in the next month or so. And then I think in terms of how we would think through in terms of that benefit, should everything come through. You know, we've worked through a number of scenarios to really think in terms of what we would do with that benefit. Some could support profitability, some could be around strategic priorities. And we'll also learn a lot more in terms of how, you know, we would treat this given if there's other considerations.

好的，當然。謝謝你。所以我認為，顯然，Brian，我們將始終根據我們銀行賬户中的資金進行規劃，因為正如 Keith 所説，時機仍然存在很多不確定性，但實際上還要收到其餘的退款，團隊正在積極使用海關門户，所以在何時到賬方面，你的猜測和我們的差不多，但有一些跡象表明可能在下個月左右到來。然後我認為在考慮到這一利益時，如果一切都能順利進行，我們已經考慮了多種情景，真正思考我們將如何利用這一利益。有些可能支持盈利能力，有些可能與戰略優先事項相關。我們還將學習到更多關於如何處理這一點的信息，考慮到是否還有其他因素。

So we don't want to count on it yet. But obviously the team has done an amazing job getting in for those applications and receiving them. So we'll share more with you as we get those realized.

所以我們還不想依賴於它。但顯然，團隊在申請和接收方面做得非常出色。所以當我們實現這些時，會與您分享更多信息。

OPERATOR

運營商

Very helpful, thank you. The next questions are from the line of Maria Rips with canaccord Genuity. Please receive your question.

非常有幫助，謝謝。接下來的問題來自 Canaccord Genuity 的 Maria Rips。請提出您的問題。

Maria Rips (Equity Analyst)

Maria Rips（股票分析師）

Great. Good morning and thanks for taking my questions. Maybe just to follow up on the last question, can you maybe just talk a little bit about any changes in consumer behavior sort of this last quarter? I know you talked about demand below that 6,000 level, but anything incremental you would highlight in terms of maybe configuration mix, financing attached response to promotions. I guess more broadly, has the consumer you're seeing in May and June gotten any better or bearish versus what you saw in February?

很好。早上好，感謝您回答我的問題。也許只是想跟進上一個問題，您能否談談在過去一個季度中消費者行為的任何變化？我知道您提到需求低於 6000 的水平，但您是否有任何增量的內容可以強調，比如配置組合、融資附加響應促銷。我想更廣泛地説，您在 5 月和 6 月看到的消費者情況是否比 2 月有所改善或變得更加悲觀？

Mary Fox (President)

Mary Fox（總裁）

Yeah, Maria, thank you for the question. So I mean very much similar to what we have seen and what we've been sharing. So continued acceleration on the larger size transactions and a lot of strong performance there as well as also the value added additions such as recliner LoveSoft and storage seat, just to name a few. So very much that trend is continuing and still seeing that softness in the smaller size transactions. So really nothing new for that.

是的，Maria，謝謝你的提問。所以我認為與我們所看到的和分享的非常相似。大型交易的持續加速，以及在那方面的強勁表現，還有一些增值的附加產品，比如可調節的 LoveSoft 和儲物座椅，僅舉幾例。因此，這一趨勢仍在繼續，並且在小型交易中仍然看到疲軟。所以在這方面沒有什麼新情況。

I think as we've always shared, you know, customers are more focused on timing so as we start an event it can be a little bit quieter in terms of their conversion and then as the event gets to a close then you get a lot of activity. So you're just seeing definitely that bell curve moving out. I think Keith, you know we look at obviously at things like financing and we're really not seeing an uptick on uses of financing so really not driving there.

我認為，正如我們一直所分享的，客户更加關注時機，因此當我們開始一個活動時，他們的轉化可能會稍微安靜一些，然後隨着活動的結束，活動會變得非常活躍。所以你確實看到這個鐘形曲線在延伸。我認為 Keith，你知道我們當然會關注融資等方面，但我們並沒有看到融資使用的上升，因此在這方面並沒有推動。

So I think you know our job to do as we shared is continue to accelerate on what's working as we see our consumers responding and then also doing some more work in the of key shared on that smaller size transaction. So that's really kind of, Maria, what we are seeing up until now.

