Lovesac Co (LOVE) 2023 Q4 法說會逐字稿

Greetings. Welcome to Lovesac's Fourth Quarter Fiscal 2023 Earnings Conference Call.

問候。歡迎來到 Lovesac 的 2023 財年第四季度收益電話會議。

(Operator Instructions)

（操作員說明）

Please note, this conference is being recorded. I will now turn the conference over to Rachel Schacter of ICR. Thank you. You may begin.

請注意，此會議正在錄製中。我現在將會議轉交給 ICR 的 Rachel Schacter。謝謝。你可以開始了。

Thank you. Good morning, everyone. With me on the call is Shawn Nelson, Chief Executive Officer; Mary Fox, President and Chief Operating Officer; and Donna Dellomo, Chief Financial Officer.

謝謝。大家，早安。與我通話的是首席執行官 Shawn Nelson；總裁兼首席運營官 Mary Fox；和首席財務官 Donna Dellomo。

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.

在我們開始之前，我想提醒您，所討論的一些信息將包括有關未來事件和我們未來財務業績的前瞻性陳述。其中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.

實際結果可能與此類聲明中的結果存在重大差異。要討論這些風險和不確定性，您應該查看公司向美國證券交易委員會提交的文件，其中包括今天的新聞稿。

You should not rely on our forward-looking statements as projections 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.

您不應依賴我們的前瞻性陳述作為對未來事件的預測。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日的假設和信念，除適用法律要求外，我們不承擔更新這些陳述的義務。

Our discussion today will include non-GAAP financial measures, including EBITDA and adjusted EBITDA.

我們今天的討論將包括非 GAAP 財務指標，包括 EBITDA 和調整後的 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'd like to turn the call over to Shawn Nelson, Chief Executive Officer of The Lovesac Company.

這些非 GAAP 措施應作為我們 GAAP 結果的補充，而不是替代或孤立於我們的 GAAP 結果。我們的新聞稿中提供了最直接可比的 GAAP 財務指標與此類非 GAAP 財務指標的調節作為補充財務信息。現在我想把電話轉給 The Lovesac Company 的首席執行官 Shawn Nelson。

Thank you, Rachel. Good morning, everyone, and thank you for joining us to review our record results for fiscal 2023, and to discuss our outlook and plans for fiscal year 2024, which is already underway.

謝謝你，雷切爾。大家早上好，感謝您加入我們，回顧我們 2023 財年創紀錄的業績，並討論我們已經在進行中的 2024 財年展望和計劃。

I will begin by sharing a high-level overview of both. Then Mary Fox, our President and COO, will discuss our key growth intuits for fiscal 2024. Finally, Donna Dellomo, our CFO, will review our financial results and a few other items related to our outlook in more detail. Starting with our fourth quarter and fiscal 2023 performance.

我將從分享兩者的高級概述開始。然後我們的總裁兼首席運營官瑪麗福克斯將討論我們 2024 財年的主要增長直覺。最後，我們的首席財務官唐娜德洛莫將更詳細地審查我們的財務業績以及與我們的前景相關的其他一些項目。從我們第四季度和 2023 財年的業績開始。

We put up record results for the fourth quarter and for the full year, building on our long track record of outperforming the industry and driving share gains. For the quarter, we delivered sales growth of 21.7% and adjusted EBITDA growth of 51%, both ahead of the outlook we shared on our Q3 call.

我們在第四季度和全年取得了創紀錄的業績，這建立在我們跑贏行業和推動股價上漲的長期記錄之上。本季度，我們實現了 21.7% 的銷售額增長和 51% 的調整後 EBITDA 增長，均高於我們在第三季度電話會議上分享的前景。

For the year, we generated a total annual net sales increase of 30.8% to $651.5 million, total omni Comp sales growth of 21.9%, and an adjusted EBITDA earnings increase of 8.7% to $60.4 million. We ended the year with total liquidity of $79.5 million, which includes cash of $43.5 million and availability on our line of credit.

今年，我們的年度淨銷售額增長 30.8% 至 6.515 億美元，omni Comp 總銷售額增長 21.9%，調整後的 EBITDA 收益增長 8.7% 至 6040 萬美元。我們年底的總流動資金為 7950 萬美元，其中包括 4350 萬美元的現金和可用的信用額度。

Notably, our strong debt-free balance sheet positions us well to navigate a difficult macro backdrop. Put perspective on the significance of these results, fiscal 2023 was a challenging year for the furniture industry given the macro pressures facing the consumer.

值得注意的是，我們強大的無債務資產負債表使我們能夠很好地應對困難的宏觀背景。從這些結果的重要性來看，鑑於消費者面臨的宏觀壓力，2023 財年對家具行業來說是充滿挑戰的一年。

As of year-end, our data sources showed the home category overall to be down 16% versus the prior year. In contrast, our full year sales increased 30.8% indicating meaningful market share gains. More importantly, these industry-leading sales results were achieved by converting real-time demand as we typically ship just days after an order is placed. We never had any meaningful backlog inflating our revenue results.

截至年底，我們的數據來源顯示住宅類別整體比上一年下降 16%。相比之下，我們的全年銷售額增長了 30.8%，表明市場份額大幅增長。更重要的是，這些行業領先的銷售業績是通過轉換實時需求實現的，因為我們通常會在下訂單後幾天發貨。我們從來沒有任何有意義的積壓工作會誇大我們的收入結果。

We also continued with inflation across our cost base to varying degrees. Additionally, we were up against the record financial results that were delivered in fiscal 2022 and the 2021 stack. Our strong financial and operational results continue to be reflective of our unique competitive and operational advantages across our people, brand, business model and operating platform.

我們還在不同程度上繼續在我們的成本基礎上通貨膨脹。此外，我們還面臨著 2022 財年和 2021 財年創紀錄的財務業績。我們強勁的財務和運營業績繼續反映出我們在人員、品牌、業務模式和運營平台方面的獨特競爭和運營優勢。

Lovesac is a sustained growth story with a 4-year net sales CAGR of 40.8% and 4-year adjusted EBITDA CAGR of 105%. Shifting gears back to FY '23 full year results. We are very proud of our accomplishments for the year, which were driven by our unique omni-channel business model centered around our infinity flywheel, where success drives more success. Our infinity flywheel allows us to do business differently and consistently outperform the category in which we operate.

Lovesac 是一個持續增長的故事，4 年淨銷售額 CAGR 為 40.8%，4 年調整後 EBITDA CAGR 為 105%。換檔回到 FY '23 全年業績。我們為我們今年取得的成就感到非常自豪，這些成就是由我們獨特的以無限飛輪為中心的全渠道商業模式推動的，在這種模式下，成功會帶來更多的成功。我們的無限飛輪使我們能夠以不同的方式開展業務，並始終優於我們經營的類別。

In a nutshell, it goes like this. customers see our highly advantaged high-ticket proprietary products via advertising of every kind. They seek to experience it in one of our various branded physical touch points, configure it online or in showroom with the research, invest in it because Designed For Life products are so long-lasting and investable, evolve and upgrade it to drive lifetime value because Designed For Life products uniquely facilitate this kind of repeat behavior. And finally, they advocate it actively because their experience with the product and our brand was so good. Thanks to the investments we've continued to make that improve our customer experience model ongoing.

簡而言之，它是這樣的。客戶通過各種廣告看到我們極具優勢的高價專有產品。他們尋求在我們的各種品牌物理接觸點之一體驗它，通過研究在線或在陳列室配置它，投資它，因為 Designed For Life 產品是如此持久和可投資，發展和升級它以推動生命週期價值，因為Designed For Life 產品獨特地促進了這種重複行為。最後，他們積極倡導它，因為他們對產品和我們品牌的體驗非常好。由於投資，我們一直在不斷改進我們的客戶體驗模型。

This then drives more people to see us, again, which starts the process all over again and further drive the flywheel. Mary will expand on each note of this flywheel, showing specific results to validate it, and our plans to enhance it further through the investments for our future, we have made of late and continue to make even as we hold ourselves accountable to produce meaningful profits.

這又會促使更多人再次看到我們，從而重新開始整個過程並進一步推動飛輪。瑪麗將詳述這個飛輪的每一個音符，展示具體的結果來驗證它，以及我們通過對未來的投資進一步加強它的計劃，我們最近已經做出並將繼續做出，即使我們認為自己對產生有意義的利潤負責.

In terms of our outlook for FY '24, we expect the macro bad drop to remain challenging as elevated inflation and higher interest rates drive a more cautious consumer and put pressure on the high-ticket, more discretionary home category overall. We are highly cautious operationally in this environment. We are controlling expenses very tightly in every realm in the name of efficiency.

就我們對 24 財年的展望而言，我們預計宏觀經濟下滑仍將面臨挑戰，因為通脹上升和利率上升推動消費者更加謹慎，並給高價、更具自由支配性的整體房屋類別帶來壓力。在這種環境下，我們在操作上非常謹慎。我們以效率的名義在每個領域都非常嚴格地控制開支。

We also expect to realize significant benefits from amortization of last year's inbound freight costs. This will drive up gross margins beginning in Q2, especially and serve as a partial offset to known SG&A increases year-over-year. The net result will be EPS growth. We will continue to make surgical investments in our future because we believe very strongly in the TAM headroom for the seating and home audio categories, where we have less than 2% penetration and the massive total available markets that await in adjacent categories, not yet announced, which will leverage our highly competitive Designed For Life approach.

