Lovesac Co (LOVE) 2024 Q1 法說會逐字稿

Greetings, and welcome to the Lovesac First Quarter Fiscal 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rachel Schacter of ICR. Thank you. Please go ahead.

您好，歡迎參加 Lovesac 2024 財年第一季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，ICR 的 Rachel Schacter。謝謝。請繼續。

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

謝謝。大家，早安。與我一起參加電話會議的是首席執行官肖恩·尼爾森 (Shawn Nelson)；瑪麗·福克斯，總裁兼首席運營官；和首席財務官唐娜·戴洛莫 (Donna Dellomo)。在我們開始之前，我想提醒您，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。其中包括有關我們未來預期、財務預測以及我們的計劃和前景的聲明。實際結果可能與此類聲明中提出的結果存在重大差異。要討論這些風險和不確定性，您應該查看該公司向 SEC 提交的文件，其中包括今天的新聞稿。您不應依賴我們的前瞻性陳述作為對未來事件的預測。

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. 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 measures to such non-GAAP financial measure has been provided as supplemental financial information in our press release.

我們在本次電話會議中做出的所有前瞻性陳述均基於截至目前的假設和信念，我們不承擔更新這些陳述的義務，除非適用法律要求。我們今天的討論將包括非公認會計準則財務指標，包括 EBITDA 和調整後 EBITDA。這些非公認會計原則措施應作為我們公認會計原則結果的補充，而不是替代或孤立於我們的公認會計原則結果。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 財務指標的調節表作為補充財務信息。

Now I'd like to turn the call over to Shawn Nelson, Chief Executive Officer of The Lovesac Company.

現在我想將電話轉給 Lovesac 公司首席執行官肖恩·尼爾森 (Shawn Nelson)。

Thank you, Rachel. Good morning, everyone, and thank you for joining us today. Today, I will start by reviewing the highlights of our first quarter fiscal 2024 performance and then briefly provide an update on our operational accomplishments and outlook. Then Mary Fox, our President and COO, will update you on the progress we made against our strategic initiatives this quarter. And finally, Donna Dellomo, our CFO, will review our financial results and a few other items related to our outlook in more detail.

謝謝你，雷切爾。大家早上好，感謝您今天加入我們。今天，我將首先回顧我們 2024 財年第一季度的業績亮點，然後簡要介紹我們的運營成就和前景的最新情況。然後，我們的總裁兼首席運營官瑪麗·福克斯 (Mary Fox) 將向您介紹本季度我們的戰略舉措所取得的最新進展。最後，我們的首席財務官唐娜·戴洛莫 (Donna Dellomo) 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。

We are pleased with our first quarter results that beat expectations even amidst a challenging macro backdrop and against our toughest comparison of the year in the first quarter. Elevated inflation and higher interest rates continued to drive a more cautious consumer, pressuring the home category overall. We are not immune from these headwinds. But as evidenced by our consistent and reliable results, we have significant advantages versus the broader category, which I will expound upon in a moment.

我們對第一季度的業績感到滿意，即使在充滿挑戰的宏觀背景下，也與我們今年最艱難的第一季度相比，我們的第一季度業績仍超出了預期。通脹上升和利率上升繼續促使消費者更加謹慎，給整體家居類別帶來壓力。我們也不能倖免於這些不利因素。但正如我們一致且可靠的結果所證明的那樣，與更廣泛的類別相比，我們具有顯著的優勢，我稍後將對此進行闡述。

We are confident that our unique business model and product designs allow us to continue to outperform the category, which was down 20% in the first quarter as reported by our data sources and start contrast to our sales growth and positive comps.

我們相信，我們獨特的商業模式和產品設計使我們能夠繼續跑贏該類別，根據我們的數據源報告，該類別在第一季度下降了 20%，並與我們的銷售增長和積極的業績對比開始形成鮮明對比。

Now let me review the highlights of our first quarter performance. Total sales were $141.2 million, up 9.1% versus the prior year period. We delivered total comparable sales of 15.1%, which was better than expected, driven by the timing of our marketing campaigns, even as we lapped a very strong Q1 comp last year of 42%.

現在讓我回顧一下我們第一季度業績的亮點。總銷售額為 1.412 億美元，比去年同期增長 9.1%。由於我們的營銷活動時機的推動，我們的總可比銷售額達到了 15.1%，這比預期要好，儘管我們去年第一季度的可比銷售額達到了 42%，非常強勁。

Given the plan for gross margin pressure this quarter and some SG&A deleverage, we've continued to prudently invest in the business to support long-term prospects. Adjusted EBITDA was a loss of $2.4 million for the quarter, which Mary and Donna will discuss along with our financial performance in more detail.

考慮到本季度毛利率壓力的計劃以及一些銷售、管理和行政費用去槓桿化，我們繼續謹慎投資該業務，以支持長期前景。該季度調整後的 EBITDA 虧損 240 萬美元，瑪麗和唐娜將更詳細地討論我們的財務業績。

We made good progress on our operational initiatives this quarter meant to strengthen our infinity flywheel. The uniqueness of our top-quality products and overall concept continues to drive strong word-of-mouth benefits with customers becoming our most fervent advocates, continually propelling this flywheel. This is especially beneficial in a macro environment such as this one. Mary will discuss in detail the progress on specific growth strategies, but by far, the key Q1 accomplishment with the in showroom launch of our new angled side, roughly 2 months ahead of our internal schedule.

本季度我們在旨在加強無限飛輪的運營舉措方面取得了良好進展。我們優質產品和整體理念的獨特性繼續帶來強大的口碑優勢，客戶成為我們最熱心的擁護者，不斷推動這個飛輪。這在這樣的宏觀環境中尤其有利。瑪麗將詳細討論具體增長戰略的進展，但到目前為止，第一季度的關鍵成就是在展廳內推出了我們新的斜面，比我們的內部計劃提前了大約 2 個月。

This is the new product launch that we teased last quarter. The angled side for Sactionals seems innocuous enough. But our concerted research efforts show us that this particular addition to the Sactionals family can drive significant upside for Sactionals amongst new and existing customers. We believe, based on the numbers, Sactionals is already the #1 best-selling couch design in America right now. But new introductions like this one layered onto our proprietary platform, only widen our moat and there are many more to come.

這是我們上季度預告的新產品發布。 Sactionals 的傾斜面似乎無害。但我們一致的研究工作表明，Sactionals 系列的這一特殊補充可以為 Sactionals 在新老客戶中帶來顯著的增長。我們相信，根據數據，Sactionals 已經成為美國目前排名第一的最暢銷沙發設計。但是，像這樣的新推出是在我們的專有平台上進行的，只會拓寬我們的護城河，而且還會有更多的推出。

Style is obviously a critical component when it comes to winning in home decor. Sactionals are far and away the most functional design in the marketplace as we continue to innovate on more functional add-ons to come. There are aesthetic ways for the platform to evolve as well like this one that can offer customers in the consideration phase, greater choice and control.

風格顯然是贏得家居裝飾的關鍵因素。隨著我們不斷創新更多功能附加組件，Sactionals 無疑是市場上最實用的設計。該平台有一些美學的發展方式，就像這樣，可以為處於考慮階段的客戶提供更多的選擇和控制。

Initial sales rates confirm this hypothesis, and we look forward to seeing the entire Sactionals platform of products continue to take market share and grow, even as business in the overall macro category is shrinking at the moment. We expect to see continued growth in what is a gigantic $41 billion upholstery category, of which even with our market share gains, we still have only captured very low single-digit penetration.

初始銷售率證實了這一假設，我們期待看到整個 Sactionals 產品平台繼續佔據市場份額並增長，儘管目前整個宏觀類別的業務正在萎縮。我們預計價值 410 億美元的巨大室內裝飾類別將持續增長，即使我們的市場份額有所增長，我們仍然只獲得了非常低的個位數滲透率。

As with all Designed for Life product platform expansion, the angled side can be added to any Sactionals collection ever sold and is available from the outset with StealthTech Sound + Charge as an option. Our Designed for Life way of managing product platform is revolutionary in product design and branding. The result is not only through sustainability, products that can actually sustain but a satisfying brand experience. This builds extreme levels of trust between our brand and our customers. And that is the point, we are building a brand that people love. This is the unlock for sustained future value to our shareholders.

與所有“Designed for Life”產品平台擴展一樣，傾斜側面可以添加到任何已售出的 Sactionals 系列中，並且從一開始就可以選擇 StealthTech Sound + Charge。我們的“為生活而設計”的產品平台管理方式在產品設計和品牌推廣方面是革命性的。其結果不僅是通過可持續性、能夠真正維持的產品，而且是令人滿意的品牌體驗。這在我們的品牌和客戶之間建立了極高的信任度。這就是重點，我們正在打造一個人們喜愛的品牌。這是為我們的股東帶來持續的未來價值的解鎖。

We will continue to invent and innovate in this unique way forever, both on existing Sacs, Sactionals and StealthTech platforms and in other categories yet to be announced where home meets tech.

我們將繼續以這種獨特的方式進行發明和創新，無論是在現有的 Sacs、Sactionals 和 StealthTech 平台上，還是在家居與科技相遇的其他尚未宣布的類別上。

Looking at the remainder of the year, we expect the macro environment to remain challenging, pressuring the home category. We also expect our trajectory of relative outperformance versus the category to continue. Given this backdrop, we remain highly cautious operationally as we continue to control expenses very tightly, making investments very prudently. Our strong debt rebalance sheet continues to position us well to navigate in this environment.

展望今年剩餘時間，我們預計宏觀環境仍將充滿挑戰，給家居類別帶來壓力。我們還預計我們相對於該類別的相對優異表現的軌跡將繼續下去。在此背景下，我們在運營上保持高度謹慎，繼續嚴格控制費用，非常謹慎地進行投資。我們強大的債務再平衡表繼續使我們能夠在這種環境中順利度過。

While we are pleased with our Q1 outperformance, we are reiterating our full year outlook at this time with some sharpening for Q2, which Donna will discuss. The Memorial Day time frame was strong for us, beating last year. Remember, our net sales figures align closely with real-time sales demand. We have virtually no realized revenue from backlog as we typically ship directly to the customer just days from when their order is placed.

雖然我們對第一季度的優​​異表現感到滿意，但我們此時重申了我們的全年展望，並對第二季度進行了一些調整，唐娜將對此進行討論。陣亡將士紀念日的時間框架對我們來說很強勁，超過了去年。請記住，我們的淨銷售額數據與實時銷售需求密切相關。我們實際上沒有從積壓訂單中實現收入，因為我們通常在客戶下訂單後幾天內直接發貨給客戶。

We remain in stock of all key items because of the advantages of our platform-based approach and the SKU efficiencies afforded us by our evergreen inventory. We continue to put up the strongest demand members in the category that we are aware of. The competitive landscape is highly promotional at the moment, but we have been holding the line on promotions in general, while higher than the abnormally low levels exhibited last year. We are still not back to pre-pandemic promotional levels and our ability to continue these share gains with promotional intensity that is well below the competition speaks to the real demand for our products. We are not just selling generic furniture to people when they're looking for furniture in the marketplace.

由於我們基於平台的方法的優勢以及常青庫存為我們提供的 SKU 效率，我們仍然保留所有關鍵商品的庫存。我們將繼續在我們所知道的類別中提供最強烈的需求會員。目前競爭格局非常激烈，但我們總體上一直堅持促銷，但高於去年異常低的水平。我們仍然沒有回到大流行前的促銷水平，我們以遠低於競爭對手的促銷強度繼續這些份額增長的能力說明了對我們產品的真正需求。當人們在市場上尋找家具時，我們不僅僅是向他們出售通用家具。

On that note, it is important for investors to understand one key reason why Lovesac demand remains so strong versus the competition and why management remains confident at least, cautiously optimistic in this environment. We sell value products. This is widely misinterpreted because of our product's high sticker price. Our Sacs, which look like giant bean bags sell for more than $1,000 on average. Sactionals, which are the majority of our sales are priced at the high end for upholstery to be sure.