所以我認為，正如我們所分享的，我們的工作是繼續加速那些有效的方面，因為我們看到消費者的反應，然後在小型交易方面做更多的工作。所以這就是，Maria，到目前為止我們所看到的情況。

Shawn Nelson (Chief Executive Officer)

Shawn Nelson（首席執行官）

Got it. That's very helpful, Mary. And then can you maybe give us a little bit more color on the domestic production that's starting this summer? I guess. How much of your production cost base does that initially cover? What's sort of the realistic time timeline to scale that volume? And then how should we think about sort of the cost differential versus importing, sort of in the rollout phase, but also at scale? Yeah, thanks, Maria. This is Sean responding. We're very excited about onshoring. You know, I think all of us are living on the same planet and observe all of the volatility that, you know, this endeavor can hopefully help us mitigate on top of, of course, the sustainability considerations, on top of cost considerations, which at the outset, our goal is to come in flat. Right. Manufacturing, I'll call it like for like, but I'll come back to that.

明白了。這非常有幫助，Mary。然後您能否給我們更多關於今年夏天開始的國內生產的細節？我想知道這最初覆蓋了您生產成本基礎的多少？在規模化生產方面，現實的時間表是什麼？然後我們應該如何看待在推廣階段以及在規模化時的成本差異？謝謝，Maria。這是 Sean 在回應。我們對本土化生產感到非常興奮。你知道，我認為我們都生活在同一個星球上，觀察到所有的波動，這一努力希望能幫助我們減輕這些波動，當然還有可持續性考慮，以及成本考慮，最初我們的目標是保持平穩。對吧。製造，我稱之為同類產品，但我會再回到這一點。

It's not like for like manufacturing. Like for like in the United States versus say Vietnam, Asia is a very difficult proposition. And in fact, it was not achievable on a true like for like basis. Meaning we're not just making the same product out of wood here in the United States. We've taken a whole new design approach to the product. Designing it for manufacturing, designing it for automation. And yes, we're on track to begin that, you know, the early stages of that manufacturing late this summer. And so we're very excited about that. It's going to take like any massive undertaking, it's going to take a period of time to come to scale. And so we, we are not planning any material pickup in margin or even offsets to this supply chain in this fiscal year.

這並不是同類產品的製造。在美國與越南等地的同類產品相比，這是一個非常困難的命題。事實上，在真正的同類產品基礎上，這是不可實現的。意味着我們不僅僅是在美國用木材製造相同的產品。我們對產品採取了全新的設計方法。為製造設計，為自動化設計。是的，我們按計劃將在今年夏末開始這一製造的早期階段。所以我們對此非常興奮。這將像任何大型項目一樣，需要一段時間才能達到規模。因此，我們並不計劃在本財政年度內實現任何實質性的利潤提升，甚至沒有對這一供應鏈的抵消。

And even though we will see product rolling through and selling through in the second half of the year, it's still got a long way to scale. We believe that we'll have the capacity and the opportunity in the future to make the consideration of, for instance, eliminating our overseas manufacturing for those SKUs. And again, I'll remind us that we're talking about in the, in the early stages of this sectional seats. But we're leaving our options open.

即使我們會看到產品在下半年流入並銷售，仍然需要很長時間才能達到規模。我們相信未來會有能力和機會考慮，例如，消除我們對這些 SKU 的海外製造。再一次，我提醒大家，我們正在談論的是這一部分座椅的早期階段。但我們會保持我們的選擇開放。

You know, in a volatile world, optionality is key, redundancy is key, and it's served us well as we've seen manufacturing ebb and flow between the various countries that we operate in in Southeast Asia and in Asia more broadly. So, you know, no specifics other than those basic outline. Those basic outline factors. As we move into this endeavor, we're really excited about it and I think as we look, we've spun up a lot of new manufacturing operations as we've hopped from country to country through all of this volatility. And what we've seen is that there's always opportunity to do better with time as we observe the manufacturing process, work with our partners to trim costs, revise the product, revise supply chains and find ways of making it more efficient.

