Lovesac Co (LOVE) 2026 Q1 法說會逐字稿

Greetings. Welcome to Lovesac's first-quarter fiscal 2026 earnings conference call. (Operator Instructions)

問候。歡迎參加 Lovesac 2026 財年第一季財報電話會議。（操作員指示）

Please note, this conference is being recorded. This time, I'll turn the conference over to Caitlin Churchill, Investor Relations for Lovesac. Caitlin, you may begin.

請注意，本次會議正在錄製。這次，我將把會議交給 Lovesac 投資者關係部門的 Caitlin Churchill。凱特琳，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 Keith Siegner, Chief Financial Officer.

謝謝。大家早安。與我一起參加電話會議的還有執行長肖恩·尼爾森 (Shawn Nelson)、總裁瑪麗·福克斯 (Mary Fox) 和首席財務官基思·西格納 (Keith Siegner)。

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.

在我們開始之前，我想提醒您，討論的一些資訊將包括有關未來事件和我們未來財務表現的前瞻性陳述。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聲明。實際結果可能與此類聲明中所述的結果有重大差異。要了解這些風險和不確定性，您應該查看該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 predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by applicable law.

您不應依賴我們的前瞻性陳述來預測未來事件。我們在本次電話會議上所做的所有前瞻性陳述均基於今天的假設和信念，除非適用法律要求，否則我們不承擔更新這些陳述的義務。

Our discussion today will include non-GAAP financial measures including EBITDA and adjusted EBITDA. These non-GAAP measures should be considered in addition to and not a substitute for or an 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.

我們今天的討論將包括非公認會計準則財務指標，包括 EBITDA 和調整後的 EBITDA。這些非 GAAP 指標應被視為對我們的 GAAP 結果的補充，而不是替代或孤立。我們在新聞稿中提供了最直接可比較的 GAAP 財務指標與非 GAAP 財務指標的對賬，作為補充財務資訊。

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 公司執行長 Shawn Nelson。

Good morning, everyone, and thank you for joining us. I'll start by sharing a high-level overview of our first-quarter results, provide an update on our Designed For Life product platforms, and touch on our views for the remainder of the year before passing the discussion over to Mary Fox, our President. Mary will discuss our tailored customer acquisition engines and key growth enablers. Finally, Keith Siegner, our CFO, will review our financial results and provide more detail on our Q2 and FY26 outlook. Turning to our first quarter.

大家早安，感謝大家的收看。我將首先概述我們的第一季業績，提供我們「為生活而設計」產品平台的最新信息，並談談我們對今年剩餘時間的看法，然後將討論交給我們的總裁瑪麗·福克斯 (Mary Fox)。瑪麗將討論我們量身定制的客戶獲取引擎和關鍵成長推動因素。最後，我們的財務長 Keith Siegner 將回顧我們的財務業績，並提供有關我們第二季和 2026 財年展望的更多詳細資訊。轉向我們的第一季。

Overall, we're pleased to have delivered results in line with our expectations and consistent with our plan to capitalize on secular initiatives and return to growth. For the first quarter, total net sales were $138.4 million, reflecting a year-over-year increase of 4.3%. These results reflect market share gains despite the ongoing headwinds facing this category, which we estimate declined 5% for the comparable period. Total omni-channel comparable net sales increased 2.8% for the quarter, with additional growth coming from new and non-comp touch point contributions.

總體而言，我們很高興取得了符合我們預期的業績，並且符合我們利用長期舉措並恢復成長的計劃。第一季度，總淨銷售額為 1.384 億美元，年增 4.3%。這些結果反映出儘管該類別面臨持續的阻力，但市場佔有率仍然有所增長，我們估計同期該類別市佔率下降了 5%。本季全通路可比淨銷售額總額成長 2.8%，額外的成長來自新的和非可比接觸點的貢獻。

Notably, our results reflect not only top line growth, but also SG&A leverage, as we've begun to reap the benefits of previous investments aimed to bolster core capabilities and accelerate our pace of product innovation. As a result, adjusted EBITDA, net loss, and net loss per common share all improved by double-digit percentages year over year. Our balance sheet also remains very healthy, with inventory levels and net cash providing substantial flexibility to weather tariff distractions, accelerate growth, and enhance returns on capital.

值得注意的是，我們的業績不僅反映了營業收入的成長，也反映了銷售、一般及行政費用的槓桿率，因為我們已開始收穫旨在增強核心能力和加快產品創新步伐的先前投資的收益。因此，調整後的 EBITDA、淨虧損和每股普通股淨虧損均較去年同期實現了兩位數的百分比改善。我們的資產負債表也保持非常健康，庫存水準和淨現金提供了相當大的靈活性，以抵禦關稅幹擾、加速成長和提高資本回報率。

Now, for the exciting part, innovation on our Designed For Life product platforms. First, with a full quarter of a reclining seat in market, we can say that it has been a huge success. Backed by the launch of the Recline of Civilization marketing campaign mid-quarter, we've seen increases in new customer attachment coupled with healthy units per transaction, all while maintaining the strong repeat customer purchases we spoke of last quarter. Our customers love the recliner and see it as a tremendous value compared to competitor offerings, giving us optimism for continued meaningful contributions for many years to come.

現在，令人興奮的是，我們的「為生活而設計」產品平台的創新。首先，當斜躺式座椅在市場上銷售了整整四分之一時，我們可以說它取得了巨大的成功。在季度中期推出「文明的倒退」行銷活動的支持下，我們看到新客戶數量增加，每筆交易的單位數量也健康增長，同時保持了我們上個季度提到的強勁的回頭客購買量。我們的客戶非常喜歡這款躺椅，並認為與競爭對手的產品相比，它具有巨大的價值，這讓我們對未來許多年繼續做出有意義的貢獻充滿信心。

Second, the EverCouch, our first new product platform in over a decade. This elegant and sophisticated entry into the armchair, love seat, and sofa category effectively doubles Lovesac's total addressable market. EverCouch is a true Designed For Life product platform constructed to the highest standards out of the best materials. We believe that it is the best couch on the market, period.

第二，EverCouch，這是我們十多年來第一個新的產品平台。這款優雅精緻的扶手椅、雙人沙發和沙發類別產品有效地使 Lovesac 的總目標市場擴大了一倍。EverCouch 是真正的「為生活而設計」產品平台，採用最好的材料以最高標準打造。我們相信它是市場上最好的沙發，就是這樣。

EverCouch provides a solution for customers whose needs differ from those of a Sactional customer, de-emphasizing modularity, but with more of a focus on style, comfort, maintainability, and ease of use. It has a lower price point as a result of this engineering. EverCouch is beautiful with washable covers, exchangeable arm styles, rapid shipping capabilities, and easy assembly with no tools, of course. Even better is that it leverages Lovesac's established brand equity and couches and comfort seating.

EverCouch 為需求與 Sactional 客戶不同的客戶提供解決方案，不再強調模組化，而是更重視風格、舒適性、可維護性和易用性。由於這項工程，它的價格較低。EverCouch 非常漂亮，具有可清洗的外罩、可更換的扶手樣式、快速的運輸能力，當然，也易於組裝，無需任何工具。更好的是，它利用了 Lovesac 現有的品牌資產以及沙發和舒適的座椅。

Well, after a six-week test-and-learn campaign in suburban Boston, we officially launched EverCouch on lovesac.com and in 27 showrooms on May 7. Initial feedback has been very positive, and our showroom team members are excited. We have not yet turned on the marketing engine since we are refining the sales training based on our learnings, as well as building inventories to support a broader sales push. But it is selling, and we are proud of this and new invention from Lovesac.

好吧，在波士頓郊區進行了為期六週的測試和學習活動後，我們於 5 月 7 日在 lovesac.com 和 27 個展廳正式推出了 EverCouch。初步回饋非常積極，我們的展廳團隊成員非常興奮。我們尚未啟動行銷引擎，因為我們正在根據所學知識改進銷售培訓，並建立庫存以支援更廣泛的銷售推動。但它正在暢銷，我們為 Lovesac 的這項新發明感到自豪。

Marketing, expansion into additional showrooms, and potentially select use of partner channels are all in the works to bolster awareness and appreciation for this exciting new platform from Lovesac. While we tend to focus on the larger product launches, rest assured, we expect to have incremental enhancements to existing products on an ongoing basis as well. For example, as we reach the anniversary of the launch of our wildly successful PillowSac chair in May, we added new wood frame colors, including a darker brown and a gorgeous black.

行銷、擴展更多展廳以及可能選擇使用合作夥伴管道等都在進行中，以提高人們對 Lovesac 這一令人興奮的新平台的認識和欣賞。雖然我們傾向於專注於更大規模的產品發布，但請放心，我們也期望持續對現有產品進行漸進式改進。例如，當我們在五月推出成功的 PillowSac 椅子時，我們增加了新的木框架顏色，包括深棕色和華麗的黑色。

These additions came out of consumer insights and data collected from our current and potential customers. It's a perfect example of how we let research and data inform our innovation to increase our hit rate for success. There is plenty more to come along these lines this year and ongoing.

這些新增內容來自我們從現有和潛在客戶收集的消費者洞察和數據。這是我們如何讓研究和數據指導我們的創新以提高成功率的完美例子。今年以及未來，還會有更多類似的事情發生。

Last but not least, we're making excellent progress on our additional product platforms planned for launch over the coming years, including new rooms of the house beginning in fiscal 2027, which is calendar 2026, by the way. Expansion of our addressable markets and expansion of our brand, this should deepen the relationship that we have with our customers and drive expansion of our business and value creation. We're not quite ready to share all the details yet. Stay tuned. Trust me, we are working on some really exciting stuff.

最後但同樣重要的一點是，我們計劃在未來幾年推出的其他產品平台方面取得了巨大進展，包括從 2027 財年（順便說一下，是 2026 年日曆）開始推出的新房間。擴大我們的潛在市場並擴大我們的品牌，這將加深我們與客戶的關係，並推動我們的業務擴展和價值創造。我們尚未準備好分享所有細節。敬請關注。相信我，我們正在研究一些真正令人興奮的東西。

We get a lot of questions about the consumer, including monthly or even weekly trends to try to glean some insight into a fundamental change in trend. It's only been two months since our last earnings call, and honestly, it's too early to make a clear call on any trend change from the data that we're seeing today. The category got a little better in March, weakened a little in April, and the quarter ended right up in line with the average trend since the fall, which is down mid-single digits. That remains our baseline planning for now, but we'll update you when things become more clear.

我們收到了很多關於消費者的問題，包括每月甚至每週的趨勢，試圖了解趨勢的根本變化。距離我們上次的收益電話會議才過去兩個月，老實說，根據我們今天看到的數據來明確判斷趨勢變化還為時過早。該類別在 3 月略有好轉，4 月略有減弱，本季最終與秋季以來的平均趨勢一致，下降了中等個位數。這仍然是我們目前的基本計劃，但當情況變得更加明朗時，我們會向您通報。

What I can say is that we remain focused on what we can control. Just like I said earlier, we aim to leverage our secular growth initiatives to drive growth here at Lovesac. We grew in the fiscal first quarter, and as Keith will detail later, we forecast growth for the fiscal second quarter and for the full year, even without the category supporting us.

我可以說的是，我們仍然專注於我們能夠控制的事情。正如我之前所說，我們的目標是利用我們的長期成長計劃來推動 Lovesac 的成長。我們在第一財季實現了成長，正如 Keith 稍後將詳細說明的那樣，即使沒有該類別的支持，我們也預測第二財季和全年都會實現成長。

As for tariffs, we are actively working to mitigate the potential impact, and we believe we can leverage all of the available tools at our disposal to manage that impact. Mary will provide more details momentarily. But given our unique model with high product margins, geographic redundancy, and strong vendor relationships, we believe we can cover the impact within our existing full year guidance, barring any new wildcard scenarios, of course.