在這一點上，投資者必須了解為什麼洛夫薩克的需求相對於競爭對手仍然如此強勁，以及為什麼管理層在這種環境下至少保持信心和謹慎樂觀的一個關鍵原因。我們銷售有價值的產品。由於我們產品的標價較高，這一點被廣泛誤解。我們的 Sacs 看起來像巨型豆袋，平均售價超過 1,000 美元。可以肯定的是，Sactional 占我們銷售的大部分，其內飾價格處於高端。

The typical first Sactionals purchase averages around $5,000 and it is not at all in common to see transactions in the $10,000, $15,000 and even $20,000 range on a daily basis, especially since the introduction of StealthTech. But this customer is a value customer. They are choosing to spend quite a bit of money with us because of all the value we designed into the product and platform. These are adaptable, upgradable, changeable and watchful products. They are uniquely durable, built to last a lifetime and designed to evolve with our customers throughout their lives.

典型的首次 Sactionals 購買價格平均約為 5,000 美元，每天的交易額在 10,000 美元、15,000 美元甚至 20,000 美元範圍內並不常見，尤其是自從推出 StealthTech 以來。但這個客戶是一個有價值的客戶。由於我們在產品和平台中設計的所有價值，他們選擇與我們一起花費相當多的錢。這些是適應性強、可升級、可變且警惕的產品。它們具有獨特的耐用性，可終生使用，並旨在與我們的客戶一生一起發展。

Our fundamental quality and commensurate lifetime guarantee cannot be beat by any competitor. Furthermore, we are a couch specialist and the strongest one in the marketplace at that. We have significant scale now. We estimate that our Sactionals business alone to be larger than many of our furniture generalist competitors' entire upholstery businesses across all of their disparate upholstery SKU.

我們的基本質量和相應的終身保修是任何競爭對手都無法比擬的。此外，我們是沙發專家，也是市場上最強大的專家。我們現在已經有了很大的規模。我們估計，僅我們的 Sactionals 業務就比我們的許多家具綜合競爭對手的所有不同室內裝飾 SKU 的整個室內裝飾業務還要大。

Unlike furniture generalists, however, the couch category operates on slightly different dynamics than the home decor market broadly. The #1 driver of couch replacement behavior is old or worn out couches, not new home sales, relocation or even remodels. Even in a recession, couches [wear out.] It doesn't make us recession-proof, but it is still a much better dynamic than being in the furniture business as a generalist at times like these. Not to mention the inventory implications alone, these advantaged Lovesac.

然而，與家具通才不同的是，沙發類別的運作動態與整個家居裝飾市場略有不同。沙發更換行為的第一大驅動因素是舊的或破舊的沙發，而不是新房銷售、搬遷甚至改造。即使在經濟衰退時期，沙發也會[磨損]。它並不能讓我們免受經濟衰退的影響，但它仍然比在這樣的時候作為一個多面手在家具行業中更有活力。更不用說僅對庫存的影響，這些對洛夫薩克來說都是有利的。

On top of that, we maintain constant contact with our customer base because every single Lovesac customer made their purchase directly with us, never through a distributor. Our platform-based approach to innovation allows us to introduce new add-ons with regularity from StealthTech to the brand-new angled side to changeable covers and smaller accessories that we introduce regularly.

最重要的是，我們與客戶群保持持續聯繫，因為每個 Lovesac 客戶都是直接向我們購買的，而不是通過經銷商。我們基於平台的創新方法使我們能夠定期推出新的附加組件，從 StealthTech 到全新的傾斜側面，再到我們定期推出的可更換外殼和較小的配件。

If Designed for Life platform approach and outreach programs drive our repeat business to constitute roughly 40% of our transactions ongoing, we have chosen to blaze a trail in this category, utilizing this differentiated value proposition from all of our competitors [paired] with a proven, effective and efficient go-to-market strategy as evidenced by our many, many years of unrelenting growth and profitability.

如果“Designed for Life”平台方法和推廣計劃推動我們的回頭客業務約占我們正在進行的交易的 40%，那麼我們選擇在這一類別中開闢一條道路，利用我們所有競爭對手的差異化價值主張[配對]以及經過驗證的，有效和高效的進入市場策略，我們多年來的不懈增長和盈利能力證明了這一點。

As we look to the long term, we remain very confident in the future of the Lovesac brand for all of these reasons. We believe we have significant growth runway still ahead of us with a very robust pipeline of new products that we are designing to dominate the myriad home plus tech categories that we have yet to enter, but we perceive as ripe for disruption.

考慮到所有這些原因，從長遠來看，我們對 Lovesac 品牌的未來仍然充滿信心。我們相信，我們仍然有顯著的增長跑道，我們正在設計一系列非常強大的新產品，以主導我們尚未進入的無數家居和科技類別，但我們認為顛覆的時機已經成熟。

Before turning the call over to Mary, I'd like to thank the entire Lovesac team for their relentless efforts and execution of our strategies. This year is Lovesac's 25th anniversary. We will find ways to celebrate this milestone throughout the year to drive exposure and credibility. It is a significant milestone for us, not just because we've made it for this long, but because it really underscores our ability to stand behind our enduring products. It is reflective of the [sustain-ability] of our Designed for Life product platform. And it's not just about our long-term products. We are building a [sustain-able] organization quarter-by-quarter, year by profitable year, a business that can actually sustain. We have done so now for a very long time with a near spotless track record as a listed company, even as we've generated very high growth on an annual basis for many years now staffed with profitability. Regardless of the landscape, its ever-evolving management team maintains the highest ambitions.

在將電話轉給瑪麗之前，我要感謝整個 Lovesac 團隊的不懈努力和我們戰略的執行。今年是洛夫薩克成立 25 週年。我們將找到全年慶祝這一里程碑的方法，以提高曝光率和可信度。這對我們來說是一個重要的里程碑，不僅因為我們已經做到了這麼久，而且因為它確實強調了我們支持持久產品的能力。它反映了我們“為生活而設計”產品平台的[可持續性]。這不僅僅是我們的長期產品。我們正在逐個季度、逐年盈利地建立一個[可持續的]組織，一個真正能夠可持續發展的企業。我們已經這樣做了很長一段時間，作為一家上市公司，我們的業績記錄幾乎一塵不染，儘管我們多年來每年都實現了非常高的增長，現在已經具備了盈利能力。無論形勢如何，其不斷發展的管理團隊都保持著最高的抱負。

Our ultimate goals are lofty. We are totally committed to our decade-long vision, and we are focused on making sharp decision to continue to deliver sustained results, sustainable products and a truly sustainable brand. It should be obvious based on our track record, and we intend to make it continue that way.

我們的最終目標是崇高的。我們完全致力於實現十年的願景，並專注於做出明智的決定，以繼續提供持續的成果、可持續的產品和真正可持續的品牌。根據我們的記錄，這應該是顯而易見的，我們打算讓它繼續這樣下去。

To that end, I'd like to take a moment to address today's announcement of Donna's retirement and the appointment of our new CFO, Keith Siegner, I am thrilled to welcome Keith as our new CFO. With his proven track record and financial leadership, I look forward to the impact he will have in guiding our finance functions as we continue to scale the Lovesac business and brand.

為此，我想花點時間談談今天宣布的唐娜退休和任命我們的新首席財務官基思西格納，我很高興歡迎基思擔任我們的新首席財務官。憑藉他良好的業績記錄和財務領導力，我期待著他在我們繼續擴大 Lovesac 業務和品牌的同時，對指導我們的財務職能產生影響。

I also want to express how very grateful we are for Donna's contributions during her 6 years at Lovesac. She has been an amazing business partner throughout some of our most formative years. We have greatly benefited from her work ethic and professionalism, in leading our finance organization. I particularly want to highlight her invaluable contributions in helping us navigate the recent pandemic years as well as her leadership leading up to the 2018 IPO and subsequent transition to being a public company. We wish her all the best in her retirement.

我還想表達我們對唐娜在洛夫薩克 6 年期間所做貢獻的感激之情。在我們最具成長性的幾年裡，她一直是一位出色的商業夥伴。她在領導我們的財務組織時的職業道德和專業精神使我們受益匪淺。我特別想強調她在幫助我們應對最近的大流行病方面做出的寶貴貢獻，以及她在 2018 年 IPO 和隨後向上市公司轉型過程中的領導力。我們祝愿她退休後一切順利。

While this change is effective on June 30, Donna will be around for 1 year as a senior strategic adviser to ensure a smooth transition. In addition, I would like to extend my sincere thank you to Jack for his 7 years of service with the company, which includes his roles of President and Chief Operating Officer and more recently, Chief Strategy Officer. He has really been my business partner since joining Lovesac back in 2015.

雖然這一變動將於 6 月 30 日生效，但唐娜將擔任高級戰略顧問一年，以確保平穩過渡。此外，我謹向 Jack 表示誠摯的謝意，感謝他在公司 7 年的服務，其中包括擔任總裁兼首席運營官以及最近擔任的首席戰略官。自 2015 年加入 Lovesac 以來，他確實一直是我的業務合作夥伴。

Jack has played an instrumental role in transforming the company into a true omnichannel retailer by helping expand our physical touch points and digital platform as we continue to disrupt the industry. We wish him nothing but the best in his retirement and look forward to his continuing his service on the Board.

隨著我們繼續顛覆行業，傑克幫助擴大我們的物理接觸點和數字平台，在將公司轉變為真正的全渠道零售商方面發揮了重要作用。我們祝愿他退休後一切順利，並期待他繼續在董事會任職。

Gracefully, Mary has already proven to be an invaluable partner to me for this new chapter at Lovesac. She is awesome. Mary and I are both grateful to continue to have Jack's wisdom and judgment available to us through his continued role on the Board.

幸運的是，瑪麗已經證明她是我在洛夫薩克開啟新篇章的寶貴合作夥伴。她很棒。瑪麗和我都很感激傑克繼續在董事會中發揮作用，繼續為我們提供他的智慧和判斷力。

With that, I will now hand it over to Mary to cover our strategic priorities and progress. Mary?

現在，我將把它交給瑪麗，介紹我們的戰略重點和進展情況。瑪麗？

Thank you, Shawn, and good morning, everyone. We are pleased with our first quarter results that beat expectations with industry-leading growth against the difficult macro backdrop. As Shawn said, while the industry is seeing pressure, we continue to outperform as we execute against our strategic initiatives driven by our customer product-centric focus, differentiated omnichannel business model and unique Infinity flywheel.

謝謝你，肖恩，大家早上好。我們對第一季度的業績感到滿意，該業績超出了預期，在困難的宏觀背景下實現了行業領先的增長。正如肖恩所說，雖然行業面臨壓力，但我們繼續執行以客戶產品為中心的重點、差異化的全渠道業務模式和獨特的 Infinity 飛輪驅動的戰略舉措，從而繼續表現出色。

Our net sales growth rate of 9.1% continues to be ahead of the category on a 1-year basis and is up 244.4% on a 4-year basis to give you a comparison to pre-pandemic levels, with an adjusted EBITDA margin increase of 980 basis points over the same 4-year time period. While we observed that customers are being more cautious with discretionary purchases and impacted by tightening credit in the first quarter, we continue to be encouraged by the strength of our brand metrics and market share gains fueled by our strong operational execution as evidenced in the KPIs we track closely.