在一個動盪的世界中，選擇性是關鍵，冗餘是關鍵，隨着我們看到製造在我們在東南亞和更廣泛的亞洲運營的各個國家之間起伏，這對我們來説是非常有利的。所以，除了這些基本的概述因素之外，沒有具體的內容。隨着我們進入這一努力，我們對此感到非常興奮，我認為隨着我們在所有這些波動中從一個國家跳到另一個國家，我們啓動了許多新的製造操作。我們看到，隨着時間的推移，總是有機會做得更好，因為我們觀察製造過程，與我們的合作伙伴合作以降低成本，修訂產品，修訂供應鏈，並找到更高效的方式。

So we expect the same here. In fact, in this operation, we're more integrally involved, obviously than our typical arrangement with partners overseas. But we will not own the factory, we will not operate the factory. We're not interested in doing that fundamentally as a business. And look, we view so much of this as upside to the business and frankly, another moat around LoveSac. Lastly, I'll just remind us that we're also talking about not just a product that's been redesigned for manufacturing, but what I'd call a better product. It's going to have features and benefits that the current sactional seats do not offer. They're very cool, they're very meaningful. There will be new patents and intellectual property protections associated with that. And we're just super excited about it.

所以我們在這裏也期待同樣的情況。事實上，在這項操作中，我們顯然比與海外合作伙伴的典型安排更深入地參與其中。但我們不會擁有工廠，也不會運營工廠。我們根本不想在這方面作為一項業務進行操作。我們認為這對業務來説是一個巨大的上行空間，坦率地説，這也是 LoveSac 的另一個護城河。最後，我想提醒大家，我們不僅在談論一個為製造而重新設計的產品，而是我所稱之為更好的產品。它將具備當前模塊化座椅所不具備的功能和優勢。它們非常酷，非常有意義。將會有新的專利和知識產權保護與之相關。我們對此感到非常興奮。

OPERATOR

運營商

Our next question is from the line of Eric Delerie with Craig Hallam. Please receive your question.

下一個問題來自 Craig Hallam 的 Eric Delerie。請提出您的問題。

Eric Delerie (Equity Analyst)

Eric Delerie（股票分析師）

Great. Thanks for taking my questions and congrats on the continued progress with challenging macro backdrop here. First for me, just a clarifying question around the difference in the behavior that you're seeing in transactions below and above 6,000. So there's basically a natural mix shift going on right now as transactions above 6,000 are growing very robustly. I think you said mid double digit. Is your approach here to deliberately accelerate or deliberately slow that mix change or are you kind of mix agnostic here and you're of course just trying to grow both buckets. Just looking to kind of clarify your approach to this bifurcation that you're seeing.

很好。感謝您回答我的問題，並祝賀在這個具有挑戰性的宏觀背景下取得的持續進展。首先，我想澄清一下您在 6,000 以下和以上的交易行為差異。實際上，目前正在發生自然的混合轉變，因為 6,000 以上的交易正在非常強勁地增長。我想您説過是中雙位數。您在這裏的做法是故意加速還是故意放慢這種混合變化，還是您對此持中立態度，當然只是想同時增長這兩個部分。只是想澄清一下您對這種分化的看法。

Mary Fox (President)

Mary Fox（總裁）

I think, Eric, you know us, we're very competitive and we want to win. So we will be very deliberate in accelerating all opportunities and we see customers really responding. So 100% continue to drive that and accelerate it. But as Keith said earlier, you know, there's a huge opportunity for us as we think through in terms of recapturing some of those customers at the under 6,000 transaction. We see it in quote growth, you know that they're there, but they're just taking longer to be able to convert. So there's more initiatives that are coming this year that we'll share more on the next earnings call that will enable us really to tap into that. So, you know, you can expect us to try and drive both.