至於關稅，我們正在積極努力減輕潛在影響，我們相信我們可以利用所有可用的工具來管理這種影響。瑪麗將立即提供更多詳細資訊。但鑑於我們獨特的模式，包括高產品利潤率、地理冗餘和強大的供應商關係，我們相信我們可以在現有的全年指導範圍內彌補影響，當然，除非出現任何新的未知情況。

In summary, we are committed to delivering on our objectives, leveraging Lovesac's innovative product offerings, strong customer relationships, and operational excellence to grow irrespective of the category in the near term, while maintaining clarity around long-term thinking and value creation. But let me be clear, we believe that when the replacement cycle for comfort seating ramps up and housing turnover reaccelerates, we will be ready to capitalize on it immediately.

總而言之，我們致力於實現我們的目標，利用 Lovesac 的創新產品、牢固的客戶關係和卓越的運營，在短期內實現增長（無論屬於哪個類別），同時保持對長期思考和價值創造的清晰認識。但我要明確一點，我們相信，當舒適座椅的更換週期加快、住房週轉率重新加速時，我們將準備好立即利用它。

We're thrilled to have our new Chief Marketing Officer, Heidi Cooley, now on board. Heidi is already working closely with our teams, developing plans to support our ambition to be the most loved home brand in America by 2030, while driving profitable sales growth simultaneously. We look forward to sharing more in the future.

我們非常高興新任首席行銷長 Heidi Cooley 加入我們。Heidi 已經與我們的團隊密切合作，制定計劃來支持我們實現到 2030 年成為美國最受歡迎的家居品牌的宏偉目標，同時推動盈利性銷售增長。我們期待未來分享更多。

Finally, I must thank our entire Lovesac family for their adaptability, their creativity, and commitment to this mission. Launching new product platforms requires extra effort from every single team member, from our touch points to HQ, and that's in addition to navigating tariff uncertainty and a challenging category, to say the least. Every one of you is essential. You're reshaping the home category with products that are designed for life, and thereby creating long-term value for all stakeholders.

最後，我必須感謝我們整個 Lovesac 大家庭的適應能力、創造力以及對這項使命的承諾。推出新的產品平台需要每個團隊成員（從我們的接觸點到總部）付出額外的努力，至少還要應對關稅不確定性和具有挑戰性的類別。你們每一個人都至關重要。您正在使用專為生活而設計的產品重塑家居類別，從而為所有利害關係人創造長期價值。

With that, I'll hand it over to Mary to cover our strategic priorities and progress in more detail.

接下來，我將把主題交給瑪麗，讓她更詳細地介紹我們的策略重點和進展。

Thank you, Shawn, and good morning, everyone. I'll now focus on our second superpower, our customer acquisition engines that are uniquely tailored to each of our Designed For Life platforms, as well as our growth enablers, including our advantage supply chain.

謝謝你，肖恩，大家早安。現在，我將重點介紹我們的第二個超級能力，即針對我們每個 Designed For Life 平台量身定制的客戶獲取引擎，以及我們的成長推動因素，包括我們的優勢供應鏈。

Beginning with customer acquisition engines, our superpower really lies in our ability to leverage different mixes of brand and performance marketing, digital configuration through lovesac.com, incredible showroom experiences, and efficient partnerships to optimally effect by product platform. Done wisely, we can efficiently generate customer awareness, convert that awareness into customers, and ultimately build long-term relationships and brand love.

從客戶獲取引擎開始，我們的超能力實際上在於我們能夠利用不同的品牌和績效行銷組合、透過 lovesac.com 進行的數位配置、令人難以置信的展廳體驗以及高效的合作夥伴關係，以透過產品平台實現最佳效果。如果做得明智，我們可以有效地產生客戶意識，將這種意識轉化為客戶，並最終建立長期關係和品牌熱愛。

Before I dive into each of these components, I'd like to start by highlighting first quarter's growth as an example of the advantage Lovesac derives from our unique mix of customer acquisition engine options. We were pleased to see the return to growth in the business throughout quarter one, with strong quote conversion in our showrooms in particular. We made a conscious decision to lean into our showrooms marginally at the expense of our internet business for two reasons.

在深入探討每個組成部分之前，我想先強調第一季度的成長，以此作為 Lovesac 從我們獨特的客戶獲取引擎選項組合中獲得優勢的一個例子。我們很高興看到第一季業務恢復成長，尤其是我們的展廳報價轉換率強勁。出於兩個原因，我們做出了一個有意識的決定，略微減少對展廳業務的投入，而犧牲了網路業務。

First, we leveraged the strength of our product demos to drive appreciation for new innovations such as the recliner. Second, similar to the end of the fourth quarter, we were able to combat aggressive discounting by competitors through the continued effectiveness of highly relevant personalized offers. We continually refine our mix, letting data drive us towards optimal performance. And with that backdrop, let's spend a few moments on each of the components, starting with brand and performance marketing.

首先，我們利用產品展示的優勢來推動人們對躺椅等新創新產品的欣賞。其次，與第四季末類似，我們能夠透過持續有效的高度相關的個人化優惠來對抗競爭對手的大幅折扣。我們不斷完善我們的組合，讓數據推動我們實現最佳效能。在這樣的背景下，讓我們花點時間討論每個組成部分，從品牌和績效行銷開始。

As Shawn shared, we have tremendous momentum with one of our newest innovations, the reclining seat, supported by a recliner civilization campaign in quarter one. It was developed to be a social first campaign, leveraging influencers and content creators to create a cultural moment to exponentially grow new customer awareness, and it worked. The campaign generated 5 billion earned impressions, and over 600% increase in engagement across all digital channels and almost 700 PR articles.

正如肖恩所分享的，我們的最新創新之一——斜倚式座椅，在第一季度的斜倚式座椅文明運動的支持下，獲得了巨大的發展勢頭。它被開發為一項社交優先活動，利用有影響力的人和內容創造者來創造一個文化時刻，以成倍地提高新客戶的意識，並且它成功了。該活動產生了 50 億次曝光量，所有數位管道的參與度增加了 600% 以上，並發表了近 700 篇公關文章。

In quarter one, we also adjusted our marketing allocations, enhancing our top of funnel awareness program, especially through search and social media, to balance that with mid and lower funnel conversion tactics. This also worked, having produced a strong 25% increase in traffic to the website as customers start their discovery about our products, an investment we believe will pay off over time as that awareness matures. We'll continue to test and learn throughout the funnel and in particular on new awareness tactics as we concentrate on building the Lovesac brand and introducing new innovations.

在第一季度，我們還調整了行銷分配，增強了我們的漏斗頂部意識計劃，特別是透過搜尋和社交媒體，以平衡中下漏斗轉換策略。這項措施也取得了成效，隨著客戶開始了解我們的產品，網站流量強勁增長了 25%，我們相信，隨著客戶認知度的不斷提高，這項投資將獲得回報。我們將繼續在整個管道中進行測試和學習，特別是新的認知策略，因為我們專注於建立 Lovesac 品牌並引入新的創新。

Building on the first quarter's momentum with new customers, in quarter two, we launched our latest television commercial featuring our recliner in action. Be on the watch for more of these cultural moments in the upcoming months for PillowSac accent chair (inaudible), and our newly launched platform, EverCouch, to name just a few. CTV also continues to be a strong lever that we plan to optimize over the course of the year with efficiencies and linear TV, offsetting some of the inflationary pressure in search.

在第一季新客戶不斷湧現的良好勢頭的基礎上，我們在第二季度推出了最新的電視廣告，展示了我們的躺椅的實際效果。在接下來的幾個月裡，請關注更多這樣的文化時刻，例如 PillowSac 扶手椅（聽不清楚）和我們新推出的平台 EverCouch，等等。CTV 也將繼續成為一個強大的槓桿，我們計劃在今年內透過效率和線性電視進行最佳化，以抵消搜尋中的部分通膨壓力。

Second is our digital configurations and how we bring Lovesac to life online. As we continue to invest in optimizing the digital experience both in technology and improving the customer journey, we're seeing a return on our investment at all phases of our flywheel. Our re-platforming to AdobeX has helped us improve our SEO, bringing qualified visitors to the website and allowing us to reinvest marketing spend with organic search visits to the website, growing almost 40% year over year in quarter one.

第二是我們的數位化配置以及我們如何讓 Lovesac 在網路上煥發生機。隨著我們繼續投資於優化技術數位體驗和改善客戶旅程，我們在飛輪的各個階段都看到了投資回報。我們重新轉向 Adob​​eX 平台幫助我們改善了 SEO，為網站帶來了合格的訪客，並使我們能夠透過網站的自然搜尋訪問重新投資行銷支出，第一季同比增長近 40%。

Our customer re-engagement center, MyHUB, is being progressively improved, always with the goal of being a frictionless omni-channel experience for new and repeat purchases. In quarter one, repeat purchases increased over 20% to last year, with over 40% more customers accessing their accounts. Perhaps more importantly, these platform investments enable us to launch new products and platforms effectively. And I don't mean only under the skin, but rather customer facing. EverCouch was the impetus for the newly designed homepage and the updated website navigation.

我們的客戶重新參與中心 MyHUB 正在逐步改進，始終以成為新客戶和重複購買者的無摩擦全通路體驗為目標。第一季度，重複購買量比去年增加了 20% 以上，而造訪其帳戶的客戶增加了 40% 以上。或許更重要的是，這些平台投資使我們能夠有效地推出新產品和平台。我指的不只是皮膚下，而是面向客戶。EverCouch 是新設計主頁和更新網站導航的動力。

As of May, customers can now more quickly and intuitively find the categories and specific products they're looking for with a distinction between Sactional, couches, and chairs. Early indicators show a more engaged customer converting at a higher rate with improved customer satisfaction overall. And we will learn more as we ramp up investment in the customer acquisition engines throughout this year, including our formal EverCouch marketing campaign launch in the second half of this year.

自 5 月起，顧客可以更快、更直觀地找到他們正在尋找的類別和特定產品，並區分 Sactional、沙發和椅子。早期指標顯示，參與度更高的客戶轉換率更高，整體客戶滿意度也提高。隨著我們今年加大對客戶獲取引擎的投資，包括今年下半年正式啟動的 EverCouch 行銷活動，我們將了解更多資訊。

Third is our showroom experience, the physical brand amplifiers of our designs for life products. The linchpin of our omni-channel model with the product platforms conveniently accessible in real life. Just a few weeks ago, we evolved our product demo to accommodate the EverCouch. This continued evolution of our signature selling process allows our customers to experience all of the features and the benefits of our product platforms and drive the conversion improvements I shared earlier.

第三是我們的展廳體驗，這是我們為生活而設計的產品的實體品牌擴大機。我們的全通路模式的關鍵在於產品平台在現實生活中可以輕鬆存取。就在幾週前，我們改進了我們的產品演示以適應 EverCouch。我們標誌性銷售流程的持續改進使我們的客戶能夠體驗到我們產品平台的所有功能和優勢，並推動我先前分享的轉換率提升。

Shawn and I spent a lot of time in the field listening to our teams, and we were just together in the field, fine tuning the demo to incorporate all the great feedback from our soft launch. While any showroom can sell EverCouch already, we plan to scale physical inclusion of an EverCouch product to approximately 100 showrooms later this summer, allowing every major DMA to showcase this platform.

肖恩和我花了很多時間在現場聽取我們團隊的意見，我們一起在現場對演示進行微調，以吸收我們在試運行中得到的所有良好反饋。雖然任何展廳都可以銷售 EverCouch，但我們計劃在今年夏天稍後將 EverCouch 產品的實體覆蓋範圍擴大到大約 100 個展廳，以便每個主要的 DMA 都能展示這個平台。

I'd also like to highlight a recently launched update to our performance-based compensation model for our field teams, now inclusive of a blend of individualized metrics, in addition to the long-standing company-wide metrics. We're already seeing benefits coming through in quarter one, and it was just great to see how motivated our teams are to drive their business and the brand potential.

