LOVESAC CO (NASDAQ:LOVE) Q2 2021 Earnings Conference Call - Final Transcript

Sep 09, 2020 • 08:30 am ET


LOVESAC CO (NASDAQ:LOVE) Q2 2021 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Lovesac Second Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Ms. Rachel Schacter of ICR. Thank you. Please go ahead.

Rachel Schacter

Thank you. Good morning, everyone. With me on the call is, Shawn Nelson, Chief Executive Officer; Jack Krause, 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. 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 measures has been provided as supplemental financial information in our press release.

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

Shawn Nelson

Good morning everyone and thank you for joining us today. I will begin my remarks by providing an overview of our continued response to a dynamic operating environment, followed by a summary of our performance for the second quarter. Then, Jack Krause, our President and COO, will discuss our fiscal second quarter operational performance and progress being made on our key initiatives against the current backdrop. Donna Dellomo, our CFO, will then review our financial results and a few other items relating to our fiscal 2021 outlook.

While the operating environment in the second quarter continued to be challenging, I'm very pleased with our team's resiliency and ability to adapt as we continue to serve our customers. During the quarter, we began reopening showrooms through a measured and phased approach with our e-commerce platform continuing to serve as an important first step in the customers transaction path and in many cases, serving as the platform for their Lovesac purchase experience from start to finish.

We ended the quarter with all showrooms open in some format, many still virtual or by appointment only, as we continue to prioritize the health and safety of our associates and customers, and utilize our full-time associates as trade area representatives, by also leveraging our enhanced technology capabilities.

In terms of our shop-in-shops with Macy's and Best Buy, five of our seven were open as of the end of the quarter and the remaining