我想，Eric，您瞭解我們，我們非常有競爭力，我們想要勝利。因此，我們會非常有意識地加速所有機會，我們看到客户的反應非常積極。所以我們會繼續推動並加速這一點。但正如 Keith 之前所説的，我們認為在 6,000 以下的交易中重新吸引一些客户是一個巨大的機會。我們在報價增長中看到了這一點，您知道他們在那裏，但他們只是需要更長的時間才能轉化。因此，今年會有更多的舉措，我們將在下次財報電話會議上分享更多信息，這將使我們能夠真正利用這一點。所以，您可以期待我們努力推動這兩個部分。

Eric Delerie (Equity Analyst)

Eric Delerie（股票分析師）

Awesome. That's helpful. And then just in terms of the marketing engine improvements, I mean, it seems like this is really starting to flow through the P and L in the past couple quarters. Could you maybe give us just a couple more examples of like, you know, what you've done already, Whether this is more of like a top of funnel traffic generation focused or more conversion focused, what maybe has yet to make a material impact so far and how, if at all, does this tie into your sort of fabricated approach with these transactions you're seeing? Thank you.

太好了。這很有幫助。然後關於營銷引擎的改進，我的意思是，似乎在過去幾個季度中，這真的開始在損益表中顯現出來。您能否再給我們幾個例子，比如您已經做了什麼？這是否更多地集中在漏斗頂部的流量生成，還是更側重於轉化？到目前為止，哪些方面尚未產生實質性影響？如果有的話，這與您在這些交易中看到的製造方法有什麼關係？謝謝。

Mary Fox (President)

Mary Fox（總裁）

Yeah, great question. Thank you, Eric. So I think as we've shared, the continued pivot for us was around moving to this paid, earned, owned operating model, really driving out the stronger unity and economics that you referenced first. That's around optimizing media mix and moving out of much more of a traditional linear TV digital social. First investment teams have done a great job around building a lot more creator content that helps build the equity in the brand. So I mentioned earlier the Here for Life campaign that really helps build brand equity at the top of the funnel and we're seeing a lot of strength there. We're seeing an uptick in brand health. You know, search dynamics are doing really well.

是的，好的問題。謝謝你，Eric。正如我們所分享的，我們的持續轉變是圍繞着轉向這種付費、賺取和擁有的運營模式，真正推動您首先提到的更強的統一性和經濟性。這是圍繞優化媒體組合，並從更傳統的線性電視數字社交中轉變。我們的投資團隊在構建更多創作者內容方面做得非常出色，這有助於提升品牌的價值。我之前提到的 Here for Life 活動確實有助於在漏斗頂部建立品牌價值，我們在這方面看到了很多強勁的表現。我們看到品牌健康狀況的提升。您知道，搜索動態表現得很好。

But then as we kind of optimize through and down through the funnel, you know, just really being able to be a lot more focused, you know, whether it be thinking about digital, video and social, that helps us drive that conversion through the funnel. So things like YouTube have been really strong for us as the teams are doing test and learn. So I think one of the things that's really good with the new structure we put in at the back end of last year, it's just they're a lot more agile, they're making moves faster and a lot more tools to be able to help us to do that. So it's fair to say continued investment because our brand awareness, there's still a lot of opportunity, still a lot of customers to attract.

但當我們在漏斗中進行優化時，您知道，能夠更加專注，無論是考慮數字、視頻和社交，這有助於我們推動漏斗中的轉化。因此，像 YouTube 這樣的渠道對我們來説非常強勁，因為團隊正在進行測試和學習。所以我認為，去年底我們所建立的新結構的一個好處就是，他們變得更加靈活，能夠更快地做出決策，並擁有更多工具來幫助我們做到這一點。因此，可以説我們會繼續投資，因為我們的品牌知名度仍然有很多機會，還有很多客户需要吸引。

So you're going to continue to see us doing that through broader campaigns, but then a lot sharper through the funnel in terms of driving out the conversion, including, you know, to Tom's question earlier, how do we really make sure agentic commerce, you know, is a big frontier for us so, you know, continue to see more of that evolution. That's very helpful. Thank you very much. Thank you, Eric.

所以您將繼續看到我們通過更廣泛的活動來做到這一點，但在推動轉化方面會更加精準，包括，您知道，回應 Tom 之前的問題，我們如何確保代理商業是我們一個重要的前沿，因此，您將繼續看到更多這樣的演變。這非常有幫助。非常感謝。謝謝你，Eric。

OPERATOR

運營商

Our next question is in the light of Matt Karanda with Roth Capital. Please proceed with your questions.