我們的淨銷售額 1 年增長率為 9.1%，繼續領先於同類產品，4 年增長率為 244.4%，與大流行前的水平進行比較，調整後 EBITDA 利潤率增長了4 年同期上漲 980 個基點。雖然我們觀察到客戶對可自由支配的購買更加謹慎，並受到第一季度信貸緊縮的影響，但我們繼續對我們的品牌指標的實力和我們強大的運營執行力推動的市場份額的增長感到鼓舞，這一點在我們的 KPI 中得到了證明。密切跟踪。

We also continue to see best-in-class paybacks across our touch points and relatively consistent performance across our geographical market. We are uniquely positioned to continue to profitably take share even through the current market dynamics by continuing to make progress on our growth strategies and delivering great value through our Designed for Life platform at a time when this value matters to our customers more than ever.

我們還繼續在我們的接觸點上看到一流的回報，並在我們的地理市場上保持相對一致的表現。我們處於獨特的地位，即使在當前的市場動態下，我們也能繼續在增長戰略上取得進展，並通過我們的“為生活而設計”平台提供巨大的價值，在這種價值對我們的客戶比以往任何時候都更加重要的情況下，繼續盈利地佔據市場份額。

A few highlights on our go-forward plans for each of our strategic initiatives, all centered on infinity flywheel. Firstly, starting with product innovation, where we have very notable progress in Quarter 1 as Shawn discussed. Our highly anticipated new product introduction, the angled side soft launched in May in conjunction with our 25th anniversary brand campaign. The angled side addresses our biggest opportunity around barriers to purchase for our consumer as style is the #1 reason they [leave] our purchase funnel and angled side was the top scoring silhouette. This new introduction will enable us to continue to gain market share in this fragmented category. This product is currently only available in our showrooms, and we anticipate it will be available on our e-comm platform by the end of July with a full media campaign starting in August.

我們每項戰略舉措的前進計劃的一些亮點都以無限飛輪為中心。首先，從產品創新開始，正如肖恩所討論的，我們在第一季度取得了非常顯著的進展。我們備受期待的新產品推出，斜邊軟體於 5 月與我們的 25 週年品牌活動同時推出。斜邊解決了我們圍繞消費者購買障礙的最大機會，因為風格是他們[離開]我們購買渠道的第一大原因，而斜邊是得分最高的輪廓。這一新的推出將使我們能夠繼續在這個分散的類別中獲得市場份額。該產品目前僅在我們的陳列室出售，我們預計將於 7​​ 月底在我們的電子商務平台上出售，並於 8 月開始全面的媒體宣傳活動。

Innovation is an inherent part of our DNA at Lovesac. So we are excited for this launch and many more launches to come over the coming years. After the first few weeks of launching our angled side in showrooms, we are seeing immediate traction in KPIs, including quote and conversion as well as very positive feedback from customers on the design and how comfortable it is.

創新是 Lovesac DNA 的固有組成部分。因此，我們對此次發布以及未來幾年將推出的更多產品感到興奮。在陳列室推出斜邊的最初幾週後，我們看到 KPI 立即受到關注，包括報價和轉換，以及客戶對設計及其舒適度的非常積極的反饋。

Secondly, our omnichannel experience. We continue to execute as a true omnichannel retailer through a combination of our physical touch points and digital platform. During this quarter, we opened 16 showrooms and 1 Best Buy shop in shop. For the quarter, our e-commerce channel performance was very strong at 28.7% increase, well ahead of the category according to our estimates by over 5,300 basis points and ahead of our expectations. This strong performance has been driven from the customer experience improvements we made last year, delivering an increase in conversion and AOV. And then higher ROI from our digital programs versus last year.

其次，我們的全渠道經驗。我們繼續通過物理接觸點和數字平台的結合，作為真正的全渠道零售商來執行業務。本季度，我們開設了 16 個陳列室和 1 個百思買店中店。本季度，我們的電子商務渠道表現非常強勁，增長了 28.7%，根據我們的估計，遠遠領先於該類別 5,300 個基點以上，也超出了我們的預期。這種強勁的業績得益於我們去年所做的客戶體驗改進，帶來了轉化率和 AOV 的增加。我們的數字計劃的投資回報率比去年更高。

In terms of our Costco partnership, demand was up 5.6%, driven by physical road show point-of-sale transactions versus quarter 1 last year. Also importantly, as a result of our unique omnichannel experience, our customer satisfaction scores continue to improve and sequentially increased in quarter 1, especially for our digital experience and fulfillment stores.

就我們與 Costco 的合作關係而言，由於實體路演銷售點交易的推動，與去年第一季度相比，需求增長了 5.6%。同樣重要的是，由於我們獨特的全渠道體驗，我們的客戶滿意度分數在第一季度持續提高並連續上升，特別是對於我們的數字體驗和履行商店。

Thirdly, our ecosystem. This is centered around our efficient marketing, including our strong customer lifetime value and customer acquisition cost ratio with payback after the first purchase and word-of-mouth, which continues to drive brand awareness and an effective customer acquisition funnel. This year, we've begun deploying new marketing tactics that include continuing to invest in high ROI performing programs and growing hyperlocal marketing to drive relevant traffic to our touch points.

第三，我們的生態系統。這以我們高效的營銷為中心，包括我們強大的客戶終身價值和客戶獲取成本比，以及首次購買後的回報和口碑，這將繼續提高品牌知名度和有效的客戶獲取渠道。今年，我們開始部署新的營銷策略，包括繼續投資於高投資回報率績效計劃和發展超本地化營銷，以推動相關流量到達我們的接觸點。

We continue to drive new customer acquisition using vehicles such as direct mail campaigns. We've also begun leveraging prime and linear TV buys to continue to drive reach and to strengthen our brand love. And as Shawn mentioned, our 25th anniversary celebrity campaign is very successful, generating over 3 billion impressions to date, with coverage from Rolling Stone, Billboard, People, New York Times and many more.

我們繼續使用直郵活動等工具來推動新客戶的獲取。我們還開始利用優質和線性電視購買來繼續擴大影響力並加強我們的品牌喜愛度。正如 Shawn 提到的，我們的 25 週年名人活動非常成功，迄今為止產生了超過 30 億次展示，《滾石》、《公告牌》、《人物》、《紐約時報》等多家媒體都進行了報導。

We are also making good progress internally on our Circle to Consumer initiative on open-box inventory, which is focused on improving the executional effectiveness and the brand experience, and we will be sharing more details later this year. And finally, disciplined infrastructure investments.

我們在內部關於開箱庫存的“Circle to Consumer”計劃方面也取得了良好進展，該計劃的重點是提高執行效率和品牌體驗，我們將在今年晚些時候分享更多細節。最後，嚴格的基礎設施投資。

Despite the uncertain environment, we operate our business with a strong focus on growth and an ROI-driven investment discipline, and we believe it is important to prudently invest in the business for the near and long term. This year, our investments for growth will be primarily in the areas of technology and research and development to continue fueling our flywheel. AI is an important area for our investment, and we have recently begun a pilot providing generative AI-guided experiences to our customer-facing service associates. So early in our results, we're seeing great promise in this initiative and the potential to enhance the overall customer experience.

儘管環境充滿不確定性，我們在經營業務時仍高度重視增長和投資回報率驅動的投資紀律，我們認為謹慎投資近期和長期業務非常重要。今年，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。人工智能是我們投資的一個重要領域，我們最近開始了一項試點，為面向客戶的服務人員提供生成式人工智能引導體驗。在我們的早期成果中，我們看到了這一舉措的巨大前景以及增強整體客戶體驗的潛力。

As previously mentioned, we expect this year to reinforce our customer satisfaction by continuing to deliver orders in just days while also delivering inventory productivity improvements of 20% enabled by our recent investments and the teams are making good progress on this initiative. We expect 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 this year.

如前所述，我們預計今年將繼續在短短幾天內交付訂單，同時通過我們最近的投資將庫存生產力提高 20%，從而增強客戶滿意度，並且團隊在這一計劃方面取得了良好進展。我們預計這將對營運資金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，我們將在今年下半年開始看到這一點。

So in summary, we are pleased to have reported results ahead of expectations amidst a challenging environment. We are very proud of our team and their continued execution against our strategic initiatives, which enables the continued strengthening of our competitive positioning and powers our infinity flywheel.

總而言之，我們很高興在充滿挑戰的環境中提前報告了結果。我們為我們的團隊以及他們對我們戰略舉措的持續執行感到非常自豪，這使得我們的競爭地位不斷加強，並為我們的無限飛輪提供動力。

I also wanted to really thank Jack and Donna for their incredible partnership, and I am very happy that we will continue to work together in their new capacities. And I'm also really looking forward to work with Keith.

我還要衷心感謝杰克和唐娜令人難以置信的合作夥伴關係，我很高興我們將在他們的新職位上繼續合作。我也非常期待與基思合作。

I will now pass the call over to Donna to review our quarter 1 results and our outlook for fiscal '24. Donna?

現在，我將把電話轉給唐娜，讓她回顧我們第一季度的業績和 24 財年的前景。唐娜？

Thank you, Mary, and good morning, everyone. I will begin my remarks with a review of our first quarter results and then discuss our outlook for fiscal 2024. Net sales increased $11.8 million or 9.1% to $141.2 million in the first quarter of fiscal 2024, with the year-over-year increase driven by growth in all channels. This increase was stronger than what we had projected for the quarter, primarily driven by higher-than-planned Internet net sales due to strong promotional campaigns, which pulled forward some internal projected demand from Q2 into Q1.

謝謝你，瑪麗，大家早上好。我將首先回顧我們第一季度的業績，然後討論我們對 2024 財年的展望。在同比增長的推動下，2024 財年第一季度的淨銷售額增加了 1180 萬美元，即 9.1%，達到 1.412 億美元。通過所有渠道的增長。這一增長強於我們對本季度的預期，主要是由於強勁的促銷活動導致互聯網淨銷售額高於計劃，這將一些內部預計需求從第二季度提前到了第一季度。

Showroom net sales increased $2.3 million or 2.9% to $83.6 million in the first quarter of fiscal 2024 as compared to $81.3 million in the prior year period. The increase in showroom net sales was driven by an increase of 8.4% in comparable showroom sales related to higher point-of-sale transactions with higher promotional discounting than the prior year and a net addition of 49 new showrooms compared to the prior year period.

2024 財年第一季度，陳列室淨銷售額增長 230 萬美元，即 2.9%，達到 8360 萬美元，而上年同期為 8130 萬美元。展廳淨銷售額的增長是由於可比展廳銷售額增長 8.4%，這與銷售點交易量增加、促銷折扣高於上年有關，以及與上年同期相比淨增加 49 個新展廳有關。

As a reminder, point-of-sale transactions that we reflect in our comparable sales metric represents orders placed through our showrooms, which does not always reflect the point at which control transfers to the customer and when the net sales are recorded. Internet net sales increased $8.9 million or 28.7% to $40.2 million in the first quarter of fiscal 2024 as compared to $31.3 million in the prior year period.

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。 2024 財年第一季度互聯網淨銷售額增長 890 萬美元，即 28.7%，達到 4020 萬美元，而上年同期為 3130 萬美元。

Other net sales, which include pop-up-shop, shop-in shop and open-box inventory transactions increased $500,000 or 3.1% to $17.4 million in the first quarter of fiscal 2024 as compared to $16.9 million in the prior year period. The increase was largely driven by 95 in-store Costco pop-up-shops that generated $4 million of net sales that we did not have in Q1 last year as we only reintroduced in-store pop-up-shops with Costco in the second quarter of fiscal 2023 as they had been put on hold due to COVID in March of 2020. This increase was also a result of a planned increase of approximately $1.4 million of open-box inventory transactions for $4 million in the first quarter of fiscal 2024 from $2.6 million in the first quarter of fiscal 2023. These increases were partially offset by lower productivity of our temporary online pop-up-shops on costco.com.