我們還預計將從去年的入境運費攤銷中獲得顯著收益。從第二季度開始，這將推高毛利率，尤其是部分抵消已知的 SG&A 同比增長。最終結果將是每股收益增長。我們將繼續對我們的未來進行手術投資，因為我們非常相信座椅和家庭音響類別的 TAM 空間，我們的滲透率不到 2%，並且在相鄰類別中等待的大量可用市場尚未公佈，這將利用我們極具競爭力的 Designed For Life 方法。

Recent investments begin to pay back as soon as the second half of this year and expected results from a key product launch in the Sactionals family of products. We have a schedule for physical touch point expansion and product launches that will drive reliable sales growth with positive cash flows for another year of strong market share gains versus broader decelerating category.

近期的投資最早將於今年下半年開始收回，預計 Sactionals 系列產品中的一款關鍵產品的發布將帶來成果。我們有一個物理接觸點擴展和產品發布的時間表，這將推動可靠的銷售增長和積極的現金流，以實現又一年的強勁市場份額增長，而不是更廣泛的減速類別。

Donna will provide more detail on guidance. This is a continuation of a multiyear trend for Lovesac. We greatly outperform our category, and this further strengthens the infinity flywheel effect spoken of. At Lovesac, we are maniacally focused on the long term because we are convinced that our business model has tremendous potential for continued high margin revenue growth in our current categories, adjacent categories and related services.

唐娜將提供有關指導的更多詳細信息。這是 Lovesac 多年趨勢的延續。我們的表現大大優於我們的類別，這進一步加強了所說的無限飛輪效應。在 Lovesac，我們瘋狂地關注長期，因為我們相信我們的商業模式具有巨大的潛力，可以在我們當前的類別、相鄰類別和相關服務中實現持續的高利潤收入增長。

Because of our differentiated approach, these opportunities are unique to us. We make very long-term Designed For Life products. We pair these with long-term focused programs, policies and services that will eventually be monetized. The intended result is long-term relationships with customers, a brand that people just love.

由於我們的差異化方法，這些機會對我們來說是獨一無二的。我們生產非常長期的 Designed For Life 產品。我們將這些與最終將貨幣化的長期重點計劃、政策和服務結合起來。預期的結果是與客戶建立長期關係，成為人們喜愛的品牌。

Our pursuit of this long-term vision is relentless and sustained. We view the need to run a very disciplined, efficient cash-generating business right now in this challenged macro environment so that we may unlock our promising future. This means preserving cash, managing expenses tightly and being surgical with investments, but investing nonetheless.

我們對這一長期願景的追求是不懈和持續的。我們認為，在這個充滿挑戰的宏觀環境中，現在需要經營一個非常有紀律、高效的現金產生業務，這樣我們才能開啟充滿希望的未來。這意味著保留現金、嚴格管理開支並在投資上精打細算，但仍然要進行投資。

We are willing to be this disciplined because we can be patient, looking forward to the expanding opportunity ahead. Management is 100% committed to this way of thinking. This is a big part of what we mean when we speak of sustainability, products that can actually sustain and a pragmatic cash-generating business that can actually sustain sustainability in all its forms is our greatest passion.

我們願意遵守紀律，因為我們可以耐心等待前方不斷擴大的機會。管理層 100% 致力於這種思維方式。當我們談到可持續性時，這就是我們的意思的很大一部分，實際上可以維持的產品以及可以實際維持各種形式的可持續性的務實的現金產生業務是我們最大的熱情。

So in summary, it was a strong end to another great year at Lovesac. We made important strides against each of our strategic growth initiatives and made good progress strengthening our foundation to support the long runway of growth still ahead. We are already more than 6x the size we were at IPO in 2018, cash generative in the year ahead and profitable ongoing.

所以總而言之，這是 Lovesac 又一個偉大的一年的完美結局。我們在每一項戰略增長計劃上都取得了重要進展，並取得了良好進展，鞏固了我們支持未來長期增長的基礎。我們的規模已經是 2018 年 IPO 時的 6 倍多，未來一年將產生現金，並且持續盈利。

Even with significant headwinds contemplated, we are braced for a choppy macro backdrop and we'll continue to execute with discipline, willing to adjust to changing conditions and deliver bottom line results. as we grow and drive long-term value for all stakeholders.

即使考慮到重大的逆風，我們也為動蕩的宏觀背景做好了準備，我們將繼續紀律嚴明地執行，願意根據不斷變化的情況進行調整併交付底線結果。隨著我們的成長並為所有利益相關者創造長期價值。

Before turning the call over to Mary, I want to thank the entire Lovesac team for all they accomplished in fiscal 2023 while navigating much uncertainty. We have a great team and a culture that exhibits the sentiment inferred by our timeless ticker symbol, both at our hubs and on the front lines and in all our various touch points. We are so thankful for their discipline and commitment and generally cool disposition.

在將電話轉給 Mary 之前，我要感謝整個 Lovesac 團隊在 2023 財年取得的一切成就，同時應對了很多不確定性。我們擁有一支優秀的團隊和一種文化，無論是在我們的樞紐和前線，還是在我們所有的各種接觸點，都展現了我們永恆的股票代碼所暗示的情緒。我們非常感謝他們的紀律和承諾以及普遍冷靜的性格。

We look forward to building on our success in fiscal 2024. With that, I will hand it over to Mary to cover our strategic priorities and progress. Mary?

我們期待在 2024 財年取得成功。有了這個，我將把它交給瑪麗，以涵蓋我們的戰略重點和進展。瑪麗？

Thank you, Shawn, and good morning, everyone. We are pleased with our strong end of the fiscal year as we delivered record results in fiscal '23, even in a difficult operating environment. As Shawn shared, our net sales growth in fiscal '23 was 30.8%.

謝謝你，肖恩，大家早上好。我們對本財年的強勁表現感到滿意，因為我們在 23 財年取得了創紀錄的業績，即使在艱難的經營環境中也是如此。正如肖恩所分享的那樣，我們在 23 財年的淨銷售額增長了 30.8%。

And using fiscal '29 as a baseline, our 4-year demand comp stack is up 293%. Every year since then, we have delivered profitable growth with a 4-year net sales CAGR of 40.8% and a full year adjusted EBITDA CAGR of 105.5%.

以 29 財年為基準，我們 4 年的需求組合增長了 293%。從那以後，我們每年都實現盈利增長，4 年淨銷售額 CAGR 為 40.8%，全年調整後 EBITDA CAGR 為 105.5%。

This consistent financial out performance every year is ahead of any other brand in our category, underpinned by our customer and product-centric focus and our unique omni-channel business model with an infinity flywheel unlike anyone else.

這種每年一致的財務業績都領先於我們類別中的任何其他品牌，這得益於我們以客戶和產品為中心的關注以及我們獨特的全渠道商業模式以及與其他任何人不同的無限飛輪。

A few highlights of our unique infinity flywheel includes firstly, we compete in a large addressable market of over $46 billion with 48% of households having an annual income of over $75,000 per year. We have the #1 bestselling couch in America.

我們獨特的無限飛輪的一些亮點包括：首先，我們在一個超過 460 億美元的大型潛在市場中競爭，其中 48% 的家庭年收入超過 75,000 美元。我們擁有全美銷量第一的沙發。

We continue to take market share every year, and yet we barely scratched the surface of this huge and fragmented category. Customers love our Designed For Life brand and product platform and they tell their friends and family this, which has resulted in word of mouth becoming our #1 awareness driver.

我們每年都在繼續佔據市場份額，但我們對這個龐大而分散的類別幾乎沒有觸及皮毛。客戶喜歡我們的 Designed For Life 品牌和產品平台，他們將此告訴他們的朋友和家人，這導致口耳相傳成為我們排名第一的知名度驅動因素。

38% of our customers report that they don't even cross shop with any other brand. Second highlight, our brand health is stronger than ever with innovation that is changing the landscape of the home. This is exemplified by our marketing ROIs, which continue to be very strong.

我們 38% 的客戶報告說他們甚至不會交叉購買任何其他品牌。第二個亮點，我們的品牌健康比以往任何時候都更強大，創新正在改變家居景觀。我們的營銷投資回報率仍然非常強勁，這就是例證。

In addition, the innovation of StealthTech has helped us to continue to have incredibly efficient marketing with a customer lifetime value, customer acquisition cost ratio of over 5x, that is unsurpassed. This, in turn, enables us to continue to drive sales with market-leading levels of investment.

此外，StealthTech 的創新幫助我們繼續擁有令人難以置信的高效營銷，客戶生命週期價值、客戶獲取成本比率超過 5 倍，這是無與倫比的。這反過來又使我們能夠繼續以市場領先的投資水平推動銷售。

Thirdly, we have best-in-class touch point economics, second only to Apple and Tiffany, with incredible payback periods under a year and 4x the sales per foot productivity of our competitors. We continue to see improvements in our new showroom ramp-up rate, which gives us additional confidence in our ability to expand penetration with our touch point expansion plan.

第三，我們擁有一流的接觸點經濟性，僅次於 Apple 和 Tiffany，投資回收期不到一年，是我們競爭對手的每英尺銷售額的 4 倍。我們繼續看到我們新陳列室的提升率有所提高，這使我們對我們通過接觸點擴展計劃擴大滲透率的能力更有信心。

And finally, our advantaged supply chain delivers orders to our customers in a matter of days with evergreen inventory. This results in customer satisfaction of over 84%, increasing customer loyalty and the strength of our infinity flywheel. We are uniquely positioned to continue to profitably take market share even through the current market dynamics that Shawn discussed.