下一個問題來自 Roth Capital 的 Matt Karanda。請提出您的問題。

Matt Karanda (Equity Analyst)

Matt Karanda（股票分析師）

Hey, guys. Thanks. Just given the higher end strength that you mentioned, wondered if you could maybe just set the table for the larger format product that you expect to introduce later this year. Wanted to hear a little bit, I guess, about updated thinking around timing of the introduction. Anything material that you built into the sales guidance for the year and then how we should be thinking about cannibalization kind of the larger configuration sectionals.

嘿，大家好。謝謝。鑑於您提到的高端產品的強勁表現，我想知道您是否可以為您預計在今年晚些時候推出的大型產品設定一個框架。想聽聽關於推出時機的更新想法。您是否在銷售指導中納入了任何實質性的內容，然後我們應該如何看待對大型配置模塊化產品的替代影響。

Shawn Nelson (Chief Executive Officer)

Shawn Nelson（首席執行官）

Great question, Matt. Thanks. Yeah, we're very excited about the larger format sectional sofa that we're introducing in the latter half of this year. To get right to the question, we do have sales planned in this year for this product, but we have purposely planned very little from expectation perspective. From an inventory buyer perspective. We obviously would love to outperform and see this as a healthy, exciting product launch that will more materially affect next year. But there certainly is an expectation built into this year. I think it's important to zoom out and understand our overall perspective on sectional sofas and on competing in general for more market share. Lovesac is evolving very rapidly right now.

好問題，Matt。謝謝。是的，我們對今年下半年推出的大型模塊沙發非常興奮。直接回答你的問題，我們確實計劃在今年銷售這一產品，但我們故意設定了很低的預期。從庫存採購的角度來看，我們顯然希望超出預期，並將其視為一個健康、令人興奮的產品發佈，這將對明年產生更大的影響。但今年的確有一個預期。我認為重要的是要放眼全局，理解我們對模塊沙發的整體看法，以及在爭奪更多市場份額方面的競爭。Lovesac 目前正在迅速發展。

And over the next 18 months, investors, you know, if we were to fast forward even 12 months from now and 18 months from now, Lovesac will look and show up very differently and become in many respects much more competitive, both with what I will call incumbents in the home category, you know, those larger firms that offer full catalogs. And, you know, while we will be a long way from any kind of full catalog, we do believe that in the realms that we intend to play in. So now we'll start with the living room. We can be more competitive if we show up with a more fulsome product offering. So this goes beyond even just sectional sofas.

在接下來的 18 個月裏，投資者們，如果我們快進到 12 個月後或 18 個月後，Lovesac 將會有很大的變化，並在許多方面變得更加具有競爭力，無論是與我所稱的家居類的現有企業競爭，這些大型公司提供完整的產品目錄。雖然我們距離任何完整目錄還有很長的路要走，但我們相信在我們打算進入的領域中，尤其是客廳，如果我們提供更全面的產品選擇，我們將能夠更具競爭力。因此，這不僅僅是模塊沙發的問題。

This goes into some very limited accent products and what we'll call complements that will allow us to complete the room and compete better, compete better through photography, online catalog and the overall merchandising and consumer experience. But we will be anchored in the living room by sectional sofas. And that includes snugs. You know, Snug is getting a corner piece this year very soon. Snug is getting the swivels for the chairs, which I'm actually sitting in right now. And it's, you know, a really exciting product. I think I have more snug chairs and swivels in my home, obviously on prototype than any other LoveSac product in my life now.