2024 財年第一季度的其他淨銷售額（包括快閃店、店中店和開箱庫存交易）增加了 50 萬美元，即 3.1%，達到 1,740 萬美元，而上年同期為 1,690 萬美元。這一增長主要是由 95 家 Costco 店內快閃店推動的，這些店產生了 400 萬美元的淨銷售額，這是我們去年第一季度沒有的，因為我們在第二季度才重新引入了 Costco 店內快閃店2023 財年的庫存交易因 2020 年 3 月的新冠肺炎疫情而被擱置。這一增長也是由於計劃將 2024 財年第一季度的開箱庫存交易從 2.6 美元增加到 400 萬美元，增加約 140 萬美元。 2023 財年第一季度的銷售額為 100 萬美元。這些增長被 Costco.com 上臨時在線快閃店生產力的降低部分抵消。

We opened 1 additional Best Buy shop in shop location compared to the prior year period. As a reminder, our open-box inventory transactions with ICON are part of our CTC, DFL and ESG initiatives. We are making great progress in reviewing all options for this return product that align with our sustainability goals. We expect some of these initiatives to go live beginning in Q2 and into the second half of the fiscal year. In the meantime, we may have some open-box inventory transactions with ICON to ensure our warehouses are operating as efficiently as possible, and we'll disclose any net sales on future calls in the event that they occur.

與去年同期相比，我們在商店所在地額外開設了 1 家百思買商店。謹此提醒，我們與 ICON 的開箱庫存交易是我們 CTC、DFL 和 ESG 計劃的一部分。我們在審查符合我們可持續發展目標的退貨產品的所有選項方面取得了巨大進展。我們預計其中一些舉措將從第二季度開始一直持續到本財年下半年。與此同時，我們可能會與 ICON 進行一些開箱庫存交易，以確保我們的倉庫盡可能高效地運營，如果發生這種情況，我們將在未來電話中披露任何淨銷售額。

By product category in the first quarter, our Sactionals net sales increased 11.2%. Sacs net sales decreased 10% and our other category net sales, which includes decorative pillows, blankets and other accessories, increased 4.2% over the prior year period. Gross margin decreased 100 basis points to 50.1% of net sales in the first quarter of fiscal 2024 from 51.1% of net sales in the prior year quarter, primarily driven by a decrease of 120 basis points in product margin, driven by planned higher promotional discounting than the prior year, partially offset by a decrease of approximately 20 basis points in total distribution and related tariff expenses. The slight decrease in total distribution and related tariff expenses over the prior year is principally related to 170 basis points inbound transportation benefit from decreased container costs, partially offset by 150 basis points in higher outbound transportation and warehousing costs due to higher FedEx rates and the expansion of our warehouse network.

按產品類別劃分，第一季度我們的 Sactionals 淨銷售額增長了 11.2%。 Sacs 淨銷售額下降 10%，而我們其他類別的淨銷售額（包括裝飾枕頭、毯子和其他配件）比上年同期增長 4.2%。 2024 財年第一季度毛利率下降 100 個基點，占淨銷售額的 50.1%，從去年同期淨銷售額的 51.1% 下降，主要是由於計劃提高促銷折扣導致產品利潤率下降 120 個基點與上年相比，部分被總分銷和相關關稅費用減少約 20 個基點所抵消。總配送和相關關稅費用較上年略有下降，主要是由於集裝箱成本下降帶來的170個基點的入境運輸效益，部分被聯邦快遞費率上升和擴張導致的出境運輸和倉儲成本增加150個基點所抵消。我們的倉庫網絡。

As shared with you on our fourth quarter earnings call, we expected to see modest benefits related to the decrease in inbound freight rates in Q1 and the benefits to be most impactful in Q2 and Q3 of fiscal 2024. The 26.6% year-over-year increase in SG&A was primarily related to an increase in employment costs, overhead expenses, sales-related expenses and rent. Employment costs increased by $5.9 million, driven by an increase in new hires in fiscal 2023.

正如我們在第四季度財報電話會議上與您分享的那樣，我們預計將看到與第一季度入境運費下降相關的適度效益，以及在 2024 財年第二季度和第三季度影響最大的效益。同比增長 26.6% SG&A 的增加主要與僱傭成本、管理費用、銷售相關費用和租金的增加有關。由於 2023 財年新員工增加，僱傭成本增加了 590 萬美元。

Overhead expenses increased $2.9 million, with the majority of this increase or $1.6 million related to computer expense investments in our new point-of-sale system to support current and future growth. Rent increased by $1.4 million, principally related to the rent for the additional 49 net showroom. SG&A expense as a percentage of net sales increased by 560 basis points, primarily due to planned deleverage within employment costs, selling-related expenses, rent and continued investments to support current and future growth.

管理費用增加了 290 萬美元，其中大部分增加或 160 萬美元與我們新銷售點系統的計算機費用投資有關，以支持當前和未來的增長。租金增加了 140 萬美元，主要與新增 49 個淨陳列室的租金有關。 SG&A 費用占淨銷售額的百分比增加了 560 個基點，主要是由於計劃對就業成本、銷售相關費用、租金和持續投資進行去槓桿化，以支持當前和未來的增長。

Advertising and marketing expenses increased $1 million or 6.4% to $16.9 million for the first quarter of fiscal 2024 as compared to $15.9 million in the prior year period. Advertising and marketing expenses were 12% of net sales in the first quarter of fiscal '24 as compared to 12.3% of net sales in the prior year period. As a reminder, advertising and marketing investments benefit multiple fiscal periods.

2024 財年第一季度廣告和營銷費用增加 100 萬美元，即 6.4%，達到 1690 萬美元，而上年同期為 1590 萬美元。 2024 財年第一季度，廣告和營銷費用占淨銷售額的 12%，而上年同期占淨銷售額的 12.3%。提醒一下，廣告和營銷投資有益於多個財政週期。

Depreciation and amortization increased $100,000 from the prior year to $2.8 million, principally related to capital investments for new and remodeled showrooms. Operating loss for the quarter was $5.9 million compared to operating income of $2.6 million in the first quarter of last year, driven by the factors just discussed.

折舊和攤銷較上年增加 10 萬美元，達到 280 萬美元，主要與新建和改建展廳的資本投資有關。受剛才討論的因素影響，本季度營業虧損為 590 萬美元，而去年第一季度的營業收入為 260 萬美元。

Net interest income was $300,000 for the first quarter as compared to an interest expense of less than $50,000 for the prior year period. Interest income earned on our cash and cash equivalent balances was favorable from higher interest rates compared to the prior year period.

第一季度的淨利息收入為 300,000 美元，而去年同期的利息支出不到 50,000 美元。與上年同期相比，我們的現金和現金等價物餘額所賺取的利息收入因利率較高而有利。

Before we turn our attention to net loss income, net loss 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.

在我們將注意力轉向淨虧損收入、稀釋每股淨虧損收入和調整後 EBITDA 之前，請參閱今天早些時候發布的收益報告中的每個調整後指標與其最直接可比的 GAAP 衡量指標之間的術語和調節。

Net loss for the quarter was $4.2 million or $0.28 per diluted share, compared to net income of $1.9 million or $0.12 per diluted share in the prior year period. During the first quarter of fiscal 2024, we recorded an income tax benefit of $1.3 million as compared to a $700,000 tax provision for the first quarter of fiscal 2023. The change in the provision is primarily driven by the net loss for the quarter.

本季度淨虧損為 420 萬美元，即稀釋後每股 0.28 美元，而上年同期淨利潤為 190 萬美元，即稀釋後每股 0.12 美元。在 2024 財年第一季度，我們獲得了 130 萬美元的所得稅優惠，而 2023 財年第一季度的稅收撥備為 70 萬美元。撥備的變化主要是由該季度的淨虧損驅動的。

Adjusted EBITDA for the quarter was a loss of $2.4 million as compared to positive adjusted EBITDA of $6.4 million in the prior year period. Adjusted EBITDA for the first quarter was ahead of our expectations, principally driven by higher net sales.

本季度調整後 EBITDA 虧損 240 萬美元，而上年同期調整後 EBITDA 為正數 640 萬美元。第一季度調整後 EBITDA 超出了我們的預期，這主要是由於淨銷售額增加所致。

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 decreased 13% year-over-year and we feel exceptionally good about both the quality and the quantity of our inventory and our ability to maintain industry-leading in-stock positions and delivery time.

轉向我們的資產負債表。正如我們在之前的電話會議中所討論的那樣，我們的總商品庫存水平符合我們的預測，並且已經趨於平穩。庫存同比下降 13%，我們對庫存的質量和數量以及我們保持行業領先的庫存狀況和交貨時間的能力感到非常滿意。

As we move through fiscal 2024, inventory levels will continue to moderate due to inbound freight relief and our technology investments, which enable us to allocate inventory more efficiently. We ended the first quarter with $45.1 million in cash and cash equivalents and $36 million of availability on our revolving line of credit with no borrowing.

隨著 2024 財年的到來，由於入境貨運減免和我們的技術投資，庫存水平將繼續下降，這使我們能夠更有效地分配庫存。截至第一季度末，我們的現金和現金等價物為 4510 萬美元，循環信貸額度為 3600 萬美元，無借款。

We are pleased with our strong balance sheet and our cash position at the end of the first quarter. Please refer to our earnings press release for other details on our first quarter financial performance.

我們對第一季度末強勁的資產負債表和現金狀況感到滿意。有關我們第一季度財務業績的其他詳細信息，請參閱我們的收益新聞稿。

Now moving to our outlook. As you saw in our press release, we are reiterating our full year outlook for net sales of $700 million to $740 million, approximately 30 net new showrooms, total comps in the high single-digit to low double-digit range, adjusted EBITDA margins in the 8% to 9% range and earnings per share in the $1.83 to $2.24 range with a share count of 16.4 million weighted average diluted shares.

現在轉向我們的展望。正如您在我們的新聞稿中看到的，我們重申全年淨銷售額預期為 7 億至 7.4 億美元，淨新展廳約 30 個，總比較在高個位數到低兩位數範圍內，調整後 EBITDA 利潤率為每股收益在 8% 到 9% 之間，每股收益在 1.83 美元到 2.24 美元之間，加權平均稀釋股數為 1,640 萬股。

Given our strong results in Q1, factoring in our expected Q2 performance, our second half touch point expansion, the launch of our new innovation of angled side along with the accompanying media support, our 25th anniversary brand campaign and the additional 53rd week, we remain confident in our full year outlook. As a reminder, the 53rd week in the fourth quarter 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.

鑑於我們第一季度的強勁業績，考慮到我們預期的第二季度業績、下半年接觸點的擴展、斜邊新創新的推出以及伴隨的媒體支持、我們的 25 週年品牌活動和額外的第 53 週，我們仍然對我們的全年展望充滿信心。提醒一下，第四季度第 53 週預計將貢獻約 600 萬美元的淨銷售額、40 萬美元的調整後 EBITDA 和 0.02 美元的 EPS，這反映在我們的 2024 財年指導中。

For the second quarter, we expect net sales of $149 million to $151 million being driven by the planned opening of approximately 7 showroom and a total comparable sales increase in the 3% to 5% range. The second quarter decrease in comp sales from Q1 is a result of a shift in demand relating to promotional activity between Q1 and Q2, such that the first half total comps overall are within the range of expectations embedded in our full year outlook. As we have discussed before, we are up against the toughest comps in the first half of the year.