最後，我們具有優勢的供應鏈可在幾天內通過常青庫存向我們的客戶交付訂單。這導致客戶滿意度超過 84%，提高了客戶忠誠度和我們無限飛輪的強度。即使在 Shawn 討論的當前市場動態下，我們也處於獨特的位置，可以繼續盈利地佔據市場份額。

As you are aware, we run our business with a strong focus on growth and an ROI-driven investment discipline. As demonstrated by our results in fiscal '23 and before, we will continue to grow ahead of the industry, fueled by disciplined investments in our strategic initiatives and our capabilities. I will now provide key progress highlights on our go-forward plans on each of our strategic initiatives.

如您所知，我們經營業務的重點是增長和投資回報率驅動的投資紀律。正如我們在 23 財年及之前的業績所證明的那樣，在對我們的戰略計劃和能力進行嚴格投資的推動下，我們將繼續領先於行業。我現在將提供關於我們每項戰略舉措的前進計劃的關鍵進展亮點。

Firstly, starting with product innovation. StealthTech continues to be the highlight for us. Notably, the product continues to gain share. And we believe we have merely scratched the surface with respect to its potential, which we believe will grow past $100 million or more in annual sales in the future.

一是從產品創新入手。 StealthTech 仍然是我們的亮點。值得注意的是，該產品繼續獲得份額。我們相信我們只是了解其潛力的皮毛，我們相信未來年銷售額將超過 1 億美元或更多。

For fiscal '23 Sactionals that were sold with StealthTech had an average order value close to $8,500 or nearly 3x the average Sactional average order value.

在 23 財年，與 StealthTech 一起銷售的 Sactionals 的平均訂單價值接近 8,500 美元，幾乎是 Sactional 平均訂單價值的 3 倍。

Total transactions for Sactionals with StealthTech included were over $100 million for fiscal '23 and building throughout the year.

包括 StealthTech 在內的 Sactionals 在 23 財年和全年建設中的總交易額超過 1 億美元。

As we have shared, looking out to the next 2 to 3 years, we have planned new product launches for each year. And in the second half of fiscal '24, we will launch a significant innovation that will further open up the aperture of our share in the couch category.

正如我們分享的那樣，展望未來 2 到 3 年，我們計劃每年推出新產品。在 24 財年下半年，我們將推出一項重大創新，進一步擴大我們在沙發類別中的份額。

We look forward to sharing more details with you closer to the launch date. Looking ahead in terms of product innovation, we are excited about our innovation agenda. We are consistently adding to our product portfolio and thus expanding our addressable TAM from Sacs, the Sactionals, to home entertainment with StealthTech, and more to come, where home meets tech.

我們期待在臨近發布日期時與您分享更多詳細信息。在產品創新方面展望未來，我們對我們的創新議程感到興奮。我們一直在增加我們的產品組合，從而將我們的可尋址 TAM 從 Sacs、Sactionals 擴展到 StealthTech 的家庭娛樂，以及更多家庭與科技相結合的地方。

We are focused on unlocking the future runway with disruptive Designed For Life innovations planned steadily over the next 10 years, some in new product categories.

我們專注於通過在未來 10 年穩步計劃的顛覆性 Designed For Life 創新來開啟未來的跑道，其中一些創新屬於新產品類別。

Secondly, our omni-channel experience. We have become a true omni-channel retailer through a combination of our physical touch points and digital platforms.

其次，我們的全渠道體驗。通過我們的物理接觸點和數字平台的結合，我們已經成為一個真正的全渠道零售商。

Our continued focus on first-party data is enabling us to be a leader in utilizing the right customer and prospect data to drive a truly personalized omni-channel experience and meets the needs and expectations of our shoppers wherever they choose to experience our brand and products.

我們對第一方數據的持續關注使我們能夠成為利用正確的客戶和潛在客戶數據來推動真正個性化的全渠道體驗並滿足購物者的需求和期望的領導者，無論他們選擇體驗我們的品牌和產品.

For e-commerce, we had a very strong quarter 4 with sales growth of 26.4%, bucking the furniture e-commerce trend by over 4,600 basis points as one of the only brands to grow and be profitable. Traffic and conversion increased for fiscal '23 overall, and conversion, in particular, has accelerated in quarter 4 as we benefited from a full quarter of our redesigned configuration tool, which enhanced the overall experience.

對於電子商務，我們在第 4 季度表現非常強勁，銷售額增長 26.4%，比家具電子商務趨勢高出 4,600 多個基點，成為唯一實現增長和盈利的品牌之一。整個 23 財年的流量和轉換率有所增加，尤其是轉換率在第 4 季度加速，因為我們受益於整個季度重新設計的配置工具，從而增強了整體體驗。

In terms of our showrooms, from a financial standpoint, they continue to generate very high 4-wall contribution, and deliver increasingly strong returns with cash-on-cash payback in under a year and reduced occupancy costs year-over-year. We now see opportunity to roughly double our current showroom fleet from 195 to more than 400 locations over the next 5 years, and we'll continue exploring shop-in shop opportunities with additional retailers.

就我們的陳列室而言，從財務角度來看，它們繼續產生非常高的 4 牆貢獻，並在不到一年的時間內通過現金回報提供越來越強勁的回報，並逐年降低入住成本。現在，我們看到了在未來 5 年內將現有陳列室數量從 195 個增加到 400 多個的機會，我們將繼續探索與更多零售商合作的店中店機會。

Looking at our other channels, our Best Buy shop-in-shops are very powerful as they allow shoppers to experience our product, including our immersive surround sound system and StealthTech embedded technologies that are most effective when experienced in person.

看看我們的其他渠道，我們的 Best Buy 店中店非常強大，因為它們允許購物者體驗我們的產品，包括我們的沉浸式環繞聲系統和 StealthTech 嵌入式技術，這些技術在親身體驗時最有效。

Importantly, Best Buy shop-in-shop attachment rates for StealthTech are roughly double that of our stand-alone showrooms and 4x online, and they continue to grow. For Costco, we continue to strengthen our partnership with growth in physical roadshows planned for this year, which are managed by our team and are delivering improved economics to pre-pandemic levels.

重要的是，StealthTech 的 Best Buy 店中店附屬率大約是我們獨立陳列室的兩倍和在線的 4 倍，並且它們還在繼續增長。對於 Costco，我們繼續加強我們的合作夥伴關係，增加今年計劃的實體路演，這些路演由我們的團隊管理，並將改善的經濟狀況提高到大流行前的水平。

Our omni-channel model is resonating with consumers, as is shown by our improving customer satisfaction score. Overall customer satisfaction in quarter 4 improved from quarter 3 to our highest levels recorded driven in particular by strategic investments in resources and technology in our customer service capabilities, supply chain and our digital experience.

我們的全渠道模式引起了消費者的共鳴，這從我們不斷提高的客戶滿意度得分中可以看出。第 4 季度的總體客戶滿意度從第 3 季度提高到我們記錄的最高水平，這尤其受到我們對客戶服務能力、供應鍊和數字體驗的資源和技術的戰略投資的推動。

As we look ahead, we will continue to expand and improve our omni-channel strategy. And for fiscal '24, we expect to open 30 new showrooms. Our real estate strategy continues to evolve in leveraging both our predictive analytics tools and it's consistently updating our site selection model.

展望未來，我們將繼續擴大和改進我們的全渠道戰略。對於 24 財年，我們預計將開設 30 個新陳列室。我們的房地產戰略不斷發展，利用我們的預測分析工具，並不斷更新我們的選址模型。

Thirdly, our ecosystem. Our ecosystem is unique and robust with leading indicators that are all positive and best-in-class, including a customer lifetime value to CAC ratio that grew year-over-year, strong ROIs in marketing and word of mouth is our #1 awareness driver.

第三，我們的生態系統。我們的生態系統獨特而強大，領先指標都是積極的和一流的，包括客戶生命週期價值與 CAC 的比率逐年增長，強大的營銷投資回報率和口碑是我們的第一大意識驅動力.

Our ecosystem is centered around circle to consumer philosophy and the development of a circular ecosystem for our customers and products, driving optimal value for our customers and their design for live product platforms they have invested in. The goal is long-term relationship. During the year, we continue to market our product and brand using national advertising and traditional for as, including TV and established media, coupled with various digital strategies, leveraging social media, nonlinear TV and influence or advertising.

我們的生態系統圍繞消費者理念和為我們的客戶和產品開發循環生態系統，為我們的客戶及其投資的實時產品平台設計帶來最佳價值。目標是長期合作關係。在這一年中，我們繼續使用全國廣告和傳統廣告來營銷我們的產品和品牌，包括電視和成熟媒體，再加上各種數字策略，利用社交媒體、非線性電視和影響力或廣告。

Our digital marketing efforts focus heavily on localized and targeted tactics driving shoppers into a Lovesac touch point to experience our products in person. This reinforces our commitment to a truly omni-channel business model, meeting customers where they choose to interact with us.

我們的數字營銷工作主要側重於本地化和有針對性的策略，促使購物者進入 Lovesac 接觸點，親自體驗我們的產品。這加強了我們對真正的全渠道商業模式的承諾，滿足客戶選擇與我們互動的地方。

In fiscal '23, we gained over 130,000 new customers and our first year purchase margin was up double digits from fiscal '22. Importantly, our full first year customer lifetime value CAC ratio continued to increase versus fiscal '22 in spite of some headwinds in cost inflation throughout the year.

在 23 財年，我們獲得了超過 130,000 名新客戶，我們第一年的採購利潤率比 22 財年增長了兩位數。重要的是，儘管全年成本通脹存在一些不利因素，但與 22 財年相比，我們第一年的完整客戶生命週期價值 CAC 比率繼續增加。

Included in our measure of customer lifetime value is actually only the first purchase plus any repeat business within the same fiscal year. We more than breakeven at the first purchase, and we know our customers do repeat, adding to or upgrading their Designs For Life Sactionals or Sacs for decades.