我還想強調一下我們最近針對現場團隊推出的基於績效的薪酬模式的更新，除了長期存在的全公司指標外，現在還包含個性化指標。我們已經看到了第一季帶來的收益，並且很高興看到我們的團隊如此積極地推動他們的業務和品牌潛力。

Finally, complimenting our showrooms is our partnership model including Costco and Best Buy. We recently completed a detailed strategic planning review that considered the optimization of our customer acquisition engine options. Coming out of this review, we made the decision to end our Best Buy partnership after five successful years together.

最後，與我們的展廳相得益彰的是我們的合作模式，包括 Costco 和 Best Buy。我們最近完成了詳細的策略規劃審查，其中考慮了我們的客戶獲取引擎選項的最佳化。經過這次審查，我們決定終止與百思買五年的成功合作。

When we began this partnership in 2020, Lovesac had less than 100 showrooms across the country, and Best Buy helped us to quickly expand distribution points and establish credibility in home audio and tech, all while we also helped to reinforce their leadership in tech-enabled product categories. Fast forward five years, and our showroom footprint has tripled, providing convenient accessibility for our current and future customers to experience Lovesac and StealthTech.

當我們在 2020 年開始這項合作時，Lovesac 在全國擁有不到 100 個展廳，百思買幫助我們迅速擴展了分銷點並在家庭音響和科技領域建立了信譽，同時我們也幫助他們鞏固了在科技型產品類別中的領導地位。五年過去了，我們的展廳面積擴大了兩倍，為我們現在和未來的客戶提供了體驗 Lovesac 和 StealthTech 的便利性。

We have immense confidence in our ability to provide an excellent customer experience and deliver more profitable growth through our own digital and showroom ecosystem as well as with our Costco partnership. In conjunction with our decision, we estimate booking a non-recurring charge of approximately $2 million in the second quarter, partially offset by improved profitability in the second half.

我們對自己的能力充滿信心，我們有能力透過自己的數位和展廳生態系統以及與 Costco 的合作夥伴關係提供卓越的客戶體驗並實現更盈利的成長。結合我們的決定，我們估計第二季將計入約 200 萬美元的非經常性費用，但下半年盈利能力的提高將部分抵消這一費用。

And regarding Costco, it represents the sizable share of our partnership model. With Costco's more than 120 million members and strong traffic, our roadshow model allows us to activate pop-ups in its clubs while owning 100% of the customer data and relationship. We'll continue to expand our assortment with Costco this year, and we plan a 15% increase in roadshows over last year, further demonstrating our unique ability to sell premium products in approximately 100 square feet.

就 Costco 而言，它佔據了我們合作模式相當大的份額。憑藉 Costco 超過 1.2 億會員和強大的客流量，我們的路演模式使我們能夠在其俱樂部中啟動彈出窗口，同時擁有 100% 的客戶數據和關係。今年，我們將繼續與 Costco 合作擴大產品種類，並計劃將路演次數比去年增加 15%，進一步展示我們在約 100 平方英尺的空間內銷售優質產品的獨特能力。

When combined, these four elements of our customer acquisition engines create an unmatched customer experience that drives brand love. We're going to reinforce our brand experience and customer satisfaction further by launching customer facing services, and we are excited to share that Loved by Lovesac, our new resale platform, is officially live in Texas.

我們的客戶獲取引擎的這四個要素結合在一起，創造了無與倫比的客戶體驗，從而推動了品牌的喜愛。我們將透過推出面向客戶的服務來進一步加強我們的品牌體驗和客戶滿意度，我們很高興地告訴大家，我們的新轉售平台 Loved by Lovesac 已在德克薩斯州正式上線。

This first launch marks a significant step in our long-term commitment to sustainability, the circular and innovation in home furnishings. By giving pre-love products a life, we're not just reducing waste, we are reinforcing our promise to design products that are built to last, designed to evolve and be loved again. This is also a critical foundation for us to launch trade in services, which we are planning for later this year, which will help unlock both trade in and trade up for our new and loyal customers. And this represents an important milestone in our journey towards a more responsible and resilient future for Lovesec.

此次首次發布標誌著我們長期致力於家居裝飾的可持續性、循環性和創新性邁出了重要一步。透過賦予二手產品生命，我們不僅減少了浪費，還強化了我們的承諾，設計出經久耐用、不斷發展並再次受到喜愛的產品。這也是我們推出以舊換新服務的重要基礎，我們計劃在今年稍後推出這項服務，這將有助於為我們的新舊客戶解鎖以舊換新和以舊換新。這是我們為 Lovesec 邁向更負責任、更具韌性的未來的重要里程碑。

And key to us sustaining all of this profitable growth over the long term are our growth enablers. And I'll just briefly mention our supply chain, a critical component of our financial success and one built for scalability in advance of new products and platform introductions. Over the past few years, we have transformed our network strategy and carrier models, including implementation of both transportation and order management systems. We are now well under way with our work on optimizing our warehouse and outbound logistics programs, consistent with what we've shared previously.

我們長期維持所有這些獲利性成長的關鍵是我們的成長推動因素。我將簡要介紹我們的供應鏈，它是我們財務成功的關鍵組成部分，也是在推出新產品和平台之前為可擴展性而構建的。在過去的幾年裡，我們改變了網路策略和承運商模式，包括實施運輸和訂單管理系統。目前，我們正在順利推進倉庫和出站物流計畫的優化工作，這與我們先前分享的內容一致。

Regarding Paris, as we mentioned back in April, we have four key levers to help mitigate our exposure, and we have made significant progress on each. The first is focused on working with our long-term vendors for concessions, and we have received support from every key vendor. The second is the work to further diversify manufacturing away from China. We remain on track to be about 13% for the full fiscal year, but with an exit rate substantially lower than that.

關於巴黎，正如我們在四月提到的那樣，我們有四個關鍵槓桿來幫助減輕我們的風險，並且我們在每個槓桿上都取得了重大進展。一是注重與長期供應商合作爭取優惠，並得到了每個重點供應商的支持。第二是進一步推動製造業從中國多元化發展。我們整個財年的回報率仍有望達到 13% 左右，但退出率將遠低於這一水平。

Third, given the strength of our brand and the fact that our last price increase was a narrow one in 2023, we executed some surgical and strategic price increases last month and are pleased with the performance since being implemented. We feel very good about our value proposition, as many other brands have taken multiple increases in the past two years. And the final initiative was looking at other cost efficiencies, and the teams have continued to drive this work.

第三，鑑於我們品牌的實力以及我們上一次在 2023 年進行的幅度較小的價格上漲，我們上個月進行了一些精準的策略性價格上漲，並對實施以來的表現感到滿意。我們對我們的價值主張感到非常滿意，因為許多其他品牌在過去兩年中也實現了多次提升。最後的舉措是考慮其他成本效率，團隊一直在繼續推動這項工作。

We're currently leveraging all of these levers at differing degrees, with flexibility to refine them further, depending on the final outcomes of tariff implementations. Combined with the flexibility gained by building higher than normal inventory ahead of this potential, we feel that our four-pronged approach should mitigate the majority of the current tariff pressure.

我們目前正在不同程度地利用所有這些手段，並根據關稅實施的最終結果靈活地進一步完善它們。結合透過在此潛力之前建立高於正常水平的庫存而獲得的靈活性，我們認為我們的四管齊下的方法應該可以緩解當前的大部分關稅壓力。

And with that, I will hand over to Keith to share more on our financial performance and outlook.

接下來，我將把時間交給 Keith，讓他進一步分享我們的財務表現和前景。

Thanks, Mary. Let's jump right into a quick review of first quarter followed by our outlook for the rest of fiscal '26. As we begin with performance metrics, please note that all references to the first quarter refer to fiscal '26 unless otherwise noted.

謝謝，瑪麗。讓我們快速回顧一下第一季度，然後展望 26 財年剩餘時間的情況。當我們開始介紹績效指標時，請注意，除非另有說明，所有對第一季的引用均指 26 財年。

Net sales increased $5.8 million or 4.3% to $138.4 million in the first quarter compared to the prior year period. Showroom net sales increased $14.9 million or 18.2% to $96.5 million in the first quarter compared to the prior year period, driven by an increase of 2.8% in omni-channel comparable net sales and the net addition of 21 new showrooms. Internet net sales decreased $3.3 million or 8.9% to $33.3 million in the first quarter compared to the prior year period. Other net sales, which include pop-up shop and shop, and Opioid Box inventory transactions, decreased $5.8 million or 40.5% to $8.6 million in the first quarter compared to the prior year period. The decrease was primarily attributable to the company's decision not to engage in any Barner transactions during the current period.

第一季淨銷售額與去年同期相比增加 580 萬美元，成長 4.3%，達到 1.384 億美元。第一季展廳淨銷售額與去年同期相比增加了 1,490 萬美元（18.2%），達到 9,650 萬美元，這得益於全通路可比淨銷售額增長 2.8% 以及淨增 21 個新展廳。第一季網路淨銷售額與去年同期相比減少 330 萬美元，或 8.9%，至 3,330 萬美元。其他淨銷售額（包括快閃店和商店以及阿片類藥物盒庫存交易）在第一季與去年同期相比減少了 580 萬美元（即 40.5%），至 860 萬美元。下降的主要原因是該公司決定在本期間不參與任何 Barner 交易。

Byproduct category in the first quarter, our Sactional net sales increased 4.5%, sack net sales increased 6.4%, and our other net sales, which includes decorative pillows, blankets, and accessories, decreased 17.1% over the prior year period.

以產品類別來看，第一季我們的 Sactional 淨銷售額成長了 4.5%，麻袋淨銷售額成長了 6.4%，而我們的其他淨銷售額（包括裝飾枕頭、毛毯和配件）比去年同期下降了 17.1%。

Gross margin decreased 60 basis points to 53.7% of net sales in the first quarter of fiscal '26 versus 54.3% in the prior year period, primarily driven by a decrease of 230 basis points in product margin, driven by higher promotional discounting, partially offset by decreases of 130 basis points in inbound transportation costs and 40 basis points in outbound transportation and warehousing costs.

26財年第一季度，毛利率下降60個基點至淨銷售額的53.7%，而去年同期為54.3%，這主要是由於產品利潤率下降230個基點，促銷折扣增加所致，但入境運輸成本下降130個基點，出境運輸和倉儲成本下降40個基點，部分抵消了這一影響。

SG&A expenses a percent of net sales was 48.5% in the first quarter of fiscal 26% versus 51.6% in the prior year period. The decreased percentage is primarily related to lower professional fees, credit card fees, computer expenses, and other overhead costs, and higher net sales. The decrease in selling general and administrative expense dollars was primarily related to decreases of $3.8 million in professional fees and insurance matters, $0.9 million in credit card fees, $0.7 million in computer expense, and $0.3 million in other overhead costs, partially offset by increases of $2.2 million in payroll, $1.3 million in equity-based compensation, and $0.9 million in rent.

本財年第一季度，銷售、一般及行政費用佔淨銷售額的 48.5%，去年同期為 51.6%。百分比下降主要與專業費用、信用卡費用、電腦費用和其他間接費用的降低以及淨銷售額的提高有關。銷售一般及行政費用的減少主要由於專業費用和保險費用減少 380 萬美元、信用卡費用減少 90 萬美元、計算機費用減少 70 萬美元以及其他間接費用減少 30 萬美元，但工資增加 220 萬美元、股權激勵增加 130 萬美元以及租金增加 90 萬美元等因素部分抵消了這一減少。

Rent increased $0.9 million related to $1 million of increase in rent expense from our net addition of 21 showrooms, partially offset by a $0.1 million reduction in percentage rent. We estimate non-recurring incremental fees associated with the restatement of prior period financials were approximately $0.6 million in the first quarter.