我們預計第二季度的淨銷售額將達到 1.49 億美元至 1.51 億美元，這主要得益於計劃開設約 7 個展廳以及總可比銷售額增長 3% 至 5%。第二季度的比較銷售額較第一季度有所下降，這是由於第一季度和第二季度之間與促銷活動相關的需求發生變化，因此上半年的總比較總體處於我們全年展望中的預期範圍內。正如我們之前討論過的，我們在今年上半年面臨著最艱難的競爭。

Our second quarter projections include open-box inventory transactions, which will be significantly less than the $9.6 million from the second quarter of last year and not more than our Q1 fiscal '24 open-box inventory net sales. We expect adjusted EBITDA of $1 million to $1.5 million, driven by an expected gross margin increase of 200 basis points, which will be more than offset by planned deleverage in marketing and advertising related to investments in test-and-learn initiatives, future innovation and events surrounding Lovesac's 25th anniversary brand building. In addition, the planned deleverage in SG&A, primarily in payroll, rent and credit card fees.

我們第二季度的預測包括開箱庫存交易，該交易將大大低於去年第二季度的 960 萬美元，並且不超過我們 24 年第一季度的開箱庫存淨銷售額。我們預計調整後的 EBITDA 為 100 萬至 150 萬美元，主要是由於預期毛利率增長 200 個基點，這將被計劃中的與測試和學習計劃、未來創新和投資相關的營銷和廣告去槓桿化所抵消。圍繞Lovesac 25 週年品牌建設的活動。此外，計劃去槓桿化的SG&A，主要是工資、租金和信用卡費用。

Loss per share is expected to be $0.12 to $0.16 for the second quarter with 15.2 million weighted average shares outstanding. We are continuing to make important investments in the business to support current and future growth. These investments are critical to our ability to drive long-term growth and sustained market share gains.

預計第二季度每股虧損為 0.12 至 0.16 美元，加權平均流通股數量為 1,520 萬股。我們將繼續對業務進行重要投資，以支持當前和未來的增長。這些投資對於我們推動長期增長和持續擴大市場份額的能力至關重要。

As I mentioned last quarter, with the second half of our year traditionally being the strongest in net sales, the timing of our new touch point openings, new product launches and our planned flow of inbound inventory, we expect to use cash during the second and third quarters of the year before generating substantial free cash flow in the fourth quarter to end fiscal 2024 with a significantly higher year-over-year cash balance.

正如我上季度提到的，下半年傳統上是淨銷售額最強勁的時期，我們開設新接觸點的時間、新產品的推出以及計劃的入庫庫存流量，我們預計在下半年和下半年將使用現金。到 2024 財年結束時，第四季度將產生大量自由現金流，現金餘額將顯著高於去年同期。

We are pleased with our first quarter results, which came in better than our expectations. We are proud of our team's execution in what continues to be a challenging macro backdrop. We will continue to operate our business with a strong focus on growth and ROI-driven investment discipline.

我們對第一季度的業績感到滿意，好於我們的預期。我們為我們團隊在充滿挑戰的宏觀背景下的執行力感到自豪。我們將繼續重點關注增長和投資回報率驅動的投資紀律來運營我們的業務。

Finally, as you saw -- announced earlier today, I've made the decision to retire as EVP and CFO of Lovesac effective June 30. It has been a privilege to be part of the Lovesac team for over the last 6.5 years and witnessed firsthand the brand's expansion, while working alongside our leadership team and the many talented individuals throughout the company. With Lovesac well-positioned for success, I felt it was the right time to make this transition, and we view Keith as the ideal candidate for the role. I look forward to continuing to support Lovesac's success in my new role as Senior Strategic Adviser.

最後，正如您所見，今天早些時候宣布，我決定從 6 月 30 日起辭去 Lovesac 執行副總裁兼首席財務官的職務。在過去 6.5 年裡，我很榮幸能夠成為 Lovesac 團隊的一員，並親眼目睹了這一過程。品牌的擴張，同時與我們的領導團隊和整個公司的許多才華橫溢的個人一起工作。由於 Lovesac 已經做好了成功的準備，我覺得現在是進行這一轉變的最佳時機，我們認為 Keith 是該職位的理想人選。我期待在擔任高級戰略顧問的新職位上繼續支持 Lovesac 取得成功。

Now I'll turn the call over to Shawn for a quick wrap up. Shawn?

現在我將把電話轉給肖恩進行快速總結。肖恩？

Before Q&A, I just want to take a moment again to thank our dedicated #LovesacFamily and team who have proven their ability to beat expectations with consistency. We are proud of these continued category-leading results, particularly in the current macro landscape. These results along with what we've seen so far in Q2 give us the confidence to reiterate our full year guidance and continue to invest prudently in our initiatives to drive future growth even as we are surely taking significant market share in real time based on these numbers.

在問答之前，我想再次花一點時間感謝我們敬業的#LovesacFamily 和團隊，他們已經證明了自己有能力持續超出預期。我們對這些持續領先的業績感到自豪，特別是在當前的宏觀形勢下。這些結果以及我們在第二季度迄今為止所看到的結果使我們有信心重申我們的全年指導，並繼續謹慎投資於我們推動未來增長的舉措，儘管我們肯定會基於這些實時佔據重要的市場份額數字。

Thanks again to Donna and to Jack, who have both been key to our ability to drive such consistency over many years now. They have each given a piece of their life to building what we all believe can be an influential, valuable and much loved brand with decades of growth yet to come. We are grateful to them. They have given our newer members and leadership, a solid foundation to build on, and we are confident that we, once again, have a top-notch team in place to carry the momentum forward and take it even further.

再次感謝唐娜和傑克，他們多年來一直是我們保持這種一致性的關鍵。他們每個人都奉獻了自己的一生，致力於打造一個我們都相信的有影響力、有價值且深受喜愛的品牌，並且未來幾十年還將繼續發展。我們很感激他們。他們為我們的新成員和領導層奠定了堅實的基礎，我們相信我們將再次擁有一支一流的團隊來推動這一勢頭並走得更遠。

With that, we'll turn the call back to the operator to manage Q&A.

這樣，我們會將電話轉回給接線員來管理問答。

(Operator Instructions) Today's first question is coming from Brian Nagel of Oppenheimer.

（操作員說明）今天的第一個問題來自奧本海默的布萊恩·內格爾（Brian Nagel）。

First off, congrats Donna and Jack on your retirement. It's been a pleasure working with you. So my question -- my question, I guess, the first question, we talk about -- just for the gross margins, is you're maybe getting better line of sight now to some improving cost metrics. I mean, how should we think about the gross margins from here? There's been some stabilization, but you're still tracking meaningfully below what had been historic peaks.

首先，祝賀唐娜和傑克退休。很高興與您合作。所以我的問題——我想我的問題，我們談論的第一個問題——就毛利率而言，你現在可能對一些改進的成本指標有了更好的了解。我的意思是，我們應該如何考慮這裡的毛利率？已經出現了一些穩定，但仍明顯低於歷史峰值。

Brian, specifically around the gross margin, are you looking to say where do we see the benefits?

Brian，特別是在毛利率方面，您是否想說我們在哪裡看到了好處？

Yes. So just as we think about the trajectory from here, either through the balance of '23 to '24 and maybe kind of the puts and takes? Any update there?

是的。因此，正如我們思考從這裡開始的軌跡一樣，無論是通過“23”到“24”的平衡，還是通過看跌期權？有更新嗎？

Yes. So first of all, thank you for acknowledging me earlier today. Just on the puts and takes of the gross margin, really, what we're going to see is some substantial benefits, as we said, 200 basis points increase on gross margin, which is substantially related to the benefits that we're seeing coming in through the lower freight cost which we paid for last year, we're just getting the benefit of it coming through the P&L this year.

是的。首先，感謝您今天早些時候對我的認可。就毛利率的看跌期權和看跌期權而言，實際上，我們將看到一些實質性的好處，正如我們所說，毛利率增加了 200 個基點，這與我們即將看到的好處有很大關係由於我們去年支付的運費較低，我們今年才從損益表中受益。

That benefit that we will see will fully come through in Q4 and we feel really confident in that. We have really good line of sight into that. Our container costs are actually still continuing to come down. But what we are still seeing there is some, we'll call it, inland transportation costs that are related -- what we call as [demurrage], right, which is beyond our control. It's really getting the containers -- once they hit the ports here in the U.S. to our facilities.

我們將看到的這種好處將在第四季度完全實現，我們對此非常有信心。我們對此有很好的視野。我們的集裝箱成本實際上仍在繼續下降。但我們仍然看到一些相關的內陸運輸成本，我們稱之為[滯期費]，對吧，這是我們無法控制的。一旦集裝箱到達美國這裡的港口，我們就會真正將其運送到我們的設施中。

So -- where -- you do hear while container costs are coming down to $3,000, $4,000, there is still some additional costs there related to the inbound transportation of those containers, but significantly less than a year ago when we were saying it's [25,000,] we're probably paying all in even with demurrage probably closer to [5.] So those costs will see the full benefit coming through of that on the fourth quarter. So barring anything else that comes our way with inbound container costs next year will be a clean year for us. But we do have some headwinds as those other companies on last mile, which is the FedExes of the world and the UPS, we predominantly use FedEx. But we are doing all that we can to mitigate that. Mary may share some additional initiatives that we're looking at with other carrier opportunities.

因此，您確實聽說，雖然集裝箱成本下降到 3,000 美元、4,000 美元，但仍然存在一些與這些集裝箱的入境運輸相關的額外成本，但明顯低於一年前我們所說的 [25,000 ，]即使滯期費可能接近[5]，我們也可能會全額支付。因此，這些成本將在第四季度看到全部收益。因此，除非出現任何其他影響我們入境集裝箱成本的因素，明年對我們來說將是乾淨的一年。但我們確實遇到了一些阻力，因為最後一英里的其他公司，即世界上的聯邦快遞和 UPS，我們主要使用聯邦快遞。但我們正在盡一切努力來緩解這種情況。瑪麗可能會與其他運營商分享我們正在考慮的一些其他舉措。

We actually start with a really -- at a really good spot with our negotiations and our rates with FedEx. And then on warehousing, the same thing with higher labor costs, we are seeing a little headwind in there. But that all being said, that is all accounted for in any of the guidance that we've provided plus a little extra to make sure that we cover things that we may not see coming our way.

實際上，我們從與聯邦快遞的談判和費率的一個非常好的位置開始。然後在倉儲方面，同樣的情況，勞動力成本較高，我們看到了一些阻力。但話雖如此，我們提供的任何指南都已考慮到這些內容，再加上一些額外內容，以確保我們涵蓋了我們可能看不到的內容。

That's very helpful. I appreciate it. And then my follow-up question with regard to sales. So I think, Donna, you mentioned in your comments a pull forward from -- I guess, from Q2 into Q1, maybe just help size that and what that relates to specifically. And then -- within sales, we talked about some of the promotional activity, Shawn, you talked about promotions still tracking up from last year, but still below where they've been historically. As you think about the business and this backdrop, would you consider being acting more promotional -- stepping up promotions more to really help, I guess, on the continued market share front?