我們衡量客戶生命週期價值的指標實際上只是第一次購買加上同一財年內的任何重複業務。我們在第一次購買時就達到了盈虧平衡，而且我們知道我們的客戶幾十年來一直在重複、添加或升級他們的 Designs For Life Sactionals 或 Sacs。

Our repeat business increased to 38% of overall transactions from 35% at the end of fiscal '22. We perceive these ROI metrics on our overall top and bottom line performance to be at the highest range of performance in the home in many other categories. We are proud of these results, especially when they were strong like this before the pandemic during and even after the pandemic.

我們的重複業務從 22 財年末的 35% 增加到總交易的 38%。我們認為這些 ROI 指標對我們整體頂線和底線表現的影響在許多其他類別的家庭中處於最高水平。我們為這些結果感到自豪，尤其是當它們在大流行之前甚至大流行之後如此強大時。

For fiscal '24, we will deploy new marketing tactics and notable endeavors that include continuing to invest in high ROI performing programs such as search and continuing to grow our hyper-local marketing to drive relevant traffic to our touch points. We will also be leveraging prime and linear TV buys to continue to drive reach, and we expect to spend at a rate of 12% of net sales in fiscal '24, in line with last year.

對於 24 財年，我們將部署新的營銷策略和顯著的努力，包括繼續投資於搜索等高投資回報率執行計劃，並繼續發展我們的超本地營銷以將相關流量吸引到我們的接觸點。我們還將利用黃金和線性電視購買來繼續擴大覆蓋範圍，我們預計 24 財年的支出占淨銷售額的 12%，與去年持平。

We also maintained our strong focus on ESG priorities, publishing our second annual ESG report in December of '22, where we outlined long-term targets for diversity, equity and inclusion, the road map to reach zero emissions by 2040, new ESG targets in focus areas we designate as earth, love and purpose among other items. Along these lines, in fiscal '23, we repurposed more than 70 million plastic bottles, into upholstery fabrics of our Sactionals and Sacs. And to date, we have diverted more than 179 million plastic bottles from the waste stream. We believe we have diverted thousands of couches from the landfill as well, given the extremely durable and adaptable nature of Sactional.

我們還繼續高度關注 ESG 優先事項，於 2022 年 12 月發布了我們的第二份年度 ESG 報告，其中我們概述了多元化、公平和包容性的長期目標、到 2040 年實現零排放的路線圖、新的 ESG 目標我們將重點領域指定為地球、愛和目的等項目。按照這些思路，在 23 財年，我們將超過 7000 萬個塑料瓶重新用於我們的 Sactionals 和 Sacs 的裝飾織物。迄今為止，我們已經從廢物流中轉移了超過 1.79 億個塑料瓶。鑑於 Sactional 極其耐用和適應性強的特性，我們相信我們也已經從垃圾填埋場轉移了數千張沙發。

And then lastly, making disciplined infrastructure investments. In fiscal '23, we made critical investments and enhanced our best-in-class supply chain, including opening our fifth third-party operated DC in the Fort Worth area. And this was fully at scale by the end of the fourth quarter and ahead of our target.

最後，進行有紀律的基礎設施投資。在 23 財年，我們進行了重大投資並加強了我們一流的供應鏈，包括在沃思堡地區開設了第五個第三方運營的配送中心。到第四季度末，這已經完全達到規模，超過了我們的目標。

We also invested in technology, talent and working capital to ensure best-in-class delivery times in a highly volatile supply chain environment. In fiscal '24, our investment for growth will be primarily in the areas of technology and research and development to continue to fuel our flywheel.

我們還投資於技術、人才和營運資金，以確保在高度不穩定的供應鏈環境中實現一流的交付時間。在 24 財年，我們的增長投資將主要集中在技術和研發領域，以繼續為我們的飛輪提供動力。

This year, we also expect to sustain our customer satisfaction by delivering orders in just days while also delivering inventory productivity improvements of around 20%, enabled by our recent investments.

今年，我們還希望通過在短短幾天內交付訂單來維持我們的客戶滿意度，同時通過我們最近的投資將庫存生產率提高約 20%。

This will have significant effects on the efficiency of working capital as well as associated cost reductions across inbound freight and warehousing, which we will start to see in the second half of the year following our upcoming launch.

這將對營運資本的效率以及入境貨運和倉儲的相關成本降低產生重大影響，我們將在即將推出的下半年開始看到這一點。

So in summary, we are very pleased with our fourth quarter results to cap a very strong year for the Lovesac brand against a difficult backdrop. We made strong progress on our strategic priorities as we continue to successfully expand the business. and make important foundational investments to drive as well as support the substantial growth that lies ahead in fiscal '24 and beyond.

因此，總而言之，我們對第四季度的業績感到非常高興，在困難的背景下為 Lovesac 品牌度過了非常強勁的一年。隨著我們繼續成功擴展業務，我們在戰略重點方面取得了長足進步。並進行重要的基礎投資，以推動和支持 24 財年及以後的大幅增長。

I will now pass the call over to Donna to review our quarter 4 and fiscal '23 results and our outlook to fiscal '24. Donna?

我現在將把電話轉給唐娜，讓她審查我們第 4 季度和 23 財年的業績以及我們對 24 財年的展望。唐娜？

Thank you, Mary, and good morning, everyone. I will begin my remarks with a review of our fourth quarter results and then discuss our outlook for fiscal 2024.

謝謝你，瑪麗，大家早上好。我將首先回顧我們的第四季度業績，然後討論我們對 2024 財年的展望。

Net sales increased $42.6 million or 21.7% to $238.8 million in the fourth quarter of fiscal 2023, with the year-over-year increase driven by growth in all channels. This increase was stronger than what we had originally projected for the quarter, primarily driven by higher-than-planned Internet net sales.

2023 財年第四季度淨銷售額增長 4260 萬美元或 21.7% 至 2.388 億美元，同比增長受到所有渠道增長的推動。這一增長強於我們最初對本季度的預測，這主要是受互聯網淨銷售額高於計劃的推動。

Showroom net sales increased $24.1 million or 20.5% to $141.9 million in the fourth quarter of fiscal 2023 as compared to $117.8 million in the prior year period. The increase in showroom net sales was driven by an increase of 10.2% in comparable showroom sales related to strong holiday promotional campaigns and the net addition of 44 new showrooms and 5 kiosks compared to the prior year period.

2023 財年第四季度，展廳淨銷售額增加 2410 萬美元或 20.5% 至 1.419 億美元，而去年同期為 1.178 億美元。展廳淨銷售額的增長是由於與去年同期相比，強勁的假日促銷活動以及 44 個新展廳和 5 個售貨亭淨增加的可比展廳銷售額增長了 10.2%。

As a reminder, point-of-sale transactions that we reflect in our comparable sales metric represents orders placed through our showroom, which does not always reflect the point at which control transfers to the customer and when net sales are recorded.

提醒一下，我們在可比銷售指標中反映的銷售點交易代表通過我們的陳列室下達的訂單，這並不總是反映控制權轉移給客戶的時間點以及記錄淨銷售額的時間點。

Internet net sales increased $16 million or 26.5% to $76.4 million in the fourth quarter of fiscal 2023 as compared to $60.4 million in the prior year period, driven by a strong holiday promotional campaign. Other net sales, which includes pop-up-shop, shop-in-shop and barter inventory transactions increased $2.4 million or 13.3% to $20.5 million in the fourth quarter of fiscal 2023 as compared to $18.1 million in the prior year period.

2023 財年第四季度互聯網淨銷售額增長 1600 萬美元或 26.5% 至 7640 萬美元，而去年同期為 6040 萬美元，這主要得益於強勁的假日促銷活動。其他淨銷售額，包括快閃店、店中店和易貨庫存交易，在 2023 財年第四季度增長 240 萬美元或 13.3% 至 2050 萬美元，而去年同期為 1810 萬美元。

The increase was largely driven by continued planned open-boxed returned inventory transactions with ICON, our inventory barter partner. We hosted an additional 33 new Costco in-store pop-up-shops and we continued to operate 22 Best Buy shop-in-shops.

這一增長主要是由於與我們的庫存易貨合作夥伴 ICON 繼續計劃的開箱退貨庫存交易推動的。我們新增了 33 家 Costco 店內快閃店，並繼續經營 22 家 Best Buy 店中店。

As a reminder, our inventory transactions with ICON are part of our C2C DFL and ESG initiatives. We repurposed returned open-box inventory in exchange for media credits which are being used to support our advertising initiatives to create brand awareness and drive net sales growth.

提醒一下，我們與 ICON 的庫存交易是我們 C2C DFL 和 ESG 計劃的一部分。我們重新利用退回的開箱庫存以換取媒體積分，這些積分用於支持我們的廣告計劃，以建立品牌知名度並推動淨銷售額增長。

Our current fiscal 2024 projections only reflect open-box inventory transactions in the first quarter as we continue to review all options available to align with our C2C DFL and ESG initiatives. Any of these initiatives beyond the first quarter will be upside to our fiscal 2024 projections.

我們目前的 2024 財年預測僅反映第一季度的開箱庫存交易，因為我們將繼續審查所有可用選項以符合我們的 C2C DFL 和 ESG 計劃。第一季度之後的任何這些舉措都將有利於我們對 2024 財年的預測。

By product category in the fourth quarter, our Sactional net sales increased 23.6%. Sacs net sales increased 6.9%. And other category net sales, which includes decorative pillows, blankets and other accessories, increased 10.7% over the prior year period.