租金增加了 90 萬美元，與我們淨增加 21 個展廳導致的租金費用增加 100 萬美元有關，但百分比租金減少 10 萬美元部分抵消了這一影響。我們估計，第一季與重述前期財務狀況相關的非經常性增量費用約為 60 萬美元。

Advertising and marketing expenses increased $0.6 million or 3.3% to $18.6 million for the first quarter compared to the prior year period. Advertising and marketing expenses remained relatively flat at 13.4% of net sales in the first quarter as compared to 13.6% of net sales in the prior year period. Operating loss for the quarter was $15 million compared to $17.9 million in the first quarter of last year, driven by the factors we just discussed.

第一季廣告和行銷費用與去年同期相比增加了 60 萬美元，即 3.3%，達到 1,860 萬美元。第一季廣告和行銷費用佔淨銷售額的 13.4%，與去年同期的 13.6% 相比，保持相對穩定。本季營業虧損為 1,500 萬美元，而去年第一季為 1,790 萬美元，這主要是受我們剛才討論的因素影響。

Before we turn our attention to net loss, net loss for common share and adjusted EBITDA, please refer to the terminology and reconciliation between each of our adjusted metrics and the most directly comparable GAAP measurements in our earnings release issued earlier this morning.

在我們將注意力轉向淨虧損、普通股淨虧損和調整後的 EBITDA 之前，請參閱我們今天早上發布的收益報告中每個調整後指標與最直接可比較的 GAAP 指標之間的術語和對帳。

Net loss for the quarter was $10.8 million or negative $0.73 per common share compared to net loss of $13 million or negative $0.83 per common share in the prior year period. During the first quarter, we recorded an income tax benefit of $3.8 million as compared to $4.2 million in the prior year period. Adjusted EBITDA loss for the quarter was $8.4 million as compared to $10.3 million in the prior year period.

本季淨虧損為 1,080 萬美元，即每股虧損 0.73 美元，而去年同期淨虧損為 1,300 萬美元，即每股虧損 0.83 美元。第一季度，我們記錄的所得稅收益為 380 萬美元，而去年同期為 420 萬美元。本季調整後的 EBITDA 虧損為 840 萬美元，而去年同期為 1,030 萬美元。

Turning to our balance sheet, we ended the first quarter with a healthy balance sheet to provide substantial flexibility for Lovesac to invest in growth to enhance long-term value creation for shareholders. We reported $26.9 million in cash and cash equivalents while retaining $36 million in committed availability with no borrowings on our recently amended credit facility.

談到我們的資產負債表，我們在第一季結束時擁有健康的資產負債表，這為 Lovesac 投資成長提供了相當大的靈活性，從而增強了股東的長期價值創造。我們報告的現金和現金等價物為 2690 萬美元，同時保留了 3600 萬美元的承諾可用資金，並且我們最近修改的信貸安排中沒有借款。

First, our total merchandise inventory levels are in line with our projections, somewhat higher than necessary, given our intentional build ahead of tariff uncertainty. We expect to begin reducing excess inventory levels in the second quarter, which we estimate, will help offset working capital requirements for building EverCouch weeks of stock through the second half of the fiscal year. We feel very good about both the quality and quantity of our inventory and our ability to maintain industry leading in stock positions and delivery times.

首先，考慮到我們在關稅不確定性之前有意增加庫存，我們的商品總庫存水準與我們的預測一致，略高於必要的水準。我們預計將在第二季度開始減少過剩庫存水平，我們估計，這將有助於抵消在本財年下半年建立 EverCouch 週庫存所需的營運資金需求。我們對庫存的品質和數量以及保持庫存狀況和交貨時間行業領先的能力感到非常滿意。

Second, consistent with our strategy to allocate excess capital opportunistically with a focus on long-term value creation and enhancing returns on capital, during the quarter, we repurchased approximately 306,000 shares of our common stock at an average price of $19.57 for approximately $6 million. This leaves approximately $14.1 million remaining under our existing share repurchase authorization. Please refer to our earnings press release for other details on our first quarter financial performance.

其次，根據我們適時配置過剩資本的策略，重點是創造長期價值和提高資本回報率，在本季度，我們以平均 19.57 美元的價格回購了約 306,000 股普通股，總價值約為 600 萬美元。這使得我們現有的股票回購授權剩餘約 1,410 萬美元。有關我們第一季財務業績的其他詳細信息，請參閱我們的收益新聞稿。

So now for our outlook, as Shawn mentioned, while there is weekly and monthly variations such as a better March but a weaker April, the underlying category trends generally seem to revert toward negative mid-single digits on average for the last seven or eight months. As such, we're prudently maintaining our assumption and our plans for a 5% full year category decline.

因此，現在就我們的展望而言，正如肖恩所提到的，雖然每周和每月都存在變化，例如 3 月份表現較好，但 4 月份表現較弱，但過去七八個月，基本類別趨勢似乎普遍回落至平均負中個位數。因此，我們謹慎地維持我們的假設和計劃，即全年類別下降 5%。

Additionally, we have many secular tailwinds helping counter that category outlook and providing optimism. These range from annualization to fiscal '25 major product launches, our recent launch of EverCouch, a reboot of our marketing strategies under the new leadership, growth in physical showrooms, new tools for relationship management, and more.

此外，我們還有許多長期的順風因素有助於抵消這種類別前景並提供樂觀情緒。這些包括年度化到 25 財年的主要產品發布、我們最近推出的 EverCouch、新領導層下行銷策略的重啟、實體展廳的成長、關係管理的新工具等等。

For the full year fiscal 26, we are reaffirming our guidance. Please note that as Mary outlined, we have many arrows in our quiver with respect to managing tariff impacts. We're actively pursuing some combination of all of those four options that she outlined, and we believe we can manage tariff impacts within the full year ranges. That said, the exact amount of each mitigation option we deploy will depend on the ultimate specific tariffs implemented. So as you think about the full year guidance, there is potential for an upward bias to net sales and a downward bias to gross margin, getting us to the same adjusted EBITDA, net income and diluted EPS levels, again, depending on the ultimate tariff outcomes.

對於 26 財年全年，我們重申我們的指導。請注意，正如瑪麗所概述的，在管理關稅影響方面，我們有很多辦法。我們正在積極尋求她概述的所有四種選擇的組合，並且我們相信我們可以在全年範圍內控制關稅影響。也就是說，我們部署的每種緩解措施的具體金額將取決於最終實施的特定關稅。因此，當您考慮全年指引時，淨銷售額可能會向上偏差，而毛利率可能會向下偏差，從而使我們達到相同的調整後 EBITDA、淨收入和稀釋每股收益水平，這同樣取決於最終的關稅結果。

Please also note that both our full year and second quarter guidance metrics include the impact of the write-off associated with the ending of the relationship with Best Buy, which we currently estimate to be approximately $2 million pre-tax. This non-recurring one-time expense increases SG&A and reduces net income in EPS, though it does not impact the adjusted EBITDA or our guidance given its non-recurring nature.

另請注意，我們的全年和第二季度指導指標均包括與百思買終止合作關係相關的註銷的影響，我們目前估計該影響約為稅前 200 萬美元。這種非經常性一次性費用會增加銷售、一般和行政費用，並減少每股收益中的淨收入，但考慮到其非經常性質，它不會影響調整後的 EBITDA 或我們的指導。

Specifically for the full year, we estimate net sales of $700 million to $750 million. We expected adjusted EBITDAA between $48 million and $60 million dollars. This includes gross margins of approximately 59%, advertising and marketing of approximately 12.5% as a percent of net sales, and SG&A of approximately 41% as a percent of net sales. We estimate net income to be between $13 million and $22 million. We estimate diluted income for common share in the range of $0.80 to $1.36, and approximately 16.3 million estimated diluted weighted average shares outstanding.

具體來說，我們預計全年淨銷售額為 7 億至 7.5 億美元。我們預計調整後的 EBITDAA 在 4800 萬美元至 6000 萬美元之間。其中包括約 59% 的毛利率、約佔淨銷售額 12.5% 的廣告和行銷費用以及約佔淨銷售額 41% 的銷售、一般及行政費用。我們估計淨收入在 1300 萬美元至 2200 萬美元之間。我們估計普通股的稀釋收益在 0.80 美元至 1.36 美元之間，預計稀釋加權平均流通股數約為 1,630 萬股。

For the fiscal second quarter, we estimate net sales of $157 million to $166 million, representing low-single digit revenue growth at the midpoint and fully representative of all our near-term plans for tariff mitigation. We expect a just at EBITDA lost between $2 million and $7 million. This includes gross margins of approximately 55% to 56%, advertising and marketing of approximately 15% as a percent of net sales and SG&A of approximately 47% as a percent of net sales. We estimate net loss to be $8 million to $12 million. We estimate basic loss per common share to be $0.58 to $0.83, with 14.6 million weighted average shares outstanding.

對於第二財季，我們預計淨銷售額為 1.57 億美元至 1.66 億美元，中間值代表低個位數收入增長，並完全代表了我們所有近期的關稅減免計劃。我們預計 EBITDA 損失將在 200 萬至 700 萬美元之間。其中包括約 55% 至 56% 的毛利率、約佔淨銷售額 15% 的廣告和行銷費用以及約佔淨銷售額 47% 的銷售、一般及行政費用。我們估計淨虧損為 800 萬至 1,200 萬美元。我們估計每股普通股基本虧損為 0.58 美元至 0.83 美元，流通股數為 1,460 萬股加權平均數。

In summary, stabilization of the category and an eventual return to category growth are ahead of us, even if that timing remains unclear at the moment. While in this category five, we are balancing prudence and efficiency with our beliefs that it's essential to stay focused on the big picture. That's the massive long-term opportunity for tremendous value creation for all Lovesac stakeholders. We are building the Lovesac brand and investing in new product innovation that spans style, function, and new categories to support a powerful multi-year secular growth outlook with macro upside exposure as icing on the cake. With that, over to you, operator.

總而言之，儘管目前具體時間尚不明確，但該類別的穩定和最終恢復成長就在我們眼前。在這第五類中，我們在審慎和效率之間取得平衡，我們相信專注於大局至關重要。對於 Lovesac 的所有利害關係人來說，這是一個創造巨大價值的長期巨大機會。我們正在打造 Lovesac 品牌，並投資於涵蓋風格、功能和新類別的新產品創新，以支持強勁的多年長期成長前景，而宏觀上行風險則錦上添花。現在，就交給你了，接線生。

(Operator Instructions)

（操作員指示）

Michael Baker, D.A. Davidson.

麥可貝克、D.A.戴維森。

Okay, thanks. I wanted to ask you about the promotional environment. You referred to gross margins being a little bit less than expected because of what you're seeing promotionally. So if you could talk about what you're seeing from competitors and if, correct me if I'm wrong, but I think the gross margin was lower than expected in the first quarter relative to the guys you gave last quarter, yet you've maintained the full year gross margin outlook. What is, I guess, better, or what gets better later in the year in the growth bars is such that you'll be in line. Thanks.

好的，謝謝。我想問一下關於促銷環境的問題。您提到，根據促銷情況，毛利率略低於預期。因此，如果您可以談談您從競爭對手那裡看到的情況，如果我錯了，請糾正我，但我認為第一季的毛利率低於預期，相對於上個季度的毛利率，但您仍然維持了全年毛利率的預期。我認為，更好的情況，或者今年晚些時候增長欄中會變得更好的情況，就是你會保持一致。謝謝。

Hey, Mike. It's Mary. I'll take the first part just around the promotional environment and then I'll let Keith talk a little bit more on the gross margins.

嘿，麥克。是瑪麗。第一部分我將只討論促銷環境，然後讓 Keith 再多談談毛利率。

So I think very similar to what we had shared back in April, we still see discount levels for the category to be incredibly high. They still didn't come down from the peak, and they're up year over year by at least kind of 400 basis points. You're seeing many competitive. There's kind of the 40%, 45%. And I think as we've always shared in the past, as long as we have a 3 in front of our key promotions at those 10 pole moments, we see a lot of success.