這非常有幫助。我很感激。然後是關於銷售的後續問題。所以我認為，唐娜，你在評論中提到了從第二季度到第一季度的推進，也許只是幫助確定這一點以及具體涉及的內容。然後，在銷售方面，我們談到了一些促銷活動，肖恩，你談到促銷活動仍在去年基礎上進行，但仍低於歷史水平。當您考慮業務和這種背景時，您是否會考慮採取更多促銷措施——我想，加大促銷力度以真正幫助持續保持市場份額？

It's Mary here. So just your first question in terms of the shift that Donna referenced, I think one of the great things that we're learning is that we don't necessarily always have to have promotions at key [tentpole] moments. The quote pipeline fills up very fast and we actually tested doing an off-cycle promotion to basically just drive a bit more conversion. So that was towards the end of April and our demand far exceeded our net sales for the quarter. So there was a little bit of a shift and some of that is obviously in reflection of what Donna guided to for Q2. And I think it again goes back to the strength of our brand and also the ability for us to game customers in advance of maybe sometimes when they were thinking of purchasing when others are on promotions. So we feel very good for quarter 2.

瑪麗在這裡。因此，關於唐娜提到的轉變的第一個問題，我認為我們正在學習的一件偉大的事情是，我們不一定總是必須在關鍵[tentpole]時刻進行晉升。報價管道很快就會填滿，我們實際上測試了進行非週期促銷，基本上只是推動更多的轉化。那是在四月底，我們的需求遠遠超過了該季度的淨銷售額。因此，出現了一些轉變，其中一些顯然反映了唐娜對第二季度的指導。我認為這又回到了我們品牌的實力，以及我們提前吸引客戶的能力，也許有時當他們在其他人正在進行促銷時考慮購買時。所以我們對第二季度感覺非常好。

As Shawn shared, we've got a great perspective, having cleared frankly, Memorial Day, which is our biggest tentpole in this quarter. And we feel good with a strong quote pipeline, good promotional cadence, good in-stocks and the teams are really set to keep continuing to outperform as we demonstrate every single quarter.

正如肖恩分享的那樣，我們有一個很好的視角，坦率地說，陣亡將士紀念日是我們本季度最大的支柱。我們對強大的報價渠道、良好的促銷節奏、良好的庫存感到滿意，正如我們每個季度所展示的那樣，團隊確實將繼續保持優異的表現。

Shawn, I think on promotions, and I'll touch on it, and then I'll hand to you. I think the team continually demonstrate the ability to be agile and testing, as you can see by the results. We're very agile. We're actually getting better and better at being more programmatic in going directly to customers with quote versus [site-wide flashes]. But as Shawn shared, it's generally promotions have been holding the line since the second half of last year.

肖恩，我正在考慮促銷問題，我會談到它，然後我會交給你。我認為團隊不斷展示敏捷和測試的能力，正如您從結果中看到的那樣。我們非常敏捷。實際上，我們在以更加程序化的方式直接向客戶提供報價而不是[站點範圍內的閃爍]方面做得越來越好。但正如肖恩分享的那樣，自去年下半年以來，促銷活動總體上一直在進行。

You can see from our results, we've far exceeded anyone else. We continue to gain share and that's all just reinforcing the strength of our flywheel and that we are a company-specific product cycle story, not a macro demand business. So we feel good with the plans, but the teams will continue to adjust accordingly.

從我們的成績可以看出，我們遠遠超過了其他任何人。我們不斷獲得份額，這一切都只是增強了我們飛輪的實力，而且我們是一個特定於公司的產品週期故事，而不是宏觀需求業務。因此，我們對計劃感到滿意，但團隊將繼續進行相應調整。

Yes, I agree. Nothing to add, other than we'll continue to be really diligent on this front. We are focused on building the brand in the most long-term focused way possible even through tighter times, and that's definitely affecting our outlook on promotions, in general, we intend to be really disciplined.

是的我同意。沒有什麼可補充的，除了我們將繼續在這方面非常努力。即使在困難時期，我們也致力於以最長期的方式打造品牌，這肯定會影響我們對促銷的看法，總的來說，我們打算真正遵守紀律。

The next question is coming from Maria Ripps of Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Maria Ripps。

Donna and Jack, best of luck going forward. It was great working with you. First, is there any indication as to whether consumer trends and maybe discretionary spend is getting better or worse over the past couple of months? Obviously, you reiterated your full year outlook. And then any color maybe you can add in terms of higher-end consumer versus more price-sensitive buyers here?

唐娜和傑克，祝你一切順利。和你一起工作真是太好了。首先，是否有任何跡象表明過去幾個月消費者趨勢以及可自由支配支出是變得更好還是更糟？顯然，您重申了全年展望。然後，針對高端消費者與對價格更敏感的買家，您可以添加任何顏色嗎？

Yes, it's great to hear from you. So I think we've obviously just -- the year-end update a couple of months ago. We're not seeing anything that's significant from that or any consistent trade down trends. I think -- in fact, actually, what we're seeing is that they've tended to have a flat or slightly elevated mix of premium upgrades in their purchase.

是的，很高興收到你的來信。所以我認為我們顯然剛剛在幾個月前進行了年終更新。我們沒有看到任何重大的變化，也沒有看到任何持續的貿易下降趨勢。我認為——事實上，我們看到的是，他們在購買時傾向於持平或略有提高的高級升級組合。

We do see, as we shared before, the use of financing that, that continues to trend up versus last year, which we fully planned for. And as other brands have shared, we're actually seeing customers buying later at the end of a promotional event versus last year. And I think a lot of that -- last year, they were buying because of concerns around availability, just in general in the market and obviously, with that more secure for the category, people are holding back a bit. But I think that's consistent to what everyone else has shared and it's more settling back to pre-pandemic buying patterns. But I think we also see -- and I think Shawn shared this before, 38% of our customers don't even cross shop us with anyone else. So we -- they come in, they want to buy, they use the credit where they want to on the financing, but just the brand strength just continues, as you can see in the results.

正如我們之前分享的那樣，我們確實看到融資的使用與去年相比繼續呈上升趨勢，這是我們充分計劃的。正如其他品牌所分享的那樣，我們實際上看到客戶在促銷活動結束時比去年更晚進行購買。我認為其中很多 - 去年，他們購買是因為對可用性的擔憂，一般來說在市場上，顯然，隨著該類別更加安全，人們有點猶豫。但我認為這與其他人分享的內容是一致的，而且更傾向於回歸到大流行前的購買模式。但我想我們也看到——而且我想 Shawn 之前也分享過這一點，我們的 38% 的顧客甚至不會和其他人交叉購買我們的產品。所以我們——他們進來，他們想要購買，他們在融資上使用他們想要的信貸，但品牌實力仍在繼續，正如你在結果中看到的那樣。

Got it. That's very helpful. And then you talked about making some sort of infrastructure tech and R&D investments to support future growth. Could you maybe provide us with an update on how those initiatives are progressing? Maybe a little bit more color on what those investments are? And I guess, which areas of the business are they designed to impact the most?

知道了。這非常有幫助。然後您談到進行某種基礎設施技術和研發投資以支持未來的增長。您能否向我們提供有關這些舉措進展情況的最新信息？也許對這些投資的內容有更多的了解？我猜想，它們對哪些業務領域影響最大？

Yes. Thank you for that question. So I think, firstly, on the tech investment, a key one and I think as Donna shared, and I shared the ability for us to start to optimize on our inventory levels was some of the investments we started last year into this year, with order management systems and really the availability to be a lot more surgical around where we place inventory and how we replenish to orders. So that was a big investment. We're seeing that benefit that will come through, obviously, in working capital and also the ability to have less weeks of sale, but yet still delivering the outstanding continued improvements in customer satisfaction.

是的。謝謝你提出這個問題。因此，我認為，首先，在技術投資上，這是一個關鍵投資，我認為正如唐娜所分享的那樣，我也分享了我們開始優化庫存水平的能力是我們從去年開始到今年開始的一些投資，訂單管理系統，以及我們在庫存位置和訂單補貨方式方面的可用性，確實要更加精確。所以這是一筆很大的投資。顯然，我們看到了營運資金方面的好處，以及減少銷售週數的能力，但仍然在客戶滿意度方面取得了顯著的持續改進。

The -- another example that we're investing in is around customer service. We shared with you before around some of the work there. And just obviously, more recently, we kicked off a pilot with an AI platform called (inaudible), which is testing machine-generated responses for our frontline associates that are serving customers. And we think -- this investment in AI is so critical for our customer experience and then supporting our teams in all of their crucial work every day. So those are just a couple of examples on the tech side and then the rest of the investments that we have always shared is around research and development, which is for our long-term growth, Maria.

我們投資的另一個例子是客戶服務。我們之前與您分享過那裡的一些工作。顯然，最近，我們啟動了一個名為（聽不清）的人工智能平台的試點，該平台正在為為客戶服務的一線員工測試機器生成的響應。我們認為，對人工智能的投資對於我們的客戶體驗以及支持我們團隊每天的所有重要工作至關重要。這些只是技術方面的幾個例子，我們一直分享的其餘投資都是圍繞研發，這是為了我們的長期增長，瑪麗亞。

The next question is coming from Thomas Forte of D.A. Davidson.

下一個問題來自 D.A. 的 Thomas Forte。戴維森。

Great. So first off, congrats, Shawn, Mary and team. Jack, best of luck. It was a pleasure working with you. I look forward to your guidance on the Board. Donna, I'm going to miss you. It's a pleasure working with you and best of luck as well.

偉大的。首先，恭喜肖恩、瑪麗和團隊。傑克，祝你好運。很開心跟你工作。我期待您對董事會的指導。唐娜，我會想念你的。很高興與您合作，也祝您好運。

All right. So for my first question, then I'll pause and a follow-up. So Shawn, I think you did a great job with data analysis. What does the data tell you regarding consumers who may appreciate the functionality of your product but don't purchase it or maybe they purchase it, but they don't buy it for more rooms in their house because of the aesthetics. And then can you talk about the angled side versus the roll arm when you rolled out the roll arm and how that had a positive impact on your results?

好的。對於我的第一個問題，我將暫停並跟進。 Shawn，我認為你在數據分析方面做得很好。對於那些可能欣賞您產品的功能但不購買或者可能購買但由於美觀而不會為家裡的更多房間購買產品的消費者，這些數據告訴您什麼？然後，您能談談當您展開翻滾臂時傾斜的一側與翻滾臂的情況以及這對您的結果有何積極影響嗎？

Yes. So thanks for the question. Great to hear from you. Sactionals is a very successful couch platform because of its flexibility. It has taken us years of being in the marketplace, paying for research, to continue to refine the platform and tease out where the biggest opportunities lie. And we continue to knock those out one after the other year after year as we continue to drive the Sactionals platform to become as we think of it, the apex predator in couches, right? We want it to be all things to all people as much as it can be. And so far, it's proving successful. And the results, of course, are in the -- the evidence is in the results.

是的。謝謝你的提問。很高興聽到你的消息。 Sactionals 因其靈活性而成為一個非常成功的沙發平台。我們花了數年時間進入市場，支付研究費用，繼續完善平台並找出最大的機會所在。我們繼續年復一年地淘汰這些人，繼續推動 Sactionals 平台成為我們所認為的沙發上的頂級掠奪者，對嗎？我們希望它盡可能地滿足所有人的需求。到目前為止，它被證明是成功的。當然，結果就在——證據就在結果中。

That said, we know that there are 2 core things that drive this business. One is comfort and two is style. In the case of the angled side, we have both being addressed, and it's been a really effective launch. We knew that it would be based on our research, and I think that really speaks to the strength of how Lovesac operates. We are a research-led organization. We blend this, call it, CPG approach to research, product development, customer development, customer research, along with pure invention to generate platforms that are uniquely competitive. And so we know that style is always going to be an issue when you're dealing with a product that was intentionally created to be evergreen, to be the same for years and years. Theoretically forever, hopefully, by taking a (inaudible) and simple approach in a way that would offend nobody and hopefully be addressable -- be relevant to everybody.