這還涉及一些非常有限的配件產品，以及我們所稱的補充產品，這將使我們能夠完善房間佈局，更好地競爭，通過攝影、在線目錄和整體商品展示及消費者體驗來提升競爭力。但我們將以模塊沙發作為客廳的核心。這包括 Snugs。你知道，Snug 今年很快就會推出一個角落單元。Snug 還將推出旋轉椅子，而我現在正坐在其中。這是一個非常令人興奮的產品。我想我家裏有更多的 Snug 椅子和旋轉椅，顯然是原型產品，而不是其他任何 Lovesac 產品。

And it speaks to this idea that Loves that consumers can have any one of these three platforms that we're talking about in their life in the same room, even in different rooms in different places and we, we absolutely intend to take more market share of the living room and by the way, other rooms of the home that have living room esque soft seating experiences. So the. So rather than even view Sactional as the anchor of this business on the go forward, I'm talking about the, let's call it the living room business. We really should shift our thinking to sectional sofas. And by the way, in the consumer's mind, that's what LoveSac is famous for. We see it reflected back to us every day on social media. Consumers don't speak to hey, check out my sactionals. They say, you know, check out my love sack.

這表明，Lovesac 的消費者可以在同一個房間，甚至在不同的房間和不同的地方擁有我們所談論的這三種平台。我們絕對打算在客廳以及其他具有客廳風格軟座體驗的房間中爭取更多的市場份額。因此，與其將模塊沙發視為未來業務的核心，我更傾向於談論客廳業務。我們真的應該轉變思維，關注模塊沙發。順便説一下，在消費者的心目中，這就是 Lovesac 的名聲。我們每天在社交媒體上都能看到這一點。消費者不會説，嘿，看看我的模塊沙發。他們會説，嘿，看看我的 Lovesac。

And it's often confusing to me. As you know, the father of this brand, a lovesack, used to be a 6 foot 8 foot beanbag. But a love sack now in a customer's mind is a really big, amazing, gushy, ushy sofa that does all the things and by the way, each one of our platforms will do all the things in their own way, including this one that we're introducing in the back half of this year that you asked about. So we're really excited about it. It's part of a bigger strategic move and it really kind of sets the table and solidifies our standing again to compete for more market share as we then move into the new room, which obviously is also a massive focus that is taking a lot of attention, energy and investment inside the company now.

這常常讓我感到困惑。作為這個品牌的創始人，Lovesac 曾經是一個 6 英尺 8 英尺的豆袋。但在顧客的心中，Lovesac 現在是一個非常大、令人驚歎、柔軟的沙發，能夠滿足所有需求。順便説一下，我們的每個平台都會以自己的方式滿足所有需求，包括你提到的我們將在今年下半年推出的這個產品。因此，我們對此感到非常興奮。這是一個更大戰略舉措的一部分，確實為我們再次爭取更多市場份額奠定了基礎，同時我們也將進入新的房間，這顯然也是一個巨大的焦點，正在吸引公司內部大量的關注、精力和投資。

Matt Karanda (Equity Analyst)

Matt Karanda（股票分析師）

Appreciate all that detail, Sean. Thanks. And then maybe just with the new room that's coming and kind of the wider assortment that you're referencing, curious how we should be thinking about showrooms and expansion there. I know that you guys have slowed the expansion a bit, but how should we be thinking about how the assortment fits into the existing showroom footprint that you have? Do we need to sort of change some of the posture of the showrooms to make room for the new products? New room that you'll be introducing next year. I wanted to hear a little thoughts on sort of the showroom strategy.

感謝你提供的所有細節，Sean。然後，關於即將到來的新房間以及你提到的更廣泛的產品組合，我很好奇我們應該如何看待展廳和擴展。我知道你們已經放慢了擴展的步伐，但我們應該如何看待這些產品組合與現有展廳面積的契合？我們是否需要改變一些展廳的佈局，以為明年推出的新產品騰出空間？我想聽聽你對展廳戰略的一些看法。

Shawn Nelson (Chief Executive Officer)

Shawn Nelson（首席執行官）

Yeah, this is a great question, one that I'll be a little bit vague about because we're not quite ready to reveal all of our plans there. But I'll try to give you some breadcrumbs. LoveSac is one of the world's foremost operators of small footprint specialty retail transacting on very large ticket, high margin products fueled through advertising. Fueled by advertising. We don't want to mess that up. Right. We recognize the power in that. As you, as anyone can see, stores still represent almost 70% of our sales. And we love that because these are customers that we have a deeper relationship with. We know them, we hear their stories, we plan with them, and then we continue to follow up and clientele with their friends. There isn't a better outcome than having face to face real world transactions and relationships, especially in this day and age.