因此，我認為與我們 4 月分享的情況非常相似，我們仍然看到該類別的折扣水平非常高。它們仍未從高峰迴落，並且比去年同期上漲了 400 個基點。您會看到許多競爭對手。大概是 40%、45%。我認為，正如我們過去一直分享的那樣，只要我們在這 10 個關鍵時刻的關鍵促銷活動前面有 3，我們就會取得很大的成功。

I think the second thing is I've shared is that we're also getting a lot sharper around the personalized promotions that really allow us to understand what kind of what's on our customers' minds, what they're looking to do, drive them to the showroom so they get to do a demo. That way, we actually get to really unveil a lot more around the innovation we have and see quite a bit of trade up. So we've planned for within the guidance that kind of continued competitive environment from a promotions point of view. And then, I'll hand to Keith to talk a bit more about the gross margin.

我認為我分享的第二件事是，我們在個人化促銷方面也變得更加敏銳，這讓我們能夠真正了解客戶的想法、他們想要做什麼，從而吸引他們到展廳，讓他們進行演示。這樣，我們實際上就可以真正揭示更多有關我們擁有的創新的信息，並看到相當多的交易成長。因此，從促銷的角度來看，我們在指導範圍內規劃了這種持續的競爭環境。然後，我將讓 Keith 進一步談論毛利率。

Sure thing, thanks. And Mike, really what it boils down to is the timing of all those different levers that Mary and I talked about just a couple of minutes ago. So when you think about, for example, what our geographic reliance is on China, right? It starts off much higher than it ends the year, averaging to the 13%. There have been -- long have been tariffs on China so that piece mitigates.

當然可以，謝謝。麥克，實際上，問題的關鍵在於瑪麗和我幾分鐘前談到的所有不同槓桿的時機問題。因此，當您考慮例如我們在地理上對中國的依賴程度時，對嗎？年初的成長率比年末的成長率高得多，平均為 13%。長期以來，美國一直對中國徵收關稅，因此這一問題有所緩解。

Another one is vendor contributions. We've been working with them. That started the year off with none, but as the tariff stuff has come into picture, we've worked with them on plans that develop through the year. Another one is pricing. So we've been doing a lot of work, as Mary mentioned, thinking through our relative pricing positioning within the market and ways that we could put ourselves into a proper position where the value proposition that we represent remains extremely strong and the value is really compelling to those customers that plays out through the year and potentially even at greater levels depending on where those tariffs end up.

另一個是供應商貢獻。我們一直在與他們合作。今年年初我們沒有任何進展，但隨著關稅問題的出現，我們與他們合作制定了全年計劃。另一個是定價。因此，正如瑪麗所提到的那樣，我們一直在做大量工作，思考我們在市場中的相對定價定位，以及如何將我們自己置於適當的位置，使我們所代表的價值主張仍然非常強大，並且價值對那些全年發揮作用的客戶來說確實具有吸引力，甚至可能在更高的水平上發揮作用，這取決於這些關稅的最終水平。

So when we think through what that total planning is, you get the cost associated with all of this stuff first before you get the benefit, which kind of folds into the mix over the course of the year. So there's a lot behind this that builds up to this, but we feel very good about that. And hopefully, that makes some sense.

因此，當我們仔細考慮總體規劃時，您會先考慮與所有這些相關的成本，然後才會獲得收益，而收益會在一年的時間內逐漸累積起來。因此，這背後有許多因素促成了這一結果，但我們對此感到非常高興。希望這能有些道理。

It does. That does make sense. If I could ask one more, just -- if possible, any more color on EverCouch, which has been in stores for five weeks, I think the language you said is feedback has been very positive, but you know, I'm wondering if you're willing to share anything on sales or anything surprising in terms of what the customers are telling you about that product.

確實如此。這確實有道理。如果我可以再問一個問題，如果可能的話，請問您對 EverCouch 有什麼進一步的了解嗎？該產品已經在商店銷售了五週，我認為您所說的反饋非常積極，但您知道，我想知道您是否願意分享有關銷售的任何信息，或者就客戶告訴您的有關該產品的任何令人驚訝的信息。

Yeah, thank you. It's too early -- this is Shawn. It's too early to comment too much on sales other than we're really pleased with it and our internal goals are being exceeded. We feel really good about the product.

是的，謝謝。太早了——我是肖恩。現在對銷售情況發表太多評論還為時過早，但我們對銷售情況非常滿意，而且我們的內部目標已經超額完成。我們對該產品感覺非常好。

I think the main headline with it because it's only been a few weeks and obviously in sort of a test phase and only a a few showrooms physically, is that the -- it's a whole new platform introduction. I know it seems like a strange thing for a company that's kind of famous for couches. Yeah, crassly speaking, we actually only sell Sactional heretofore. And so, to have this sofa, loveseat chair solution that operates very differently than Sactional, which is, of course, the product we've been selling for a couple of decades, and have it come in with zero quality issues, no concerns on construction design because you know this is a platform we'll sell against for the next few decades as we do things at Lovesac.

我認為它的主要標題是因為它只過了幾個星期，顯然處於測試階段，並且只有幾個實體展廳，這是一個全新的平台介紹。我知道，對於一家以沙發聞名的公司來說，這似乎是一件奇怪的事。是的，粗俗地說，我們迄今為止實際上只銷售 Sactional。因此，這款沙發、雙人沙發解決方案的操作方式與 Sactional 截然不同，當然，Sactional 是我們幾十年來一直在銷售的產品，而且它沒有任何品質問題，也不用擔心結構設計，因為你知道，這是我們未來幾十年在 Lovesac 銷售時會針對的平台。

So too early to share much color other than to say it's well received, it's absolutely selling in real time, it's a part of our product mix now, it's going to be for a long time. And we're really excited about how it changes the profile of what's offered in our showrooms. What I mean by that is, when we do our own research, as you know, we're research -- we're a research-led organization as opposed to a merchandiser-led organization. Style and comfort are the main table stakes for comfort seating, and Sactional are fantastic, but obviously have their limitations in terms of what's offered to the customer in a style profile. So EverCouch radically changes that. And we're really pleased with the results, but we'll have a lot more data to share on the next call, I'm sure.

所以現在分享太多顏色還為時過早，只能說它很受歡迎，它絕對是即時銷售的，它現在是我們產品組合的一部分，並且會持續很長一段時間。我們對於它如何改變我們展廳所提供的商品的形象感到非常興奮。我的意思是，當我們進行自己的研究時，如你所知，我們就是一個研究主導的組織，而不是一個由商人主導的組織。風格和舒適度是舒適座椅的主要標準，Sactional 非常棒，但在為客戶提供的風格方面顯然有其局限性。因此 EverCouch 從根本上改變了這一現狀。我們對結果非常滿意，但我確信，下次通話時我們會分享更多數據。

Maria Ripps, Canaccord Genuity.

Canaccord Genuity 的 Maria Ripps。

Great. Good morning and thanks for taking my questions. First, could you maybe expand on your decision to exit your partnership with Best Buy, and does that mean that you'll be sort of relying more on Costco to grow sort of your presence outside of your showrooms? And maybe more broadly, can you talk about sort of a broader approach to distribution partnerships now that you have sort of a much wider sort of physical presence?

偉大的。早上好，感謝您回答我的問題。首先，能否詳細說明退出與百思買合作的決定？這是否意味著您將更依賴好市多來擴大您在展廳之外的影響力？也許更廣泛地說，既然您現在擁有更廣泛的實體存在，您能否談談更廣泛的分銷合作夥伴關係方法？

Yeah, I'll start, and Mary will chime in as well.

是的，我先開始，瑪莉也會加入。

We are really excited about new opportunities for new channels for Lovesac. And as we broaden our product offering, those opportunities are more available to us than ever, and we are in partnership making mode and so it's a really exciting time. The EverCouch especially opens up opportunities for us, given their logistical simplicity to Sactional in many respects, even back through things like POS considerations, delivery considerations, et cetera.

我們對 Lovesac 新頻道的新機會感到非常興奮。隨著我們擴大產品供應，我們獲得的機會比以往任何時候都多，而且我們正處於合作模式，所以這是一個非常令人興奮的時刻。EverCouch 尤其為我們帶來了機遇，因為它在許多方面為 Sactional 提供了物流簡化，甚至在 POS 考慮、交付考慮等方面也提供了簡化。

And we're really also excited to continue to expand the Costco relationship both through new products as well as new sales opportunities. And so, this will be the -- next year and beyond will be time of testing and learning and great diversification, not just from a product perspective, from a channel perspective for Lovesac.

我們也非常高興能夠透過新產品和新的銷售機會繼續擴大與 Costco 的關係。因此，對於 Lovesac 來說，明年及以後將是測試、學習和實現多樣化的時期，不僅從產品角度，而且從通路角度。

Meanwhile, we're really grateful for the Best Buy partnership that we just wrapped up. And it was a fantastic way for us to get exposure to time when we had very few showrooms. There's a fast path to more touch points, and especially important to launch the StealthTech product in a way that really bought Lovesac a ton of credibility in the home audio space. StealtTech is a mainstay of our product offering and will become even more important as we branch into new categories and new rooms, as we've discussed.

同時，我們非常感謝剛剛達成的與百思買的合作關係。當我們的展廳很少的時候，這對我們來說是一種獲得曝光的絕佳方式。有一條快速的途徑可以獲得更多接觸點，尤其重要的是以一種真正為 Lovesac 在家庭音響領域贏得大量信譽的方式推出 StealthTech 產品。StealtTech 是我們產品的主要支柱，正如我們所討論的，隨著我們進入新的類別和新的領域，它將變得更加重要。

And so, we feel like we got everything we needed out of that relationship. At the same time, we have a great relationship with Best Buy and the team there, and it's actually in our long history, our second foray in and out of Best Buy at times that were useful to both brands. And so, life is long and Lovesac's meant to be here for decades and so we look forward to continue to cultivate partnerships out there as they're useful to the brand and our strategy.

因此，我們覺得從那段關係中得到了我們所需要的一切。同時，我們與百思買及其團隊保持著良好的關係，實際上，在我們悠久的歷史中，這是我們第二次進出百思買，這對兩個品牌都有幫助。所以，生命是漫長的，Lovesac 注定會在這裡存在幾十年，因此我們期待繼續培養合作關係，因為它們對品牌和我們的策略有用。

Yeah, I think just to add, I think, we're so clear and sharp in our plan, and I think with all the analysis we did. If you think back five years ago with 91 showrooms and we're now treble that number. It was just a really clear opportunity for us.

是的，我想補充一下，我們的計劃非常清晰和明確，而且我認為我們已經進行了所有的分析。回想一下五年前，我們有 91 個展廳，而現在我們的展廳數量是這個數字的三倍。這對我們來說是一個非常明顯的機會。

You've got 80% of the Best Buy locations are within a 25-mile radius of our showrooms, and we're going to continue expanding the showrooms as we looked at both today and the future. It was very clear that for us to be able to really bring the brand to life, the new platform, obviously with EverCouch that really through our showrooms and the Costco partnership. It was really the best way for us both engaging with customers but also from a profitability point of view because they are obviously expensive to staff and operate with lower volumes in our showrooms.

80% 的百思買門市都位於我們展廳 25 英里範圍內，著眼於現在和未來，我們將繼續擴大展廳。很明顯，為了讓品牌真正煥發生機，我們利用新平台，顯然要透過 EverCouch，透過我們的展廳和與 Costco 的合作，真正讓品牌煥發生機。這確實是我們與客戶互動的最佳方式，而且從獲利的角度來看也是如此，因為顯然員工成本很高，而且我們的展廳的銷售量也較低。

So we have immense confidence. I think one of the big advantages is we do have all the data on our customers so we're able to target any customers that already bought at Best Buy for Lovesac. And obviously, that CRM engine will be very powerful for us as well as local targeting to let customers know in terms of where their nearest showroom is.