也就是說，我們知道有兩個核心因素推動著這項業務。一是舒適，二是風格。在有角度的一側的情況下，我們都得到了解決，這是一次非常有效的發射。我們知道這將基於我們的研究，我認為這確實說明了洛夫薩克運作方式的優勢。我們是一個以研究為主導的組織。我們將這種稱為 CPG 的研究、產品開發、客戶開發、客戶研究方法與純粹的發明相結合，以生成具有獨特競爭力的平台。因此，我們知道，當您處理的產品是為了常青、年復一年保持不變而設計的，風格始終是一個問題。理論上，希望永遠是這樣，通過採取一種（聽不清）簡單的方法，以一種不會冒犯任何人並希望可以解決的方式——與每個人相關。

With that, there leaves tons of opportunity left on the table. So for instance, years ago, you mentioned we launched roll arm as a way to address a more conservative traditional customer that is looking for that more traditional look in their home. And it was wildly successful, and it's been part of our Lovesac Sactionals' ecosystem for years now. You can think of angled side as a more modern version of that. But angled side goes further because not only does it address an aesthetic that we did not have, but it also, frankly, provides a different comfort level than we offered up until now.

這樣一來，就剩下大量的機會了。例如，幾年前，您提到我們推出了卷臂，作為一種方式來滿足更保守的傳統客戶的需求，他們正在尋找更傳統的家裝外觀。它非常成功，多年來一直是我們 Lovesac Sactionals 生態系統的一部分。您可以將有角度的側面視為更現代的版本。但傾斜的側面更進一步，因為它不僅解決了我們沒有的美學問題，而且坦率地說，它還提供了與我們迄今為止提供的不同的舒適度。

Like when you get the chance to sit on an angled side because I understand the word side in our world is not just an arm, it's a back, it's interchangeable. So you can have all angled sides, all the way around and now your Sactionals lean back a little further, the sitting space is a little larger. And it really sets the table for other innovations that will come as well that will further address comfort and aesthetic.

就像當你有機會坐在有角度的一側時，因為我知道我們世界中的“一側”這個詞不僅僅是手臂，它是背部，它是可以互換的。因此，您可以擁有所有成角度的側面，並且現在您的 Sactionals 可以向後傾斜一點，乘坐空間會更大一些。它確實為未來的其他創新奠定了基礎，進一步解決舒適性和美觀問題。

So Sactionals already, what we witness happening is people buy Sactionals for whatever room they have in mind for it. Often, it will be a basement, a bonus room, who knows what because you can make them so large. You can integrate StealthTech and have surround sound. You (inaudible) setups, that kind of thing. And we'll take it. Those are huge purchases. But their experience is so good, of course, with Sactionals and that proves over time, right, as people spill, live their life, expand, have -- make mistakes, animals, kids, dogs, pets, who knows what. And then we end up in other rooms in their home or even in their second homes or who knows what, because their experience with the brand is so good. That's what we like to see and the further that we expand the Sactionals platform, the more of that we make possible because people could have one look here and another look there, and we address those aesthetic opportunities. And so we're really excited about it. But roll arm was more niche than angled side, and we believe that the opportunity for angled side is even larger.

所以 Sactionals 已經發生了，我們目睹的情況是，人們購買 Sactionals 是為了他們想要的任何房間。通常，它會是一個地下室，一個獎金房間，誰知道會是什麼，因為你可以把它們做得這麼大。您可以集成 StealthTech 並​​擁有環繞聲。你（聽不清）設置，諸如此類的事情。我們會接受它。這些都是巨大的採購。但他們的經驗當然是很好的，隨著時間的推移，隨著人們的溢出、生活、擴展、犯錯誤、動物、孩子、狗、寵物，誰知道會發生什麼，這一點得到了證明。然後我們最終會去他們家的其他房間，甚至是他們的第二個家，誰知道會發生什麼，因為他們對該品牌的體驗非常好。這就是我們希望看到的，我們越進一步擴展 Sactionals 平台，我們就越能實現更多的功能，因為人們可以在這裡看一眼，在那裡看另一眼，我們解決了這些審美機會。所以我們對此感到非常興奮。但滾動臂比傾斜側更小眾，我們相信傾斜側的機會更大。

Excellent. All right. So then for my follow-up, I'll try to ask this one quicker. All right. So one of the big challenges for direct-to-consumer companies, and I consider you the best-in-class of direct-to-consumer companies is driving brand awareness. So I wanted to know if you could talk about your unaided awareness and how that's changed over time. And if you could talk specifically about the social media engagement you had as it related to your 25th anniversary celebration, which was amazing.

出色的。好的。那麼對於我的後續行動，我會嘗試更快地詢問這個問題。好的。因此，對於直接面向消費者的公司（我認為你們是同類中最好的直接面向消費者的公司）來說，最大的挑戰之一是提高品牌知名度。所以我想知道你是否可以談談你的獨立意識以及隨著時間的推移它是如何變化的。如果您能具體談談您在社交媒體上的參與度，因為它與您的 25 週年慶典相關，那就太棒了。

Yes. We have seen our unaided awareness continue to be quite low. And part of that is -- and I say that with a smile because it's just -- we have a huge opportunity to continue to reach people. While we have grown the business tremendously and we're proud of the growth, we have a long way to go on unaided awareness. And the way that we come at that are many, through advertising, through promotion, through influencers, social media, et cetera. Our aided awareness has gone through the roof.

是的。我們發現我們的獨立意識仍然很低。其中一部分是——我微笑著說，因為這只是——我們有巨大的機會繼續接觸人們。雖然我們的業務取得了巨大的發展，並且我們為這種增長感到自豪，但我們還有很長的路要走，要靠自身的意識來實現。我們實現這一目標的方式有很多，通過廣告、通過促銷、通過影響者、社交媒體等等。我們的輔助意識已經達到頂峰。

In the furniture category, we are now up there with the best of them as brands that come to mind when -- brands that can be recognized on a sheet of paper, let's say, when given the opportunity. So Lovesac -- so clearly, our advertising has been working. Again, the evidence is in the results. We recently celebrated our 25th anniversary with a huge media party kickoff in New York. We'll be celebrating it all year. So you'll get sick of hearing about it, but it really is super relevant to us for the reasons I talked about in my script. But we have estimated more than 3 billion impressions from that event alone.

在家具類別中，我們現在是其中最好的品牌，當有機會時，我們會想到這些品牌，這些品牌可以在一張紙上被識別出來。洛夫薩克——很明顯，我們的廣告一直在發揮作用。再次強調，證據就在結果中。最近，我們在紐約舉辦了一場盛大的媒體派對，慶祝成立 25 週年。我們將慶祝這一年一整年。所以你會厭倦聽到它，但由於我在劇本中談到的原因，它確實與我們非常相關。但我們估計僅該事件的展示次數就超過 30 億次。

We have in attendance all kinds of social media influencers, A-list celebrities. Of course, we had Travis Barker and Machine Gun Kelly on stage, who are all fans of Lovesac. All these celebrities who appeared, who support us, who even played our event are fans of Lovesac for many, many years to come -- many, many years have been fans of Lovesac, have owned our product. It's in their homes right now. So it's truly authentic. And this is one thing that's underestimated about Lovesac.

出席我們活動的有各種社交媒體影響者、一線名人。當然，舞台上還有特拉維斯·巴克（Travis Barker）和機關槍·凱利（Machine Gun Kelly），他們都是洛夫薩克的粉絲。所有出現的、支持我們的、甚至參加我們活動的名人在未來很多很多年都是 Lovesac 的粉絲——很多很多年來一直是 Lovesac 的粉絲，擁有我們的產品。現在就在他們家裡。所以它確實是正宗的。這是洛夫薩克被低估的一件事。

We are resonating with teenagers and kids in ways that our competitors are not. And by the way, those kids are driving sales of sometimes $15,000, $20,000 StealthTech Sactionals setup in their parent's basement, I witness it every day personally. I meet people who have come to our brand through their children. And so it's not that, that's our core marketing philosophy. But my point is that this brand resonates with customers like no other furniture brand does. And we're really proud of that. It's a superpower of ours, we think, and we'll continue to lean into it.

我們正在以我們的競爭對手所沒有的方式與青少年和兒童產生共鳴。順便說一句，這些孩子在他們父母的地下室裡設置的 StealthTech Sactionals 的銷售額有時達到 15,000 美元、20,000 美元，我每天都親眼目睹這一點。我遇到了一些通過孩子來到我們品牌的人。所以這不是我們的核心營銷理念。但我的觀點是，這個品牌與客戶產生的共鳴是其他家具品牌無法比擬的。我們對此感到非常自豪。我們認為，這是我們的超能力，我們將繼續依靠它。

The next question is coming from Matt Koranda of ROTH.

下一個問題來自羅斯的馬特·科蘭達。

Congrats to Donna and Jack on a great run. Just wanted to start out with -- quickly just clarifying the showroom comp is ahead of revenue growth in the channel, and I know there's a demand comp dynamic. So I just wanted to make sure that we understand what the delta is there and what the spillover is that's incorporated in the second quarter revenue guide? And then just also on May sales and Memorial Day, I know you mentioned it was up year-over-year. Just what were the key drivers in terms of the improvement on a year-over-year basis? Was it promos? It sounds like you're seeing consumers respond to those. Just wanted to get your take on that as well.

祝賀唐娜和傑克跑得很好。只是想開始 - 快速澄清陳列室補償領先於渠道的收入增長，而且我知道存在需求補償動態。所以我只是想確保我們了解第二季度收入指南中包含的增量是什麼以及溢出是什麼？然後就在五月銷售和陣亡將士紀念日，我知道您提到它同比增長。同比改善的關鍵驅動因素是什麼？是促銷嗎？聽起來你看到消費者對此做出了反應。我也只是想听聽您對此的看法。

Yes. Matt, it's Donna. Hopefully, I can provide some clarification. So -- our first -- as I noted earlier that our first half comps are exactly in line where we thought they were going to be. There was a slight shift, which caused the overperformance in Q1, as we noted, where we had guided to $133 million to $136 million and came in at $141 million. And that was due to planned promotional activity at the end of Q1, but that planned promotional activity, obviously -- it pulled forward demand. So again, we're really happy with where we're going to end for first half comps, but it did -- our promotional activity at the end of the quarter was so well-received, it did.

是的。馬特，這是唐娜。希望我能提供一些澄清。所以——我們的第一個——正如我之前指出的，我們上半場的比賽完全符合我們的預期。正如我們所指出的，有一個輕微的轉變導致了第一季度的超額表現，我們的指導價為 1.33 億美元至 1.36 億美元，最終結果為 1.41 億美元。這是由於第一季度末計劃的促銷活動，但計劃的促銷活動顯然拉動了需求。再說一次，我們對上半年比較的結束感到非常滿意，但它確實如此——我們在季度末的促銷活動非常受歡迎，它確實如此。

We're anticipating a pull forward in our guidance of demand. Does that help you on that piece? And that's -- one of the other things is where we talk about -- we also have orders on our balance sheet, we're sitting with about $13 million. I think it's about $13 million -- $15 million worth of orders at the end of the quarter that we'll be shipping into Q2. And if you remember, our comps for showrooms are based on demand and not net sales. So that's where you see that little bit of flex where we're reporting higher demand than we are in net sales. We're going to see a part of that demand that's in the comp number shift into Q2 that become sales. And that's the timing, like that's at the actual end of the quarter.