按產品類別劃分，第四季度我們的銷售淨銷售額增長了 23.6%。 Sacs 淨銷售額增長 6.9%。其他類別的淨銷售額，包括裝飾枕頭、毛毯和其他配件，比上年同期增長 10.7%。

Gross margin increased 70 basis points to 56.6% of net sales in the fourth quarter of fiscal 2023 from 55.9% of net sales in the prior year quarter primarily driven by a decrease of approximately 190 basis points in total freight, partially offset by a decrease of 120 basis points in product margin. The decrease in total freight, which includes inbound and outbound freight and warehousing costs was principally related to a 290 basis point decrease in inbound container freight costs partially offset by 100 basis point increase due to higher outbound transportation costs in warehousing.

毛利率從去年同期占淨銷售額的 55.9% 增長 70 個基點至佔 2023 財年第四季度淨銷售額的 56.6%，這主要是由於總運費下降約 190 個基點，部分被運費下降所抵消產品利潤率 120 個基點。包括進出港運費和倉儲成本在內的總運費下降主要與進港集裝箱運費下降 290 個基點有關，但被出境運輸成本增加 100 個基點部分抵消。

The product margin decrease was driven by higher promotional discounting. Our gross margin rate came in slightly below our projections by 40 basis points due to lower deleverage in inbound freight than originally projected in the fourth quarter. Given the decrease in inbound freight rates, we continue to expect to see associated benefits, which will be modest in Q1 and most impactful in Q2 and Q3 of fiscal 2024.

產品利潤率下降是由於較高的促銷折扣所致。我們的毛利率略低於我們的預測 40 個基點，原因是第四季度入境貨運的去槓桿化程度低於最初預測。鑑於入境運費下降，我們繼續預計會看到相關收益，這在第一季度將是適度的，而在 2024 財年的第二季度和第三季度影響最大。

The 18.9% year-over-year increase in SG&A was driven by an increase in employment costs due to new hires and variable equity compensation, increases in rent expense related to the addition of 49 new touch points with higher percentage rent on showroom net sales, increase in technology and professional fees, and an increase in credit card fees related to increases in both sales volume as well as interest rates.

SG&A 同比增長 18.9%，這是由於新員工和可變股權薪酬導致的就業成本增加，與增加 49 個新接觸點相關的租金支出增加，租金佔展廳淨銷售額的百分比更高，技術和專業費用的增加，以及與銷量和利率增加相關的信用卡費用的增加。

SG&A expense as a percentage of net sales decreased by 60 basis points as we leveraged in areas, including infrastructure investments, selling-related expenses and employment costs even given the almost 22% sales increase.

SG&A 費用占淨銷售額的百分比下降了 60 個基點，因為我們在基礎設施投資、銷售相關費用和就業成本等領域發揮了槓桿作用，即使銷售額增長了近 22%。

Advertising and marketing expenses increased $300,000 or 1.2% to $25.8 million for the fourth quarter of fiscal 2023 as compared to $25.5 million in the prior year period. Advertising and marketing expenses were 10.8% of net sales in the fourth quarter of fiscal '23 as compared to 13% of net sales in the prior year period.

2023 財年第四季度廣告和營銷費用增加 300,000 美元或 1.2% 至 2580 萬美元，而去年同期為 2550 萬美元。廣告和營銷費用佔 23 財年第四季度淨銷售額的 10.8%，而去年同期占淨銷售額的 13%。

As a percentage of net sales, advertising and marketing decreased by 220 basis points due to improved performance in our media activities, which has driven an increase in net sales. As a reminder, advertising and marketing investments benefit multiple fiscal periods.

由於我們媒體活動的表現改善，廣告和營銷占淨銷售額的百分比下降了 220 個基點，這推動了淨銷售額的增長。提醒一下，廣告和營銷投資有利於多個會計期間。

Depreciation and amortization increased $535,000 from the prior year to $2.6 million, principally related to capital investments for new and remodeled showrooms. Operating income for the quarter was $38.1 million compared to $24.2 million in the fourth quarter of last year, driven by the factors just discussed.

折舊和攤銷較上年增加 535,000 美元，達到 260 萬美元，主要與新陳列室和改造陳列室的資本投資有關。本季度的營業收入為 3810 萬美元，而去年第四季度為 2420 萬美元，這主要受剛剛討論的因素驅動。

Net interest expense of $16,000 for the fourth quarter was slightly lower than the prior year period related to unused line of credit fees that increased due to the increase in our revolving line of credit earlier this year. Before we turn our attention to net income, net income per diluted share and adjusted EBITDA, please refer to the terminology and reconciliation between each of our adjusted metrics and their most directly comparable GAAP measurements in our earnings release issued earlier today.

第四季度的淨利息支出為 16,000 美元，略低於上年同期，這是由於今年早些時候我們循環信貸額度的增加導致未使用的信貸額度費用增加。在我們將注意力轉向淨收入、攤薄後每股淨收入和調整後的 EBITDA 之前，請參閱我們今天早些時候發布的收益報告中每項調整後指標與其最直接可比的 GAAP 衡量指標之間的術語和對賬。

Net income for the quarter was $27.6 million or $1.74 per diluted share compared to $32.6 million or $2.03 per diluted share in the prior year period. During the fourth quarter of fiscal 2023, the company recorded an income tax provision of $10.4 million as compared to an income tax benefit of $8.5 million in the fourth quarter of fiscal 2022.

本季度淨收入為 2760 萬美元或稀釋後每股收益 1.74 美元，而去年同期為 3260 萬美元或稀釋後每股收益 2.03 美元。在 2023 財年第四季度，公司錄得 1040 萬美元的所得稅撥備，而 2022 財年第四季度的所得稅收益為 850 萬美元。

The tax benefit recognized in the prior year was primarily due to the release of the valuation allowance on the company's net deferred tax assets in fiscal 2022. The release of the full valuation reserve had a positive impact on both the fourth quarter and the fiscal year 2022 earnings per diluted share.

上一年度確認的稅收優惠主要是由於釋放了公司 2022 財年淨遞延稅資產的估值備抵。釋放全部估值儲備對第四季度和 2022 財年均產生了積極影響每股攤薄收益。

Adjusted EBITDA for the quarter was $48.3 million as compared to $32 million in the prior year period. Adjusted EBITDA for the fourth quarter was ahead of our expectations driven by higher net sales and leveraging of SG&A and marketing expenses.

本季度調整後的 EBITDA 為 4830 萬美元，而去年同期為 3200 萬美元。第四季度調整後的 EBITDA 超出了我們的預期，這是由於更高的淨銷售額以及 SG&A 和營銷費用的槓桿作用。

Turning to our balance sheet. Our total merchandise inventory levels are in line with our projections and have leveled out as we had discussed on our prior call. Inventory increased 10.6% year-over-year and we feel exceptionally good about the quality and the quantity of our inventory.

轉向我們的資產負債表。我們的商品總庫存水平符合我們的預測，並且已經達到我們在之前的電話會議上討論過的水平。庫存同比增長 10.6%，我們對庫存的質量和數量感到非常滿意。

Our evergreen in-stock inventory is a competitive advantage, and it is not comprised of seasonal merchandise. We do not run the risk of being overstocked or having to be promotional to reduce inventory levels.

我們的常青庫存是一種競爭優勢，它不包含季節性商品。我們不會冒積壓或必須通過促銷來降低庫存水平的風險。

Our inventory levels are in line with our goals to maintain industry-leading in-stock positions and delivery times. As we move into fiscal 2024, inventory levels will moderate due to inbound freight relief and our technology investments, which enable us to programmatically allocate inventory more efficiently. We ended the fourth quarter with $43.5 million in cash and cash equivalents and $36 million in availability on our revolving line of credit with no borrowings.

我們的庫存水平符合我們保持行業領先的庫存位置和交貨時間的目標。隨著我們進入 2024 財年，由於入境運費減免和我們的技術投資，庫存水平將有所緩和，這使我們能夠以編程方式更有效地分配庫存。第四季度末，我們的現金和現金等價物為 4350 萬美元，循環信貸額度為 3600 萬美元，沒有借款。

This reflects the timing of our inventory investments and the seasonality of our net sales, profitability and cash generation. Please refer to our earnings press release for other details on our fourth quarter and fiscal year 2023 financial performance. Now moving to our outlook.

這反映了我們庫存投資的時機以及我們的淨銷售額、盈利能力和現金產生的季節性。有關我們第四季度和 2023 財年財務業績的其他詳細信息，請參閱我們的收益新聞稿。現在轉向我們的展望。

For fiscal '24, we expect the difficult macro backdrop to persist. Against this backdrop, we continue to expect to outperform our category and gain share primarily driven by our planned innovation and touchpoint growth. For the year, we expect net sales of $700 million to $740 million, driven by the net planned opening of approximately 30 new showrooms and total comparable sales in the high single-digit to low double-digit range.

對於 24 財年，我們預計困難的宏觀背景將持續存在。在此背景下，我們繼續期望在我們計劃的創新和接觸點增長的推動下跑贏我們的類別並獲得份額。今年，我們預計淨銷售額將達到 7 億至 7.4 億美元，這主要受淨計劃開設約 30 個新陳列室和可比銷售額處於高個位數至低兩位數範圍內的推動。

Our outlook embeds the expectation that the new product introduction that Shawn and Mary discussed will launch in the second half of the year and does not include any assumption for open-box inventory-related barter revenues beyond the first quarter, which was approximately $22 million in net sales for Q2 through Q4 and fiscal 2023.

