Revenues jump for Stamford furniture maker Lovesac in Q2
STAMFORD — Furniture seller Lovesac overcame the temporary shutdown of its showrooms with surging e-commerce in the past few months, according to its latest quarterly earnings report released this week.
In the quarter ended Aug. 2, Stamford-based Lovesac’s sales surged 29 percent year over year, to about $62 million.
The rise was driven by a 387 percent jump in internet sales, which more than compensated for a 59 percent drop in showroom sales resulting from temporary store closings in the spring. Later in the quarter, Lovesac started to reopen its showrooms, with appointment visits and/or virtual demonstrations.
“I am very pleased with our team’s resiliency and ability to adapt as we continued to serve our customers in a rapidly changing operating environment,” Lovesac founder and CEO Shawn Nelson said in a statement. “Our operational pivot to focus on digital channels while showrooms were closed or operating in a limited fashion, as well as our efficient marketing efforts, were very effective.”
In the same period, the firm recorded a loss of $1.1 million, compared with a deficit of $4.8 million a year ago.
At the end of the past quarter, Lovesac operated 97 showrooms, including stores in Westport, Greenwich, Danbury and West Hartford. All of the Connecticut locations are open for appointments and walk-in visits.
In April, Lovesac announced that it was responding to the coronavirus pandemic with major cost-cutting.
The changes included a reduction in workforce of about 445 part-time employees, who represented 57 percent of the company’s total headcount. At that point, about 330 employees remained with the company, with less than half “located in the greater Stamford area,” Lovesac officials said.
“The environment remains uncertain and we will continue to be disciplined and flexible as we navigate a dynamic marketplace while remaining focused on advancing the initiatives that underpin our long-term growth strategy,” Nelson said.
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