我們預計需求指導將會向前推進。這對你在那件作品上有幫助嗎？那就是——我們談論的另一件事——我們的資產負債表上也有訂單，我們坐擁大約 1300 萬美元。我認為到本季度末，我們將在第二季度發貨的訂單價值約為 1300 萬美元至 1500 萬美元。如果您還記得的話，我們的陳列室比較是基於需求而不是淨銷售額。因此，這就是您看到的一點點彈性，我們報告的需求高於淨銷售額。我們將看到補償數量中的部分需求將轉移到第二季度並轉化為銷售額。這就是時間，就像實際的季度末一樣。

These are not orders that were -- that we took at the beginning of the quarter and they're still sitting there. It was just timing of promo and when we can ship. So essentially, our open orders turn into net sales within a week or so of the demand being created. But that timing of demand versus shipments is what you're also seeing flex in demand being higher than our net sales for the -- for Q1.

這些不是我們在本季度初收到的訂單，但它們仍然放在那裡。這只是促銷的時間以及我們何時可以發貨。因此，從本質上講，我們的未結訂單在需求產生後一周左右就會轉化為淨銷售額。但需求與發貨的時間關係也體現在需求彈性高於我們第一季度的淨銷售額。

And then I -- sales on that -- on Memorial Day, Matt, to your question, obviously, we were thrilled with the performance, the promotion depth and frequency we've been holding in -- as a cadence in the second half of last year, so nothing new from that side. I think there was some excitement from the angled side soft launch, which is just obviously in showrooms at the moment. And then I think back to the investment that Shawn talked about, about our 25th anniversary and just the level of media impressions that we get, then you just -- you see a long-term benefit to that as well as obviously in the quarter. But we were very pleased, and we've seen that performance continue from Memorial Day.

然後我——銷售——在陣亡將士紀念日，馬特，對於你的問題，顯然，我們對我們一直堅持的表現、促銷深度和頻率感到興奮——作為下半年的節奏去年，所以這方面沒有什麼新鮮事。我認為有角度的側面軟啟動令人興奮，這顯然目前在陳列室中。然後我回想起肖恩談到的投資，關於我們的 25 週年紀念日，以及我們得到的媒體印像水平，然後你就會看到這一點的長期利益，以及顯然在本季度的利益。但我們非常高興，而且我們看到這種表現從陣亡將士紀念日起就一直在繼續。

Okay. Great. And then just for my follow-up, on the margin guide for the second quarter, it sounded like, I think, Donna, you said up maybe 100 basis points on gross margins. I want to make sure I heard that correctly. What does that assume in terms of promotional cost headwinds on a year-over-year basis? Just trying to triangulate sort of around what you're assuming there versus some of the freight benefit. And then on the -- how that flows down to the adjusted EBITDA guide? Just curious -- it sounds like you're going to be leaning into marketing in the second quarter. So I just wanted to understand a bit more about where you guys see opportunity to invest those dollars on the marketing side?

好的。偉大的。然後，就我的後續行動而言，關於第二季度的利潤率指南，我想，唐娜，你說毛利率可能會上升 100 個基點。我想確保我聽到的是正確的。就同​​比促銷成本不利因素而言，這有何假設？只是嘗試圍繞您的假設與一些貨運收益進行三角測量。然後，這如何轉化為調整後的 EBITDA 指南？只是好奇——聽起來你們將在第二季度轉向營銷。所以我只是想更多地了解一下你們在哪些方面看到了在營銷方面投資這些資金的機會？

Yes. So I'll start. Yes. So Matt, that's correct. I did say a 200 basis point increase in gross margin, Q2 this year as compared to Q1. There -- the upside to gross margin from the benefits of the inbound freight is greater than the 200 basis points year-over-year increase. I don't have the specific numbers, but it's not only promotional activity. And as Mary has said and I think Shawn has said, we are a little bit more promotional than we were this time last year, but we are nowhere close to as promotional as we were pre-pandemic levels. So there is a little bit there in product margin. But we also, as I had noted, we do have some deleverage, I would call it, in outbound freight just as a relationship to cost increasing for us and everybody else. And a little bit of deleverage in our warehousing as we expand our warehouse network and costs there become a little bit more expensive just as relative to labor at the warehouses. Those are not our warehouses, by the way, just to remind you, those are 3PLs.

是的。那麼我就開始吧。是的。所以馬特，這是正確的。我確實說過，今年第二季度的毛利率比第一季度增加了 200 個基點。入境貨運帶來的毛利率上升幅度超過了 200 個基點的同比增幅。我沒有具體數字，但這不僅僅是促銷活動。正如瑪麗所說，我想肖恩也說過，我們的促銷力度比去年這個時候多了一點，但我們的促銷水平還遠遠沒有達到大流行前的水平。所以產品利潤還有一點。但正如我所指出的，我們確實在出境貨運方面進行了一些去槓桿化，我稱之為去槓桿化，這與我們和其他所有人的成本增加有關。隨著我們擴大倉庫網絡，我們的倉儲出現了一點去槓桿化，相對於倉庫的勞動力而言，那裡的成本變得更加昂貴。順便提醒一下，那些不是我們的倉庫，那些是 3PL。

So that net of 200 basis points is greater in our inbound freight, which is netting down to 200 basis points because of increased year-over-year and product discounting as well as outbound freight costs and warehousing. The adjusted -- yes, so to your question on marketing, we will see a -- where we saw in Q1, a slight leverage of marketing, I think it was about 30 basis points. We are expected to see because of the investments around our 25th brand-building event in addition to angled side. Big, big, big things for Lovesac.

因此，我們的入境運費淨值增加了 200 個基點，由於同比和產品折扣以及出境運費和倉儲成本的增加，淨額下降至 200 個基點。調整後——是的，所以對於你關於營銷的問題，我們會看到——我們在第一季度看到，營銷的槓桿作用很小，我認為大約是 30 個基點。除了斜邊之外，我們預計還會看到圍繞第 25 屆品牌建設活動的投資。對於洛夫薩克來說，這是一件大事、大事、大事。

We will see deleverage in marketing in Q2, specifically around those events. It all put planned into guidance, planned into our annual guidance, it all accounted for in our quarter guidance. And SG&A -- on a deleverage of SG&A, we are deleveraging approximately the same amount we did in Q1. So they're all the planned costs, they're planned investments. And we will start to see all of those costs leveraging into the second half of the year, predominantly the fourth quarter. And that will all impact the adjusted EBITDA. But we feel really comfortable, very, very confident and we've built in all the costs that we can see coming our way. And any upside to those numbers, the team will decide strategically how to and when to reinvest those dollars.

我們將在第二季度看到營銷的去槓桿化，特別是圍繞這些事件。這一切都將計劃納入指導，計劃納入我們的年度指導，這一切都計入我們的季度指導。 SG&A——在SG&A的去槓桿化方面，我們的去槓桿化程度與第一季度的水平大致相同。所以它們都是計劃成本、計劃投資。我們將開始看到所有這些成本在今年下半年（主要是第四季度）發揮作用。這都會影響調整後的 EBITDA。但我們感覺非常舒服，非常非常有信心，並且我們已經考慮了我們可以看到的所有成本。如果這些數字有任何好處，團隊將戰略性地決定如何以及何時對這些資金進行再投資。

Our final question today is coming from Alex Fuhrman of Craig-Hallum.

我們今天的最後一個問題來自 Craig-Hallum 的 Alex Fuhrman。

Congratulations on a strong quarter. And Jack and Donna, it's been a pleasure getting to know you over the years. So congratulations to you both as well. Shawn, I wanted to ask about the -- just big picture here. You mentioned the average first-time transaction value for a Sactional purchase now is about $5,000. And it feels like it was only maybe a couple of years ago that, that number was closer to $3,500. Can you kind of give us a sense of what are people buying today in terms of pieces and fabrics and things like that compared to what they were buying just a couple of years ago?

祝賀季度表現強勁。傑克和唐娜，這些年來認識你們很高興。也祝賀你們倆。肖恩，我想問一下大局。您提到現在 Sactional 購買的平均首次交易價值約為 5,000 美元。感覺好像就在幾年前，這個數字才接近 3,500 美元。您能否讓我們了解一下，與幾年前相比，人們現在購買的單品、面料等商品有哪些？

Yes. Thanks for the question. Sactionals average order value has just continued to go through the roof year after year. It's been climbing steadily as you've witnessed. It's been a major part of our growth overall. And we're really proud of that. And that's driven by innovation. People are buying larger setups generally.

是的。謝謝你的提問。 Sactionals 的平均訂單價值年復一年地持續飆升。正如您所見證的，它一直在穩步攀升。這是我們整體增長的重要組成部分。我們對此感到非常自豪。這是由創新驅動的。人們通常會購買更大的裝置。

I just think the bigger our brand gets, the more that aided and unaided awareness expands and the more that our brand is accepted in the marketplace is something that's not so fringe, something is not such an unknown. People just get more comfortable, I think, spending with us and really taking the risk on bigger setups. And so that's number one.

我只是認為我們的品牌越大，輔助和獨立的意識就越擴大，我們的品牌在市場上被接受的程度就越高，這並不是那麼邊緣化，也不是那麼未知。我認為，人們在與我們一起消費並真正承擔更大風險的情況下會變得更加舒適。所以這是第一。

Number two, StealthTech, huge, huge driver of AOV for us. And we expect to see some of the same behavior around angled side. Remember, it also drives repeat business for us. But speaking specifically about that first purchase is what you asked, and that's what we're referencing, people that are buying Sactionals for the first time, that's where the largest dollar take is for us. We're totally focused on that. We've been focused on that for years.

第二，StealthTech，對我們來說，AOV 的巨大推動者。我們預計在有角度的一側會出現一些相同的行為。請記住，它還為我們帶來了回頭客。但具體來說，第一次購買是您所問的，這就是我們所參考的，第一次購買 Sactionals 的人，這對我們來說是最大的收入來源。我們完全專注於此。多年來我們一直專注於此。

We'll continue to be focused on it. As much as we feel really great about our growth and our success and how much just the sheer size of Lovesac compared to what it was 2 or 3 years ago even. The reality is we're still just a small fraction of this upholstery category, just a small fraction. Because it's so splintered, it's so fragmented. It's -- and it's vast. Every home that you know of have a couch in it. We intend to be there. We think we make the best one, and we'll continue to make it better through innovations like the angled side.

我們將繼續關注它。我們對自己的成長和成功感到非常高興，也對洛夫薩克的規模與兩三年前相比有多大的感受。現實是，我們仍然只是這個室內裝飾類別的一小部分，只是一小部分。因為它是如此的分裂，它是如此的支離破碎。它是——而且是巨大的。你所知道的每個家庭都有一張沙發。我們打算去那裡。我們認為我們製造了最好的產品，並且我們將繼續通過斜面等創新使其變得更好。

And so that's -- all this innovation is what's driving that first purchase [up] combined with our brand cloud. And that's where all of our investments are. All of our focus, social media, marketing, everything is all part of that effort.

所以，所有這些創新與我們的品牌雲相結合，推動了首次購買。這就是我們所有投資的地方。我們所有的關注點、社交媒體、營銷，一切都是這一努力的一部分。

At this time, I'd like to turn the floor back over to Mr. Nelson for closing comments.

現在，我想把發言權交還給納爾遜先生以供結束髮言。

Yes. Thank you so much for joining today. We look forward to another year of growth as we build toward our longer-term ambitions. We appreciate the continued support of all of our investors and hope to create continued value for all stakeholders with our commitment to this Designed for Life way of doing business. Have a great day.

是的。非常感謝您今天的加入。我們期待著又一年的增長，以實現我們的長期目標。我們感謝所有投資者的持續支持，並希望通過我們對這種“為生活而設計”的經營方式的承諾，為所有利益相關者創造持續的價值。祝你有美好的一天。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines at this time or log off the webcast, and enjoy the rest of your day.

女士們、先生們，感謝您的參與。今天的活動到此結束。此時您可以斷開線路或退出網絡廣播，然後享受剩下的一天。