我們的展望包含了 Shawn 和 Mary 討論的新產品介紹將在今年下半年推出的預期，並且不包括第一季度之後開箱庫存相關易貨收入的任何假設，該收入約為 2200 萬美元第二季度至第四季度以及 2023 財年的淨銷售額。

We expect adjusted EBITDA margin for the year to be to 8% to 9%, with the year-over-year decline driven by our investments in payroll, technology and research and development, that support current and future growth as well as the impact of higher interest rates on credit card fees.

我們預計今年調整後的 EBITDA 利潤率將達到 8% 至 9%，同比下降的原因是我們對工資、技術和研發的投資，這些投資支持當前和未來的增長以及信用卡費用的利率更高。

Deleverage across these areas of SG&A is expected to be only partially offset by gross margin expansion resulting from inbound freight due to lower container costs. Earnings per share are expected to be in the range of $1.83 to $2.24 with a weighted average diluted share count of 16.4 million shares.

SG&A 這些領域的去槓桿化預計只會部分被集裝箱成本降低導致的入境貨運毛利率擴張所抵消。每股收益預計在 1.83 美元至 2.24 美元之間，加權平均攤薄股數為 1640 萬股。

Additionally, fiscal 2024 will contain a 53rd week in the fourth quarter, which is expected to contribute approximately $6 million in net sales, $400,000 in adjusted EBITDA and $0.02 in EPS, which is reflected in our fiscal 2024 guidance.

此外，2024 財年第四季度將包含第 53 週，預計將貢獻約 600 萬美元的淨銷售額、400,000 美元的調整後 EBITDA 和 0.02 美元的每股收益，這反映在我們的 2024 財年指引中。

For the first quarter, we expect net sales of $133 million to $136 million, being driven by the planned opening of approximately 16 showrooms and a total comparable sales decrease in the 3% to 5% range. As a reminder, we are up against our toughest comp comparison of the year in the first quarter, given our Q1 comp last year was 42%.

對於第一季度，我們預計淨銷售額為 1.33 億美元至 1.36 億美元，這是受計劃開設約 16 個展廳和可比銷售額下降 3% 至 5% 的推動。提醒一下，我們在第一季度面臨著今年最艱難的比較，因為我們去年第一季度的比較是 42%。

We expect adjusted EBITDA loss in the $4 million to $5 million range, driven by an expected gross margin decline of approximately 100 basis points and SG&A deleverage primarily in payroll, rent and credit card fees. Loss per share is expected to be between $0.36 and $0.37 for the first quarter with 15.2 million weighted average shares outstanding.

我們預計調整後的 EBITDA 虧損將在 400 萬至 500 萬美元之間，這是由於預計毛利率下降約 100 個基點以及主要在工資、租金和信用卡費用方面的 SG&A 去槓桿化。第一季度每股虧損預計在 0.36 美元至 0.37 美元之間，加權平均流通股為 1520 萬股。

We are making important investments in the business to support current and future growth, including the new product introduction discussed. These investments are critical to our ability to drive long-term growth and sustained market share gains. We are also investing from a position of strength when it comes to our balance sheet.

我們正在對該業務進行重要投資，以支持當前和未來的增長，包括所討論的新產品介紹。這些投資對於我們推動長期增長和持續市場份額增長的能力至關重要。在資產負債表方面，我們也在從優勢地位進行投資。

We ended the year with $43 million of cash on the balance sheet and $36 million of availability under our ABL and no borrowings. With the second half of our year traditionally being the strongest in net sales, the timing of our new touch point openings and new product launches and our planned flow of inbound inventory, we expect to use cash during the first 3 quarters of the year before generating substantial free cash flow in the fourth quarter to end the fiscal 2024 with a significantly higher year-over-year cash balance and no borrowings under the ABL.

到年底，我們的資產負債表上有 4300 萬美元的現金，ABL 下的可用現金為 3600 萬美元，並且沒有借款。由於我們今年下半年傳統上是淨銷售額最強勁的時候，我們新接觸點開放和新產品發布的時間以及我們計劃的入境庫存流量，我們預計在今年前三個季度使用現金，然後再產生到 2024 財年第四季度的大量自由現金流，現金餘額同比顯著增加，並且 ABL 下沒有借款。

So in conclusion, we are very pleased with how we finished fiscal 2023. Despite the challenging macro environment and inflationary impacts, our team continues to execute our growth strategies and operate the business with discipline. We are braced for what promises to be a dynamic fiscal 2024, and we'll continue to prioritize disciplined execution to drive long-term growth, market share gains and value for all of our stakeholders. With that, we would now like to turn the call back to the operator who can open it up for questions. Operator?

因此，總而言之，我們對我們完成 2023 財年的方式感到非常滿意。儘管宏觀環境充滿挑戰和通貨膨脹影響，我們的團隊繼續執行我們的增長戰略並有紀律地經營業務。我們已做好準備迎接充滿活力的 2024 財年，我們將繼續優先考慮紀律嚴明的執行，以推動長期增長、市場份額增長和所有利益相關者的價值。有了這個，我們現在想把電話轉回給可以打開它提問的接線員。操作員？

(Operator Instructions)

（操作員說明）

Our first question is from Brian Nagel with Oppenheimer.

我們的第一個問題來自 Brian Nagel 和 Oppenheimer。

Nice quarter, congratulations. So the question I have -- and I'll kind of merge 2 questions together. First off, with regard to gross margins, and Shawn and Donna, you both mentioned, I guess, improving dynamics as the year progresses and particularly in Q2.

不錯的季度，恭喜。所以我的問題 - 我會把 2 個問題合併在一起。首先，關於毛利率，Shawn 和 Donna，你們都提到，我猜，隨著時間的推移，尤其是在第二季度，動態會有所改善。

Of course, I have a question, could you help us better size how much that the kind of magnitude of that headwind to tailwind dynamic for Lovesac? And then philosophically, I know we've discussed it in the past, but as these costs begin to moderate, is there any -- will there be some type of reinvestment in that? Or would you allow to kind of renormalize?

當然，我有一個問題，你能幫助我們更好地衡量 Lovesac 的逆風到順風動態的大小嗎？然後從哲學上講，我知道我們過去已經討論過，但是隨著這些成本開始下降，是否有任何 - 是否會有某種類型的再投資？或者你會允許重新規範化嗎？

And then the second question I have, just on sales, and you mentioned a number of times, just the overall more challenging backdrop. If I look at the growth rates -- recognizing there's some noise here. But the growth rates in Q4 were better than what they were in Q3. Did something from a macro perspective ease up or improve at all for you?

然後我有第二個問題，關於銷售，你提到了很多次，只是整體更具挑戰性的背景。如果我看一下增長率——認識到這裡有一些噪音。但第四季度的增長率好於第三季度。從宏觀角度來看，是否有什麼事情對您有所緩解或改善？

No, we can't hear. 1 minute.

不，我們聽不到。 1分鐘。

Brian, it's Mary. I think Donna is having an issue with her phone. So apologies for that delay. So let me take the second question while I get back on in terms of your point in terms of sales for Q4, obviously, we were thrilled to see the improvements.

布賴恩，是瑪麗。我認為 Donna 的手機有問題。對這次延誤深表歉意。所以讓我回答第二個問題，同時我回到你關於第四季度銷售的觀點，顯然，我們很高興看到這些改進。

When we talked to you at the beginning of December, at that point, we were tracking -- I think we shared with you, at the high end of our guidance. December and January were stronger than we had expected. And in particular, it's actually driven by our e-commerce business that I think Donna has called out.

當我們在 12 月初與您交談時，當時我們正在跟踪——我想我們在我們的指導的高端與您分享。 12 月和 1 月比我們預期的要強勁。特別是，它實際上是由我認為 Donna 呼籲的我們的電子商務業務推動的。

So with that -- plus also we saw a good uptick. We had a New Year's Eve flash sale and a couple of other promotional cases, which really did deliver the out performance that we saw. So very happy to see the performance kind of translate through to that quarter 4 results that you saw.

因此，加上我們也看到了良好的增長。我們舉辦了除夕夜限時搶購活動和其他一些促銷活動，確實實現了我們所看到的出色表現。非常高興看到性能轉化為您看到的第 4 季度結果。

And I think particularly like e-commerce, we outperformed the industry by over 4,600 basis points. We've just relaunched our configurator for e-commerce with an amazing digital experience. We're seeing conversion up, traffic up. So just all of the fundamentals as well as everything else that we saw in the business in our touch points, et cetera, really drove great performance.

我認為特別是電子商務，我們的表現優於行業 4,600 多個基點。我們剛剛重新啟動了我們的電子商務配置器，帶來了驚人的數字體驗。我們看到轉化率上升，流量上升。因此，我們在接觸點等業務中看到的所有基本面以及其他一切都真正推動了出色的性能。

I think then in terms of the question that you had in terms of on gross margin. So in Q2 onwards, we do see, I think, just over 240 basis points improvement from inbound freight. And then, Donna, I think you can touch on. We have a little bit of a headwind, Brian, with outbound freight, but Donna, maybe I'll hand it you for that.

我認為就你在毛利率方面提出的問題而言。因此，從第二季度開始，我認為我們確實看到入境運費提高了 240 多個基點。然後，唐娜，我想你可以談談。布賴恩，我們在出境貨運方面遇到了一些不利因素，但是唐娜，也許我會把它交給你。

Yes. Hopefully. Brian, can you hear me?

是的。希望。布賴恩，你能聽到我說話嗎？

Yes, I can hear you fine.