因此我們充滿信心。我認為最大的優勢之一是我們確實擁有所有客戶的數據，因此我們能夠定位任何已經在百思買購買 Lovesac 產品的客戶。顯然，CRM 引擎對我們來說非常強大，並且具有本地定位功能，可以讓客戶知道最近的展廳在哪裡。

And obviously, the website that we continue to get sharper and better, and we shared some of that earlier, just enables that omni-channel seamless experience in such a great way. So I only think it's the confidence of our plan that actually made it very clear now is the right time to make that decision. And as Shawn said, we -- we're very grateful to Best Buy and feel very good about the plan going forward and particularly the partnership with Costco. They were just with us in the office just a week or so ago, really looking at our plans going forward in the future and really partnering together, so feel good there.

顯然，我們的網站會不斷變得更加清晰和完善，我們之前也分享過一些內容，它以非常棒的方式實現了全通路無縫體驗。所以我認為，我們對計劃的信心實際上清楚地表明現在是做出這一決定的正確時機。正如肖恩所說，我們非常感謝百思買，對未來的計劃，特別是與好市多的合作感到非常滿意。大約一周前，他們剛剛和我們一起在辦公室，認真研究我們未來的計劃並進行真正的合作，所以感覺很好。

Right, that's very helpful. Thank you. And then secondly, sort of -- I just wanted to ask about sort of tariffs in China and just sort of how does this recent agreement between the recent sort of framework between the US and China sort of influence the likelihood that you will exit China altogether? And if you're still considering that sort of what, how should we think about a possible sort of timeline for that?

對，這非常有幫助。謝謝。其次，我想問中國的關稅問題，以及最近中美達成的框架協議如何影響你們退出中國市場的可能性？如果您仍在考慮這個問題，我們應該如何考慮可能的時間表？

Yeah, look, we have a long and storied relationship with our manufacturers in Asia, China in particular, of course. There's no question that the current tariffs -- the current tariff situation there is -- it's really not viable, and I think that is, I read that, I think that's the point of the tariff situation there, at least for consumer companies like ours. And so, we're grateful to be already diversified out of China.

是的，我們與亞洲，特別是中國的製造商有著長期而深厚的合作關係。毫無疑問，目前的關稅——目前的關稅狀況——確實是不可行的，而且我認為，我讀到過，我認為這就是那裡關稅狀況的重點，至少對於像我們這樣的消費公司來說是這樣。因此，我們很高興能夠實現中國以外的多元化發展。

For us, we can see a path even in the nearest future to essentially manufacture nothing in China, nothing, and get our manufacturing flow completely out of there. We -- we've mostly done that In real time now, and so we have full redundancy and other geographies spread throughout Asia and now increasingly moving toward America. Our point of view is actually not even tariff driven. Our point of view at Lovesac is to remind those who come in and out of following us is to manufacture closer to the users of the product.

對我們來說，即使在不久的將來，我們也能看到一條道路，那就是基本上不在中國進行任何生產，並將我們的製造流程完全轉移到中國。我們 — — 我們現在基本上已經即時完成了這項工作，因此我們擁有完全的冗餘，其他地區遍布亞洲，現在正越來越多地向美國轉移。我們的觀點實際上甚至不受關稅驅動。在 Lovesac，我們的觀點是提醒那些跟隨我們進出的人，製造更貼近產品使用者的產品。

We want to be taking resources over shorter distances, turning them into finished product more sustainably and shipping back to customers over shorter distances. And so, we're driven by that vision regardless of what happens with tariffs, and we are on a path to do exactly that. In fact, as we revamped even our current product line, as it's happening behind the scenes, and explore manufacturing to the lens that I just offered, we believe we have a path to more manufacturing close to the consumer.

我們希望將資源運送到更短的距離，以更永續的方式將其轉化為成品，並在更短的距離內運回給客戶。因此，無論關稅如何變化，我們都會秉持這個願景，並朝著這個目標努力。事實上，當我們改進我們現有的產品線時，就像它在幕後發生的那樣，並探索我剛才提供的鏡頭的製造，我們相信我們有一條道路，讓製造更加貼近消費者。

Meanwhile, we -- as I said, we can be completely out of China and feel very confident in our ability to maintain a contiguous supply chain with no breaks or anything like that. And so, in the nearest term we have a few items that we're still manufacturing there just in a transition mode, but it's diminishing quickly to towards 0.

同時，正如我所說，我們可以完全脫離中國，並且對我們維持連續的供應鏈而不發生中斷或類似情況的能力充滿信心。因此，近期我們仍會在那裡生產一些產品，只是處於過渡模式，但產量正在迅速減少至 0。

Brian Nagel, Oppenheimer.

奧本海默的布萊恩·納格爾。

Hi, good morning. Well, first off, I mean, recognizing that in a very fluid environment. But if you talk about some of the initial successes with these new products, how should we -- to what extent is, I say, I guess, you would use the word upside, upside from these new products baked into the guidance for the balance of the fiscal year?

嗨，早安。嗯，首先，我的意思是，在一個非常不穩定的環境中認識到這一點。但是，如果您談論這些新產品的一些初步成功，我們應該如何——我想，您會在多大程度上用“好處”這個詞，將這些新產品的好處融入到財政年度餘額的指導中？

So I'll kick this one off. The point of our guidance in this particular, like, let's call it cloudy macro period, is to not overly burden any one particular item with some heroic assumption. Like I talked about in my remarks earlier, we have a lot of things working for us. And to be totally transparent, we can achieve the full year guidance with the core products basically be being flat. We don't really need to see growth in the core products, and we can hit those levels set differently. If the new products do very well, we could even see declines in the core products.

因此我將開始這個。在這個特定的、我們稱之為多雲宏觀時期的指導重點是，不要用一些英勇的假設來給任何一個特定的項目施加過重的負擔。正如我之前在演講中提到的，我們有很多事情要做。並且，坦白說，我們可以實現全年預期，核心產品基本上持平。我們實際上並不需要看到核心產品的成長，我們可以透過不同的方式達到這些水準。如果新產品表現得很好，我們甚至可能會看到核心產品的下滑。

There's a lot of different ways we can get there. And that's an essential element to how we're running the business during this period and keeping ourselves in a position of strength, keeping the business healthy, living to fight, another day. We are ready to go as soon as that housing turnover reaccelerates the replacement cycle picks up, all that stuff Shawn talked about, our whole goal here is to be pragmatic and objective managers of this business, maintaining profitability, cash flow, strength, and growth, but retaining the upside for the macro as well.

我們可以透過多種不同的方式來實現這一目標。這是我們在這段期間經營業務、維持實力地位、維持業務健康、持續奮鬥的關鍵要素。一旦住房週轉率重新加速，更換週期加快，我們就準備好了，正如肖恩所說的那樣，我們的整個目標是成為這項業務的務實和客觀的管理者，保持盈利能力、現金流、實力和增長，但也要保留宏觀的上行空間。

We're ready for all that. So it's a balanced approach. Many different scenarios can get us to the full year guidance across existing and new products. And if the macro picks up, hopefully, we all do even better.

我們已經做好了一切準備。所以這是一種平衡的方法。許多不同的場景可以幫助我們獲得現有產品和新產品的全年指導。如果宏觀經濟好轉，希望我們都能做得更好。

That's helpful, Keith. I appreciate it. And then my second question, I guess, is bigger pitch maybe more philosophical, but as we're thinking about, tariffs, and I think, Mary, you mentioned, maybe some price adjustments you've taken. How do you think about the price adjustments needed to potentially offset at least in part tariffs versus what remains a a promotional backdrop within the space?

這很有幫助，基思。我很感激。然後我的第二個問題，我想，是更大的宣傳，也許更具哲學性，但正如我們所考慮的，關稅，我想，瑪麗，你提到過，也許你已經採取了一些價格調整。您如何看待需要進行價格調整以至少部分抵消關稅，以及該領域內仍然存在的促銷背景？

Yeah, no, thank you, Brian. I think the first thing we're always looking at all the levers, and I think what it's clear to us is that people haven't stepped down in terms of on promotions, they're in the 40s, 50s, 60s, we're seeing top sellers going into clearance and then coming back out again. So we know we must have that three in front of us and we continue to test and keep on learning. So I think we're very clear there.

是的，不，謝謝你，布萊恩。我認為我們首先要關注的是所有的槓桿，而且我認為我們清楚的是，人們在促銷方面並沒有減少，他們的促銷力度在 40、50、60 左右，我們看到暢銷商品進入清倉階段，然後又重新上市。所以我們知道我們必須掌握這三個，我們會繼續測驗並不斷學習。所以我認為我們對此非常清楚。

I think when we think about from a pricing point of view, for us, given the strength of the brand, the last price increase we did was just a narrow one back in 2023. When we really step back and look at our overall price positioning, we look at price, we look at quality, we look at our unique features and benefits which are way, superior to so many others. And we also saw many other brands taking multiple price increases in the last few years as well as just very recently. So we saw the opportunities for some surgical price increases, we'll continue to assess it. We're always very focused on making sure we have that competitive price positioning and most of all very strong value.

我認為，從定價的角度考慮，對我們來說，考慮到品牌的實力，我們上次提價只是在 2023 年進行的一次小幅提價。當我們真正退一步審視我們的整體價格定位時，我們會看價格，看質量，看我們獨特的功能和優勢，這些都遠遠優於其他許多產品。我們也看到，過去幾年以及最近，許多其他品牌也多次漲價。因此，我們看到了一些手術價格上漲的機會，我們將繼續評估它。我們始終非常注重確保我們擁有具有競爭力的價格定位以及最重要的強大的價值。

So you know and because we shared before, 40% of our customers don't even cross shoppers with anyone. So the strength of the brand, the continued investments, obviously with Heidi coming on board in the brand are paying off, because you obviously see that people value the brand just beyond price. But it's a key advantage for us, we'll continue to review over time. We've baked in what we know about tariffs at the moment and that's just one of the levers that we can take, and we're very happy with the great vendor partnerships.

所以你知道，正如我們之前分享的那樣，40% 的顧客甚至不會與任何人交叉購物。因此，隨著海蒂的加入，品牌的實力和持續的投資顯然正在獲得回報，因為你顯然看到人們對品牌的評價不僅僅是價格。但這對我們來說是一個關鍵優勢，我們會持續審查。我們已經掌握了目前所了解的關稅，這只是我們可以採取的手段之一，我們對與供應商的良好合作關係感到非常滿意。

I think the last piece, as you know, our structurally higher gross margins than many of our competitors means that the effective price increase that we need to take is relatively smaller to them, so I'm very grateful our teams surgically review this all the time. As you know, we don't take MSRP price increases very often. They're very strategic to us, so more to come, but we feel confident in being able to use that lever as needed.

我認為最後一點，正如你所知，我們的結構性毛利率高於許多競爭對手，這意味著我們需要承受的有效價格上漲幅度相對較小，所以我非常感謝我們的團隊一直在仔細審查這一點。如您所知，我們很少提高製造商建議零售價。它們對我們來說非常具有戰略意義，因此未來還會有更多，但我們有信心能夠在需要時使用這個槓桿。

(inaudible), Craig Allen.

（聽不清楚），克雷格·艾倫。

Great, thanks for taking my questions. So first one on me, just on EverCouch, so you're turning on the marketing engine, you just expand a bit on what you expect that to look like? Should we expect pretty strong marketing investment behind this launch sort of out of the gate, or would those be a bit more gradual over time? And then I think you mentioned you plan to expand EverCouch distribution to 100 showrooms in the coming months, correct me if I'm wrong there, but then just kind of help us understand how you're thinking about further distribution gains after that 100. Thank you.