是的，這是一個很好的問題，我會對此稍微模糊一些，因為我們還沒有準備好揭示所有的計劃。但我會盡量給你一些線索。Lovesac 是全球最重要的小型專業零售商之一，專注於高票價、高利潤的產品，通過廣告驅動銷售。我們不想搞砸這一點。我們認識到這一點的力量。正如任何人都能看到的，門店仍然佔我們銷售的近 70%。我們喜歡這樣，因為這些客户與我們有更深的關係。我們瞭解他們，聽到他們的故事，與他們一起規劃，然後繼續跟進並與他們的朋友建立聯繫。沒有比面對面的真實交易和關係更好的結果，尤其是在這個時代。

And that's becoming more and more true as society continues to evolve and become more digital. So we are absolutely showroom friendly and excited to be in that business. At the same time, our original mantra continues to be true. We want as few as we can get away with. Right. Like we are a business, we intend to be a high margin business. Obviously, we're investing very heavily in all this innovation that we've spoken of, which is, you know, compressing our overall margins right now. And to some degree that, you know, that will be the case for a while because we have a lot of innovation to unleash. But stores and the rent for these, and we now, you know, call them stores, call them showrooms, represent our largest expense, you know, the rent expense.

隨着社會不斷發展並變得更加數字化，這一點變得越來越真實。因此，我們絕對支持展廳，並對這一業務感到興奮。同時，我們的初衷仍然是儘可能少。我們是一家企業，打算成為一家高利潤的企業。顯然，我們正在對我們所談論的所有創新進行大量投資，這在一定程度上正在壓縮我們的整體利潤，因為我們還有很多創新需要釋放。但門店及其租金，現如今，我們稱之為門店或展廳，代表了我們最大的開支，租金開支。

And so what I'm saying to you, as we move into a broader assortment, no, we don't intend to grow the size of our footprint very much. Already though, the leases we've been signing is we've gotten sharper real estate strategy, frankly, more power in the marketplace because LoveSac shows up with very high sales per square foot, et cetera. We've been signing, you know, slightly larger leases for a long time now and found that to be very successful, still putting up the same and better metrics from a sales per square foot and overall performance standpoint. So we'll continue to allow that square footage to creep just a little bit. But they're still, you know, in that 1000 1200. A big love sex store might be 1500 square foot range.

所以我想告訴你的是，當我們進入更廣泛的產品組合時，我們並不打算大幅擴大我們的市場規模。不過，實際上，我們簽署的租約已經讓我們的房地產策略更加精準，坦率地説，在市場上也更具競爭力，因為 LoveSac 的每平方英尺銷售額非常高等等。我們已經簽署了稍微大一點的租約，並發現這非常成功，銷售每平方英尺的指標和整體表現仍然保持在同樣或更好的水平。因此，我們將繼續讓這些面積稍微增加一點。但它們仍然在 1000 到 1200 平方英尺之間，一個大型的 LoveSac 店可能在 1500 平方英尺的範圍內。

As we look toward the new room, again, I'll keep it vague other than to say we recognize the power in focusing a small footprint on selling anchor items. So the anchor for our living room format is the sectional sofa. And we don't want to dilute that. I'll also say though that we want to lean into that strength, amplify that strength, and be able to take advantage of now new opportunities to have these brand billboards in the best geographies and real estate in the United States of America. It's, you know, another piece of this overall marketing engine that we've built.

展望新房間，我會保持模糊，只想説我們認識到專注於銷售核心商品的小面積的力量。因此，我們客廳格式的核心商品是沙發。我們不想稀釋這一點。不過，我還想説，我們希望利用這一優勢，放大這一優勢，並能夠利用現在在美國最佳地理位置和房地產中展示這些品牌廣告牌的新機會。這是我們建立的整體營銷引擎的另一個組成部分。

So lastly, I'll just say that we do also like the idea of every one of these wonderful associates that we have, you know, we have, you know, almost 2,000 sackers around the country representing the brand we love, empowering them to sell against a whole catalog and use our website as that full digital configuration experience. So even as we talk about some of these complementary products that may or may not appear in their stores, as we talk about new room products that may or may not appear in their stores, their ability to sell against a full catalog of product that's broadening and create these wonderful interactions with customers.