是的，我能聽到你的聲音。

Okay. Good. I don't know. Technology. Yes. So as Mary mentioned, we do see -- we do plan in all the guidance that we provided earlier about 340 basis point leverage or tailwind on inbound freight costs.

好的。好的。我不知道。技術。是的。因此，正如瑪麗提到的那樣，我們確實看到了——我們確實在我們之前提供的所有指導中計劃了大約 340 個基點的槓桿作用或入站貨運成本的順風。

But there's about 100 basis points of headwind that's netting up against that, that related to increase in outbound and warehousing, which would be everything around warehousing labor just operating costs in total. As I said, we're going to use this year specifically that net gain of about 240 basis points is going to help mitigate some of the investments in our future -- continued investments in our future that you see in some of the deleverage around SG&A.

但是，有大約 100 個基點的逆風抵消了這一點，這與出境和倉儲的增加有關，這將是圍繞倉儲勞動力的一切，只是總的運營成本。正如我所說，我們今年將專門使用約 240 個基點的淨收益，這將有助於減輕我們未來的一些投資——你在圍繞 SG&A 的一些去槓桿化中看到的對我們未來的持續投資.

So this year, it's helping mitigate some of those investments. And we would hope as we go into future years out as we continue to grow and get the continued deleverage, which we'll probably see a little bit more or the leverage, I should say, on inbound freight costs we will see going into fiscal '25 as well. But right now, there's about 340 basis points of leveraging related to inbound freight in the guidance that we've provided.

所以今年，它幫助減少了其中的一些投資。我們希望隨著我們進入未來幾年，我們將繼續增長並獲得持續的去槓桿化，我們可能會看到更多的槓桿作用，或者我應該說，我們將看到對入境貨運成本的影響進入財政'25也是如此。但現在，在我們提供的指南中，與入境貨運相關的槓桿率約為 340 個基點。

Our next question is from Thomas Forte with D.A. Davidson.

我們的下一個問題來自 Thomas Forte 和 D.A.戴維森。

Shawn, Mary, Donna, Jack, a great quarter, great year. So for my one question, Shawn, I'm going to use my one-year question for your current thoughts on international expansion.

肖恩、瑪麗、唐娜、傑克，一個偉大的季度，偉大的一年。所以對於我的一個問題，Shawn，我將使用我一年的問題來了解你目前對國際擴張的想法。

Yes. We are very excited by the prospects of international expansion. We hold our patents and trademarks all over the world, and we intend to get there. But likely not this year, we are very focused on the opportunity domestically.

是的。我們對國際擴張的前景感到非常興奮。我們在世界各地擁有我們的專利和商標，我們打算實現這一目標。但今年可能不會，我們非常關注國內的機會。

We've done a fair amount of research to understand the opportunity internationally, understand the size of the prize. And frankly, we have barely scratched the surface in terms of what we think we can do against the total available market just in the United States just in the categories we compete in now, and that's definitely the best use of investment dollars in the near term.

我們已經進行了大量研究，以了解國際機會，了解獎金的規模。坦率地說，就我們認為在我們現在競爭的類別中我們可以針對美國的整個可用市場做些什麼而言，我們幾乎沒有觸及表面，這絕對是近期投資資金的最佳用途.

And so we'll continue to focus on the U.S. We'll continue to gain market share, we believe. And -- but we do look forward to international expansion sometime in the future.

因此，我們將繼續關注美國。我們相信，我們將繼續獲得市場份額。而且 - 但我們確實期待在未來某個時候進行國際擴張。

Our next question is from Maria Ripps with Canaccord.

我們的下一個問題來自 Maria Ripps 和 Canaccord。

Congrats on strong results. So it seems like your guidance factors in some level of conservatism. Are you noticing any changes in consumer trends or purchase behavior sort of over the past few months as inflation has been decelerating, but the broader sort of macro environment remains highly uncertain?

祝賀取得優異成績。所以看起來你的指導因素在某種程度上是保守主義的。您是否注意到過去幾個月隨著通貨膨脹率一直在下降，消費者趨勢或購買行為有任何變化，但更廣泛的宏觀環境仍然高度不確定？

And maybe related to that, given that your products carry a higher price point, how has your design for life philosophy been resonating with consumers in this macro environment?

也許與此有關，鑑於您的產品具有更高的價格點，您的設計生活理念在這種宏觀環境下如何與消費者產生共鳴？

Thank you for your questions. I'll take the first one and then I think Shawn will talk a bit more around Designed For Life. So I think as we've shared before, we do see varying shifts in how our customers are transacting, how they're experiencing our brands.

謝謝你的問題。我會選擇第一個，然後我認為 Shawn 會更多地談論 Designed For Life。所以我認為正如我們之前分享的那樣，我們確實看到客戶的交易方式、他們體驗我們品牌的方式發生了不同的變化。

But actually, of late, we're seeing more stabilization. So the high end continues to be strong. AOV has been strong. At the low end, we sometimes see a little bit of shift in terms of configuration size and so forth. I would say the one clear trend that we are seeing is a little bit more of an uptick on Lovesac credit card, why we factored in fully for the year.

但實際上，最近，我們看到了更多的穩定性。所以高端繼續走強。 AOV 一直很強勁。在低端，我們有時會看到配置大小等方面的一些變化。我想說的是，我們看到的一個明顯趨勢是 Lovesac 信用卡的增長略有上升，這就是為什麼我們將這一年全部考慮在內。

So you know that. And then I think -- our customer traffic continues to be very strong. And I think we saw that in quarter 4. And I think that just bodes well to the strength of our flywheel because whether it be 38% of our customers aren't even cross-shopping with anyone, it just goes back to the strength of the brand continuing.

所以你知道的。然後我想——我們的客戶流量仍然非常強勁。我認為我們在第 4 季度看到了這一點。而且我認為這預示著我們飛輪的力量，因為無論是 38% 的客戶甚至沒有與任何人交叉購物，它都可以追溯到品牌延續。

So as you called out, we've baked in the conservatism for this year, but as we have a strong line of sight for the year from the very exciting innovation that we talked about that's launching halfway through this year. That really will cause us to widen significantly our aperture to gain even more share through to the touchpoint expansions that continue to overperform pro forma with amazing economics and then the marketing machine that we have around just the share gains of customer lifetime value with incredible CAC ratio, performances that you just don't see anywhere else.

所以正如你所說的那樣，我們今年已經陷入了保守主義，但由於我們從今年中旬推出的非常令人興奮的創新中看到了今年的強烈前景。這真的會讓我們顯著擴大我們的視野，通過接觸點擴展獲得更多份額，這些擴展繼續以驚人的經濟效益超越備考，然後我們擁有的營銷機器只是以令人難以置信的 CAC 比率獲得客戶生命週期價值的份額收益，您在其他任何地方都看不到的表演。

So all baked in -- but obviously, with pragmatism to the macros and the team's agility, we'll continue to reflect in how we think about everything. And then I think, Shawn, do you want to answer the first -- the second question Maria had as well?

所以一切都融入了——但顯然，憑藉對宏觀的實用主義和團隊的敏捷性，我們將繼續反思我們對一切的看法。然後我想，Shawn，你想回答 Maria 提出的第一個 - 第二個問題嗎？

Yes. I think that in this environment, we feel really confident based on what we're seeing. Clearly, we're already into the first quarter of our new year.

是的。我認為在這種環境下，我們根據所見所聞感到非常自信。顯然，我們已經進入了新年的第一季度。

And we're all watching the same news and we recognize that the consumer is under pressure in many respects. But our design for life products and business model, we think, has resilience that others don't. So while we're not seeing the 50% and 60% kind of growth we saw for a few years past. We're seeing stronger growth in the rest of the category.

我們都在看同樣的新聞，我們認識到消費者在許多方面都承受著壓力。但我們認為，我們的生活產品和商業模式設計具有其他人所沒有的彈性。因此，雖然我們沒有看到過去幾年看到的 50% 和 60% 的增長。我們看到其他類別的增長更為強勁。

This has been a trend in the entire time, before the pandemic, through the pandemic, post pandemic, and here we are today. And we feel really good about that. And I think that many onlookers question why that is. And I think the biggest, most glaring answer to that is our product.

在大流行之前、大流行期間、大流行之後，一直到今天，這一直是一種趨勢。我們對此感覺非常好。我認為許多旁觀者質疑為什麼會這樣。我認為最大、最明顯的答案是我們的產品。

We have a very different product and the rest of the category. It's Designed For Life, built to last a lifetime, designed to evolve. This resonates with people who have a brain, who can do the math and understand that they are investing in something that can be with them the rest of their lives, and we're very proud of that.

我們有一個非常不同的產品和其他類別。它專為生活而設計，經久耐用，旨在進化。這引起了有頭腦的人的共鳴，他們可以做數學並且明白他們正在投資可以伴隨他們餘生的東西，我們為此感到非常自豪。

With that said, the evidence, I think is apparent not just in our results -- financial results, but we have experienced recently the highest rate of customer satisfaction we've seen. And this is through all of this choppiness and through all of the supply chain choppiness and here we are on the other side of that.

話雖如此，我認為證據不僅在我們的結果中很明顯 - 財務結果，而且我們最近經歷了我們所見過的最高客戶滿意度。這是通過所有這些動盪和所有供應鏈的動盪而發生的，而在這裡我們處於另一邊。

And I think it shows our investments that we've made in the infrastructure of the business and our team bearing fruit. And that will, again, further strengthen the flywheel of people spreading the word of mouth about the Lovesac brand, about our Designed For Life products. And we intend to continue to take massive market share, particularly in this environment when others are beleaguered in various ways.