太好了，謝謝你回答我的問題。所以首先我要問的是 EverCouch，所以你們正在啟動行銷引擎，你們能稍微擴展一下你們期望它是什麼樣子嗎？我們是否應該期待這次發表會一開始就獲得相當強大的行銷投資，還是會隨著時間的推移逐漸增加？然後我想您提到您計劃在未來幾個月內將 EverCouch 分銷擴展到 100 個展廳，如果我錯了請糾正我，但請幫助我們了解您如何考慮在這 100 個展廳之後進一步擴大分銷收益。謝謝。

Yes, thank you for the question. So yes, I think, first for us, we shared -- we're in 27 showrooms at the moment, and a big part of that was really making sure we really take the learnings around the demo experience. We really perfect that, because Shawn always shares, we want and intend to sell this product for many years to come. So I think that first step is very important to us. And you're right, later in the summer, we'll expand out to, a full 100 showrooms and then the teams have plans kind of beyond that. And I think I feel very good on that. Obviously, we have it nationally available on the website.

是的，謝謝你的提問。所以是的，我認為，首先對我們來說，我們分享了——我們目前在 27 個展廳，其中很大一部分是確保我們真正吸取演示體驗的經驗教訓。我們真的很完美，因為 Shawn 總是分享，我們希望並且打算在未來很多年內銷售該產品。所以我認為第一步對我們來說非常重要。你說得對，今年夏天晚些時候，我們將擴展到 100 個展廳，然後團隊還會制定超出這個範圍的計劃。我認為我對此感覺非常好。顯然，我們的網站上有全國性的版本。

And as I had shared earlier, we've reconfigured and redesigned the website both in terms of homepage, as well as all the navigation, and seeing great results from that. Then in terms of from a marketing engine point of view, we will start throttling that up later in the summer through to the back end of the year and we will build that over time. And we have the teams with a great campaign launch as well as many other levers that we'll take within the marketing engine.

正如我之前所分享的，我們重新配置和設計了網站的主頁以及所有導航，並看到了很好的結果。然後從行銷引擎的角度來看，我們將在夏季晚些時候到年底開始限制這一進程，並隨著時間的推移逐步建立這一進程。我們擁有一支能夠出色地進行行銷活動的團隊，以及在行銷引擎中可以採取的許多其他手段。

So when we next talk in September for the next round of earnings, obviously, we'll have more news to share with you. I think the key thing as Shawn shared, is the initial feedback is people love the product, they love the style, they love the comfort. Our teams are super excited which they often are the greatest level of feedback for us around what customers want and what they like. So you know, look forward to sharing more with you.

因此，當我們下次在九月談論下一輪收益時，顯然我們會有更多消息與大家分享。我認為關鍵在於，正如 Shawn 所分享的，最初的回饋是人們喜歡該產品，喜歡其風格，喜歡其舒適度。我們的團隊非常興奮，他們經常為我們提供關於客戶想要什麼和喜歡什麼的最高級別的回饋。所以你知道，期待與你分享更多。

Alright, great. That's very helpful. And then just one more for me, probably for Keith here. Just wondering if you can help us understand a bit more how you see any changes in working capital throughout the rest of the year? Obviously, you're kind of a use of cash this quarter. You gave us some inventory kind of highlights, I think if you just kind of walk through a bit more of analysis on expected changes in working capital for the rest of the year, that'd be very helpful. Thank you.

好的，太好了。這非常有幫助。然後還有一個適合我，可能適合 Keith 的。只是想知道您是否可以幫助我們進一步了解您如何看待今年剩餘時間營運資金的變化？顯然，本季你使用了現金。您給了我們一些庫存方面的亮點，我認為如果您能對今年剩餘時間營運資本的預期變化進行更多的分析，那將會非常有幫助。謝謝。

Yeah, sure thing. So it's actually pretty straightforward through the rest of the year given we had the big build in the fourth quarter on inventory and given the great payment terms we have with most of our vendors, the payment for that inventory build occurred in the first quarter. So that's -- you saw that flow through dramatically reduced sequentially accounts payable include expenses and lower cash. So that puts us in a good position. Even with some build into the second half for EverCouch, we should probably end up at slightly lower, again, take all this, as estimates, but end up with slightly lower inventory than right now by the end of the year, even with the addition of the EverCouch.

是的，當然可以。因此，考慮到我們第四季度庫存的大幅增加，以及我們與大多數供應商達成的優惠付款條件，今年剩餘時間的情況實際上相當簡單，庫存增加的付款在第一季就已發生。所以，您會看到，流經的應付帳款（包括費用）和現金都大幅減少。這讓我們處於有利地位。即使 EverCouch 在下半年有所增加，我們最終的結果可能仍會略低一些，再次強調，將所有這些都作為估計值，但到年底，即使增加了 EverCouch，庫存最終也會比現在略低。

So aside from that, CapEx, we're still sitting around 25 million, for the full year is our current estimate. And -- but everything else should be relatively straightforward. We're not a heavy working capital business given we don't really have accounts receivable our customers pay really quickly. So you know, it should be relatively simple other than that, that nuance with the inventory we just discussed.

因此，除此之外，資本支出，我們仍然有大約 2500 萬，這是我們目前對全年的估計。而且——但其他一切都應該相對簡單。由於我們沒有應收帳款，而且客戶付款非常快，所以我們並不是一個營運資本密集型企業。所以你知道，除了我們剛才討論的庫存的細微差別之外，它應該相對簡單。

Matt Koranda, Roth Capital.

羅斯資本的馬特‧科蘭達 (Matt Koranda)。

Hey, guys. Good morning. Just wanted to make sure I understood on the gross margin commentary that you gave. If we selectively took price last month, but we, and we likely have non-tariff impacted inventory we're selling in the second quarter, I guess, what in particular is the headwind to the gross margin? Is it a product mix shift or promotional headwind that we're factoring in?

嘿，大家好。早安.只是想確保我理解您給出的毛利率評論。如果我們上個月有選擇地計算價格，但我們在第二季銷售的庫存可能不受關稅影響，我想，毛利率面臨的阻力具體是什麼？我們考慮的是產品組合變化還是促銷阻力？

And then just for the rest of the year, Keith, like maybe for the implied improvement, I guess we'll be probably selling some tariff-impacted product, but there's some pricing benefit, but maybe you can help us understand a little bit more about the positive drivers there in the second half.

然後就今年剩餘的時間而言，基思，也許是為了隱含的改善，我想我們可能會銷售一些受關稅影響的產品，但也有一些定價優勢，但也許你可以幫助我們更多地了解下半年的積極驅動因素。

Yeah, so a couple of things. So I mean, it really is just nuance around what I talked about before. So we have more tariff-related costs in the inventory in the quarter, in 2Q, than we will later in the year because there's more China, right? So China has even before with the inventory they brought in ahead of all the April 2 stuff had tariff on it, whereas a bunch of the other countries did not. So more reliance on China is number one.

是的，有幾件事。所以我的意思是，這實際上只是我之前談到的細微差別。因此，我們第二季庫存中的關稅相關成本將比今年稍後更多，因為中國業務更多，對嗎？因此，中國甚至在 4 月 2 日之前就對進口的庫存徵收了關稅，而其他許多國家卻沒有。因此，更依賴中國是首要的。

Number two, we're not going to get full benefit of vendor concessions in the second quarter, which ramps through the year. Number three, the price increase was put in place during the quarter, but that doesn't mean that's the only price increase we'll take this year. It's just a price increase taken this year. There could be more, and you could see how that could flow through.

第二，我們不會在第二季充分享受供應商的優惠，而第二季的優惠將持續到全年。第三，價格上漲是在本季實施的，但這並不意味著這是我們今年唯一的價格上漲。這只是今年的漲價。可能還會有更多，而且你可以看到它們是如何流動的。

Another one is with the launch of EverCouch, this is a brand-new product platform for us and there are different approaches we could take to headline discounting on it. Especially on something brand new like this with early adoption excitement that exists out there. Our initial goal would be to have less heavy promotional cadence on every couch. So as that ramps up, there's an effect there.

另一個是 EverCouch 的推出，這對我們來說是一個全新的產品平台，我們可以採取不同的方法來在其上進行折扣。尤其是對於像這樣的全新事物，人們早期採用它時會感到興奮。我們的最初目標是減少每張沙發上的促銷節奏。因此，隨著這種情況的增加，就會產生影響。

So there are quite a few things that drive this, and we're happy to get into more of the specifics offline, but 2Q sort of is the perfect storm of more of the cost with less of the benefits. I didn't mention general efficiency efforts and other things like that that we're working on as well. The benefits from things like, for example, Mary mentioned before, outbound logistics and warehousing efforts that we have that are kicking in as the year progresses, all of those different factors just kind of work around this idea of a perfect storm in 2Q.

因此，有許多因素推動了這一進程，我們很高興能夠在線下討論更多細節，但第二季度是成本增加而收益減少的完美風暴。我沒有提到我們正在努力提高整體效率以及其他類似的事情。例如，瑪麗之前提到的，隨著時間的推移，我們的出站物流和倉儲工作正在發揮作用，所有這些不同的因素都圍繞著第二季完美風暴的想法。

Okay, very clear. I appreciate that, Keith. And then, maybe just curious of Mary if you could share anything on Memorial Day performance as a barometer for the second quarter demand trend? And then maybe also just curious about sort of how the pricing actions that you guys have put in place thus far have been received and how that might inform sort of future pricing action.

好的，非常清楚。我很感激，基斯。然後，也許只是對瑪麗感到好奇，您是否可以分享一些關於陣亡將士紀念日的表現作為第二季度需求趨勢的晴雨表？然後也許只是好奇到目前為止你們所採取的定價行動的反應如何，以及這將如何影響未來的定價行動。

Yeah, no, thank you, Matt. Yeah, I think, I mean, obviously, as Keith shared, our guidance for quarter two points to our underlying performance. Where we're growing, gaining market share and this obviously factors in Memorial Day performance, which we were happy with. This obviously is building on quarter one where we're gaining share, so we feel good.

是的，不，謝謝你，馬特。是的，我認為，我的意思是，顯然，正如 Keith 所分享的，我們對本季業績的預期是 2 個百分點。我們正在成長，不斷獲得市場份額，這顯然是陣亡將士紀念日表現的一個因素，我們對此感到滿意。這顯然是在第一季的基礎上取得的，在這一季度，我們的市場份額正在增加，因此我們感覺很好。

Obviously, we're only partway through the quarter. We have our next big temple moment ahead with us with the July 4 event. But as we continue to see, we see people excited by innovation, whether it be PillowSac action chair, the recliner. And all the other things that we have shared. So very similar dynamics, still choppy as Shawn has shared in some of the category dynamics but feel good on Memorial Day. And I appreciate the teams are really sharpening the communications, testing even more around kind of different promo tactics, different communication tactics. So more to come, obviously, we need to get through the July 4 event and overall, the guidance indicates growth for the quarter, which we feel good about.

顯然，我們才剛度過本季的一半。我們的下一個重要寺廟時刻是 7 月 4 日的活動。但正如我們不斷看到的，我們看到人們對創新感到興奮，無論是 PillowSac 活動椅還是躺椅。以及我們分享的所有其他事物。因此，動態非常相似，仍然不穩定，正如 Shawn 在一些類別動態中所分享的，但在陣亡將士紀念日感覺良好。我很欣賞團隊確實在加強溝通，並在不同的促銷策略和不同的溝通策略方面進行更多測試。因此，顯然，我們需要度過 7 月 4 日的活動，總體而言，指導顯示本季將實現成長，我們對此感到滿意。

I think then in terms of your question on the pricing actions, we took that surgically in the assortment where we really identified where there was opportunities, looking both obviously in the benchmarking. Competitively, we're always very focused on having a very strong value proposition. So the teams did a great job, a great communication out to the field teams, and since then feel really good in terms of on the execution for that, and it just goes back to the strength of the brand.

我認為，就您關於定價行動的問題而言，我們在產品組合中採取了精準的措施，真正確定了哪裡有機會，顯然在基準測試中也看到了機會。在競爭方面，我們始終非常注重擁有非常強大的價值主張。因此，團隊做得很好，與現場團隊進行了很好的溝通，從那時起，在執行方面感覺非常好，這又回到了品牌的實力上。

As I shared earlier, so many customers just, they come to us because their friends have told them this is just a great product, or they've tried it out at their friend's home. So the strength of the brand obviously really helps us ensure that we get the right balance of the value proposition. So more to come as we go through the year. Obviously, the latest news on China tariffs yesterday kind of baked into our guidance, so I'm hopeful that we can see some relief at some point later this year maybe too.