最後，我想説我們也喜歡每一位出色的員工的想法，我們在全國幾乎有 2000 名銷售人員代表我們熱愛的品牌，賦予他們銷售整個產品目錄的能力，並使用我們的網站作為完整的數字配置體驗。因此，即使我們談論一些可能會或可能不會出現在他們商店中的互補產品，或者談論一些可能會或可能不會出現在他們商店中的新房間產品，他們能夠銷售一個不斷擴展的完整產品目錄，並與客户創造這些美好的互動。

You've seen how we can miniaturize our products through the blocks that have been, you know, copied by others at this point because they're so effective. But our ability to sell very large ticket, high margin items out of small spaces is a superpower of ours and we intend to lean into that as you watch all this innovation unfold of next year. So we have a North Star of keeping, let's just call it rent low, expenses low, and sales higher and higher.

你們已經看到我們如何通過那些已經被他人複製的模塊化產品來縮小我們的產品，因為它們非常有效。但我們在小空間內銷售高價、高利潤商品的能力是我們的超級能力，我們打算在明年所有這些創新展開時繼續利用這一點。因此，我們的北極星是保持租金低、費用低、銷售額不斷提高。

And that's what drives our decision making in that realm.

這就是我們在這一領域做出決策的驅動力。

Keith Signer (Chief Financial Officer)

Keith Signer (首席財務官)

Just to throw a CFO style bullet on the end. And just for fun, in the simplest form, Matt, the way I think about this is as opposed to here's our store, how many stores can we have? It's what market share do we think the lovesac brand can take across all of these products and platforms? And then what's the most efficient way to get it? We're going to test a few things, learn from that, what gives the greatest customer experience and then let the data tell us what the next steps are. So just a slightly different summary on exactly what Sean just said.

我想以首席財務官的風格總結一下。簡單來説，Matt，我對這件事的看法是，與其問我們能開多少家店，不如問我們認為 LoveSac 品牌在所有這些產品和平台中能佔據多少市場份額？然後，獲取市場份額的最有效方式是什麼？我們將測試一些東西，從中學習，看看什麼能提供最佳的客户體驗，然後讓數據告訴我們下一步該怎麼做。所以這只是對 Sean 剛才所説內容的稍微不同的總結。

Matt Karanda (Equity Analyst)

Matt Karanda (股票分析師)

Thanks guys. Appreciate all the detail.

謝謝大家。感謝你們提供的所有細節。

OPERATOR

操作員

Thank you. Ladies and gentlemen, this concludes our question and answer session. I'll turn the floor back to management for closing comments.

謝謝。女士們，先生們，這次問答環節到此結束。我將把時間交還給管理層進行結束髮言。

Shawn Nelson (Chief Executive Officer)

Shawn Nelson (首席執行官)

Thanks so much to all of the Lovesac family out there that supports this brand and company and our Lovesac investors that continue to give us the support we need to unfold this awesome vision and ultimately inspire humankind to buy better stuff, saying buy less stuff. Have a great day.

非常感謝所有支持這個品牌和公司的 LoveSac 家族，以及繼續給予我們支持的 LoveSac 投資者，讓我們能夠展開這個偉大的願景，並最終激勵人類購買更好的產品，減少購買不必要的東西。祝你們有美好的一天。

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.

免責聲明： 本文檔僅供信息參考。儘管我們努力確保準確性，但此自動轉錄可能存在錯誤或遺漏。有關公司的正式聲明和財務信息，請參閲公司的 SEC 文件和官方新聞稿。公司參與者和分析師的陳述反映了他們在本次電話會議日期的觀點，可能會隨時更改，恕不另行通知。

Lovesac 公佈 2027 年第一季度業績：完整收益電話會議記錄