我認為這表明我們在業務基礎設施和我們的團隊取得成果方面的投資。這將再次加強人們傳播關於 Lovesac 品牌和我們為生活而設計的產品的口碑的飛輪。我們打算繼續佔據巨大的市場份額，尤其是在其他人以各種方式陷入困境的環境中。

And so we feel really confident about our product, about our brand, the way that we've wrapped it around the Designed For Life ethos, what, of course, it means for the environment, and everything that we stand for.

因此，我們對我們的產品、我們的品牌、我們將其圍繞 Designed For Life 精神進行包裝的方式、當然，它對環境的意義以及我們所代表的一切都充滿信心。

Our next question is from Matt Koranda with ROTH MKM.

我們的下一個問題來自 Matt Koranda 和 ROTH MKM。

Nice job on the quarter. Just wanted to see if you could provide any commentary on growth by channel that's embedded in the fiscal '24 outlook. Just for example, in terms of showroom comps versus location expansion that's embedded in the outlook?

本季度幹得好。只是想看看您是否可以通過嵌入在 24 財年展望中的渠道提供任何關於增長的評論。舉個例子，就陳列室比較與嵌入在前景中的位置擴展而言？

And then curious if you're going to grow across online and the other channels as well? And then how are you factoring in StealthTech attach rates? I noticed the data point you shared suggest that stealth attach rates are probably in the high teens plus this last year. There's probably maybe some improvement there, but just curious if you're factoring that into the fiscal '24 outlook.

然後很好奇您是否要通過在線和其他渠道實現增長？那麼你如何考慮 StealthTech 附加率？我注意到你分享的數據點表明隱形附加率可能在去年加上這個數字。那裡可能會有一些改善，但只是好奇您是否將其納入 24 財年展望。

Thank you for your questions. I'll take the StealthTech one and then Donna can talk a little bit about the mix for the year. So yes, obviously, StealthTech, we've had in market just over a year. And whilst we always are very excited about the performance I shared earlier in terms of the growth and particularly where we see the long-term runway and all of the success that we've had, we have built in for continued growth, both in terms of just overall AOV in the business as well as also attracting new customers because one of the great advantages we saw last year, and I think in quarter 4 our customer traffic was up nearly 18%.

謝謝你的問題。我會選擇 StealthTech，然後 Donna 可以談談今年的組合。所以，是的，很明顯，StealthTech，我們已經上市一年多了。雖然我們總是對我之前分享的增長表現感到非常興奮，特別是在我們看到長期跑道和我們已經取得的所有成功的地方，但我們已經為持續增長做好了準備，無論是在業務中的整體 AOV 以及吸引新客戶，因為這是我們去年看到的巨大優勢之一，我認為在第 4 季度我們的客戶流量增長了近 18%。

It was really driven -- as new customers came in to drive to test this new technology, this new experience and really pick, hear and feel it. So we're continuing to plan for that to grow, I shared earlier that we expect it to be over $100 million as the brand continues to build out in our flywheel.

它真的是被驅動的——當新客戶進來開車測試這項新技術、這種新體驗並真正地挑選、聽到和感受它時。所以我們繼續計劃讓它增長，我之前分享過，隨著品牌繼續在我們的飛輪中發展，我們預計它會超過 1 億美元。

And I think one of the great successes is the marketing strength. And if you look at the customer acquisition costs, just the ratio just continues to improve, it just really does enable us to be able to continue to share the message about what we see as the best home audio system in the market with an amazing experience coupled with our Sacs love. And then Donna, I think do you want to touch on the channel mix for the year?

我認為最大的成功之一是營銷實力。如果你看一下客戶獲取成本，只是這個比率在不斷提高，它確實讓我們能夠繼續分享我們認為市場上最好的家庭音響系統的信息，並帶來驚人的體驗再加上我們囊中之愛。然後 Donna，我想你想談談今年的頻道組合嗎？

Yes. So for the channel mix, we are projecting both Internet and showrooms to increase year-over-year relative to all the things we discussed to showrooms, product innovation. The one channel, which I specifically called out is the other channel, which right now, we're not projecting because of the returned box inventory transactions.

是的。因此，對於渠道組合，我們預計互聯網和陳列室相對於我們討論的陳列室、產品創新的所有內容都會同比增長。我特別提到的一個渠道是另一個渠道，現在，由於退回的盒子庫存交易，我們沒有預測。

That was about $22 million that we're not -- today has not been built into being repeated in any of our guidance. So that's the one channel just by removing the inventory -- those barter inventory transactions that in our current projections is not projected to increase. But the other -- the Costco and the Best Buy within the other channel is -- but in total, the other channel is not projecting to increase just because of the extraction of those inventory -- barter inventory transactions.

那是我們沒有的大約 2200 萬美元——今天在我們的任何指導中都沒有被重複。因此，這是僅通過刪除庫存的一個渠道——我們目前預測的那些易貨庫存交易預計不會增加。但另一個——好市多和百思買在另一個渠道內——但總的來說，另一個渠道預計不會僅僅因為這些庫存的提取而增加——易貨庫存交易。

So showroom increasing, Internet increasing. Obviously, we look at it all as omni-channel. So -- it's increasing in total and it's increasing separately as well. And the other channels just as a highlight, because of the return boxed inventory transactions not currently being reprojected to happen again. Through Q2, through Q4, that is coming down slightly. But Costco and Best Buy increasing year-over-year within that channel. Hopefully, that helps.

所以陳列室越來越多，互聯網越來越多。顯然，我們將其視為全渠道。所以 - 它總體上在增加，它也在單獨增加。而其他渠道恰恰成為亮點，因為退貨盒裝庫存交易目前未被重新預測再次發生。從第二季度到第四季度，這個數字略有下降。但 Costco 和 Best Buy 在該渠道內的銷售額同比增長。希望這會有所幫助。

Our next question is from Alex Fuhrman with Craig-Hallum Capital Group.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Alex Fuhrman。

I wanted to ask about the increasing lifetime value to customer acquisition cost ratios, which is really impressive and counterintuitive, I think, given everything going on with the economy and high inflation and interest rates.

我想問一下不斷增加的生命週期價值與客戶獲取成本的比率，我認為這確實令人印象深刻且違反直覺，考慮到經濟的發展以及高通脹和高利率。

So curious what's been driving that? Has it been more about more efficient customer acquisition? Or is it more as you add more product that you're seeing more of an increase in the lifetime value over time? Or maybe you're seeing it from both sides of it. But any color you can give us there would be very helpful.

很好奇是什麼推動了它？它更多的是關於更有效的客戶獲取嗎？還是隨著您添加更多產品，您會看到生命週期價值隨著時間的推移增加更多？或者，也許您從它的兩面都看到了它。但是你能給我們的任何顏色都會很有幫助。

Yes. Great. Thank you, Alex. And -- yes, equally, we're very thrilled to see results that we just don't see from anyone else. And I think what's really also exciting is that you get full payback just from the first transaction or more.

是的。偉大的。謝謝你，亞歷克斯。而且 - 是的，同樣，我們很高興看到我們從其他人那裡看不到的結果。而且我認為真正令人興奮的是，您僅從第一筆交易或更多交易中就獲得了全部回報。

And we only use, I think, as we talk, the first fiscal year of purchases. And we know they come back to us for decades. And I think as I shared our repeat business is actually up to 38% of our transactions, so we are getting much more efficient in terms of customer acquisition.

我認為，在我們談話時，我們只使用採購的第一個財政年度。我們知道他們回來找我們幾十年了。我認為正如我分享的那樣，我們的重複業務實際上占我們交易的 38%，因此我們在客戶獲取方面變得更加高效。

The team do a great job, whether it be hyper local marketing through to just the optimization of search along the year and even just sharing out the awareness of the brand all the way through to acquisition. I think the second piece that we really have seen a benefit is as we advance into other categories, expand our total addressable market. As you know, StealthTech is part of our effort and the creative that we do alongside Sactional.

該團隊做得很好，無論是超級本地營銷，還是全年的搜索優化，甚至只是分享品牌知名度，一直到收購。我認為我們真正看到的第二個好處是，隨著我們進入其他類別，擴大我們的總目標市場。如您所知，StealthTech 是我們努力的一部分，也是我們與 Sactional 一起做的創意。

Just think of that, you literally get the advertising for free. So as we continue in our flywheel expansion, going into new categories over time and everything that we've shared, you can just start to see even more of the efficiency opportunities that will continue. And the team has done a great job. There's been some inflation, but they continue to optimize, shift and really manage the mix incredibly well. And we're very proud of all of their hard work because we really do see that big industry leading.

試想一下，您實際上是免費獲得廣告的。因此，隨著我們繼續飛輪擴展，隨著時間的推移進入新類別以及我們共享的所有內容，您可以開始看到更多將繼續存在的效率機會。團隊做得很好。出現了一些通貨膨脹，但他們繼續優化、轉變並真正很好地管理組合。我們為他們的辛勤工作感到非常自豪，因為我們確實看到了這個大行業的領先地位。

We have reached the end of our question-and-answer session. I would like to turn the conference back over to Shawn Nelson for closing comments.

我們的問答環節已經結束。我想將會議轉回 Shawn Nelson 以發表閉幕評論。

Yes. We'd like to thank all of the amazing Lovesac associates who have made these results come to pass and thank our investors as well for supporting the company. And we're off to another great year at Lovesac.

是的。我們要感謝所有讓這些結果成為現實的 Lovesac 員工，並感謝我們的投資者對公司的支持。我們將在 Lovesac 度過又一個美好的一年。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開您的線路，感謝您的參與。