正如我之前所分享的，很多顧客來找我們只是因為他們的朋友告訴他們這是一個很棒的產品，或者他們在朋友家裡嘗試過。因此，品牌的力量顯然確實幫助我們確保獲得價值主張的正確平衡。隨著時間的流逝，我們將會迎來更多。顯然，昨天有關中國關稅的最新消息已經融入了我們的預期，所以我希望我們能在今年稍後的某個時候看到一些緩解。

Thomas Forte, Maxim Group.

托馬斯·福特（Thomas Forte），馬克西姆集團（Maxim Group）。

Great, thanks. Shawn, Mary, Keith, congrats on the quarter. So I'm going to ask both my questions at once since the call is getting long here. So can you talk about new products bringing new customers to the brand, the PillowSac, accent chair, recliner, and while very early, the EverCouch? And then my second question, when I think about Best Buy, it came around the initial launch of StealthTech. So Shawn, what gives you confidence in your ability to sell consumer electronics type products in your physical showrooms and Costco? Thank you.

太好了，謝謝。肖恩、瑪麗、基思，恭喜本季取得佳績。由於通話時間已經很長，所以我將同時提出這兩個問題。那麼，您能談談為該品牌帶來新客戶的新產品嗎？ PillowSac、強調椅、躺椅，以及仍處於起步階段的 EverCouch？然後我的第二個問題是，當我想到百思買時，它出現在 StealthTech 的首次推出時。那麼肖恩，是什麼讓您對自己在實體展廳和好市多銷售消費性電子產品的能力充滿信心？謝謝。

Yeah. Sorry, the first half of the question, Tom, I broke up.

是的。抱歉，問題的前半部分，湯姆，我分手了。

For the ability of the new products to bring new customers to the brand, PillowSac, accent chair, the recliner, and well, very early, the EverCouch.

新產品能為品牌帶來新客戶，包括 PillowSac、強調椅、躺椅，以及早期的 EverCouch。

Yeah, thank you. Yeah, this is the -- obviously, the point of these launches and our strategy and product to begin more broadly is to bring new customers to the brand and especially be able to convert more effectively. So if we back up and look at where Lovesac has had success, Lovesac had Sactional for a long time, and had some success and grew before we turned on the marketing machine that you see today. And one of the most important pieces of that marketing machine for us was simply mass advertising, whether it be TV, especially, obviously, now that's transitioned to over the top and digital, social, et cetera. So we're reaching, really the entire country.

是的，謝謝。是的，顯然，這些發布以及我們的策略和產品的目的更廣泛地是為了為品牌帶來新客戶，特別是能夠更有效地轉換。因此，如果我們回顧一下 Lovesac 的成功之處，就會發現 Lovesac 已經與 Sactional 合作了很長時間，在我們啟動今天所看到的行銷機器之前，它取得了一些成功，並且不斷發展。對我們來說，行銷機器最重要的部分之一就是大眾廣告，無論是電視廣告，尤其是現在顯然已經轉型為網路廣告、數位廣告、社群廣告等等。所以，我們的覆蓋範圍其實是整個國家。

We have a focus on our core demographic, typically, more affluent households between 35 and 45, experiencing household formation that sort of thing. But as strong as Sactional are, as what we think the best-selling sectional in the United States of America, there are many reasons that people choose not to buy. And these new products mitigate -- have been developed to mitigate those reasons. And we know specifically what those are through our ongoing research with our customers. And so, taking them one at a time, let's work backward, the EverCouch. It has a markedly different profile and style and scale to Sactional.

我們關注的核心人群是年齡在 35 歲至 45 歲之間的較為富裕的家庭，他們正在經歷家庭組成之類的過程。儘管 Sactional 很強大，我們認為它是美國最暢銷的組合沙發，但人們選擇不購買的原因卻有很多。這些新產品的開發就是為了緩解這些原因。透過與客戶持續進行的研究，我們具體了解了這些是什麼。那麼，讓我們一個一個回顧一下，EverCouch。它的外形、風格和規模與 Sactional 有明顯不同。

In fact, we're very heartened by how it's performing in more urban markets where spaces are just smaller. And it still has the advantages of getting up elevators and through staircases and shipping directly to the home and that sort of thing. And so, that's a perfect example of how we're able to not just reach new customers but importantly convert new customers more effectively that were turning us down before.

事實上，我們對它在空間較小的城市市場中的表現感到非常高興。而且它仍然具有乘電梯、走樓梯以及直接運送到家等優勢。所以，這是一個完美的例子，說明我們不僅能夠接觸到新客戶，更重要的是能夠更有效地轉換以前拒絕我們的新客戶。

At the same time, it's a photographic game. It's an image-driven game today, especially on social media. And the EverCouch provides us kind of a whole new profile in terms of the way we're shooting it, photography wise, style-wise, the types of influencers we'll use to reach people and in that way, again, reach more people, reach new people, people that are suited and for that product, especially based on lots of different points of data.

同時，這也是一款攝影遊戲。如今，這是一個由圖像驅動的遊戲，尤其是在社交媒體上。EverCouch 為我們提供了全新的形象，包括我們的拍攝方式、攝影風格、我們用來接觸人群的影響者類型，透過這種方式，我們可以接觸到更多的人，接觸到新的人，接觸到適合該產品的人，尤其是基於大量不同的數據點。

The recliner, again, this has been a quarter of the Sactional category motion, and we've just been locked out of it. People would walk into our showroom and say, do you have a recliner? We've heard the Lovesac brand, we see your ads really cool. Do you have a recliner? Our answer is no, and we're off their shopping list. That's now changed, and it's become a very important part of the mix. Obviously, it's another really stealthy invention for us. It looks exactly like a typical Lovesac seat that people might have seen or owned for a long time, but all of a sudden it comes to life and moves, and that makes for great imagery, makes for great motion imagery, performs very well on social media, and helps us reach new people and open up the quarter of that category that we were not participating in before.

再說一次，躺椅是 Sactional 類別運動的四分之一，而我們只是被排除在外。人們走進我們的陳列室並問，你們有躺椅嗎？我們聽說過 Lovesac 這個品牌，我們認為您的廣告真的很酷。你有躺椅嗎？我們的答案是否定的，我們不在他們的購物清單上。現在情況已經改變，它已經成為組合中非常重要的一部分。顯然，這對我們來說是另一個真正隱密的發明。它看起來與人們可能已經見過或擁有很久的典型 Lovesac 座椅一模一樣，但突然間它就活了過來並移動，這產生了出色的圖像，產生了出色的動態圖像，在社交媒體上表現非常出色，並幫助我們接觸到新人並開拓了我們之前未曾參與過的該類別的四分之一。

So we're -- this is the reason why Lovesac's growing. At the end of the day, this category is -- has been (inaudible) now for three years straight. And while it's not our banner growth years, itt would be a really difficult path to growth were it not for these innovations. And then the PillowSac chair frame has just been crushing it on social media and it's really just helped us reach a lot of people through its slightly viral launch onto the scene, and it's propelled PillowSac to be our best-selling sack. So it's a really exciting product as well.

所以——這就是 Lovesac 不斷發展的原因。歸根究底，這個類別已經連續三年處於（聽不清楚）狀態。雖然這不是我們的標誌性增長年，但如果沒有這些創新，我們的成長之路將會非常艱難。然後，PillowSac 椅子框架在社交媒體上大受歡迎，它透過病毒式傳播的方式幫助我們接觸到了許多人，並使 PillowSac 成為我們最暢銷的袋子。所以這也是一個非常令人興奮的產品。

Meanwhile, I'll wrap up with StealthTech. You have to -- what gives us confidence to sell these to our showrooms. It is amazing to us because it was controversial to print Lovesac on the side of a soundbar. And you're not seeing, I don't know, Samsung, Sony, you're seeing the name Lovesac is the prominent name on the side of that soundbar for StealthTech, which is the only piece of it you see, because the rest of it is hidden away, right inside of the inside of our sectional, et cetera.

同時，我將結束 StealthTech 的討論。你必須－是什麼讓我們有信心將這些產品賣給我們的展間。這對我們來說非常驚奇，因為在條形音箱的側面印上 Lovesac 字樣曾經引起爭議。而且您沒有看到，我不知道，三星，索尼，您看到的 Lovesac 這個名字是 StealthTech 條形音箱側面的顯眼名稱，這是您唯一看到的部分，因為其餘部分都隱藏起來了，就在我們的組合櫃內部，等等。

And we see no resistance when we do the research, when we talk to customers, and we talk anecdotally to our showroom managers who are interfacing with people day to day. We are very confident in our ability to become a major player in home audio and beyond home audio, and in technology in general. We have StealthTech innovations coming that are not home audio and we'll, again, hide technology away in the space that we provide on around underneath your couch and other products. And we see no resistance in the showrooms -- in our own showrooms.

當我們進行研究、與客戶交談以及與每天與人們打交道的展廳經理進行軼事交流時，我們沒有看到任何阻力。我們非常有信心，我們有能力成為家庭音響、家庭音響以外領域以及整個科技領域的主要參與者。我們即將推出 StealthTech 創新產品，它們不屬於家庭音響，而且我們會將科技隱藏在我們提供的空間中，例如沙發和其他產品下方。在我們自己的展廳裡，我們沒有看到任何阻力。

And so, while Best Buy was extremely useful in helping us establish that credibility, I think based on, to loop it all the way back, our mass advertising, TV ads that have been reaching people now for years, just the idea of surround sound built into the couch underneath the film, underneath the fabric to provide strong audio. Of course, people are best to go experience it for themselves because it's so good, so much better than you think it could be. And that's where we really see a future for our brand and technology. Why? Because there's no one in the mall anymore doing it. Period.

因此，雖然百思買在幫助我們建立信譽方面非常有用，但我認為，基於我們的大眾廣告，多年來一直接觸人們的電視廣告，僅僅是將環繞聲內置於沙發下方的薄膜下、織物下方以提供強大的音頻的想法。當然，人們最好親自去體驗一下，因為它太好了，比你想像的要好得多。這就是我們真正看到我們的品牌和技術的未來的地方。為什麼？因為商場裡已經沒有人這麼做了。時期。

And the only few places that you can go to experience anything anymore are having their own changes in that industry and in customer behavior and whatnot. So Lovesac is going to be the place to experience technology firsthand, home audio firsthand and, of course, in ways that are completely unique to Lovesac and it's going to be a mainstay of our brand. We're very confident. We're really excited about it. You're going to see a lot of innovation in StealthTech over these next couple of years.

而現在，你能去體驗一切的僅有的幾個地方都在經歷著該行業、客戶行為等方面的變化。因此，Lovesac 將成為親身體驗科技、親身體驗家庭音響的地方，當然，體驗方式也是 Lovesac 獨有的，它將成為我們品牌的支柱。我們非常有信心。我們對此感到非常興奮。在接下來的幾年裡，你會看到 StealthTech 領域出現大量創新。

Thank you. At this time, we've reached the end of our question-and-answer session. I'll hand the floor back to management for closing remarks.

謝謝。至此，我們的問答環節已經結束。我將把發言權交還給管理階層，請他們做最後發言。

Thanks so much for joining our first quarter fiscal '26 call. Thank you so much to all of our investors who support this company and, of course, to our #Lovesac family, who are the reason we wake up every day and make it great.

非常感謝您參加我們的 26 財年第一季電話會議。非常感謝所有支持這家公司的投資者，當然還有我們的#Lovesac 大家庭，他們是我們每天醒來並讓生活變得美好的原因。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Have a wonderful day.

今天的會議到此結束。現在您可以斷開線路。感謝您的參與。祝您有美好的一天。