Page 1

September 9 , 2021 The Lovesac Company Reports Second Quarter Fiscal 2022 Financial Results Net Sales Growth of 65.4 % Comparable Sales Growth of 39.5 % Net Income ( Loss ) Improved to $ 8.4 million from $ ( 1.1 ) million in the Prior Year Period Second Quarter Adjusted EBITDA¹ of $ 12.4 million STAMFORD , Conn . , Sept. 09 , 2021 ( GLOBE NEWSWIRE ) -- The Lovesac Company ( Nasdaq : LOVE ) ( " Lovesac " or the " Company " ) today announced financial results for the second quarter of fiscal 2022 , which ended August 1 , 2021 . LOVESAC Designed for Life Furniture Co. Shawn Nelson , Chief Executive Officer , stated , " Across nearly every key operating metric , Lovesac's quarterly results affirm the fundamental efficacy of our disruptive home furnishings model , the competitive advantages of our diversified supply chain and resulting strong in - stock positions , along with growing brand awareness . To that end , our very strong second quarter performance marks 14 consecutive quarters of 25 % + sales growth with profitability nicely ahead of expectations driven primarily by lower promotions and fixed cost leverage on this quarter's 65 % sales increase . " Mr. Nelson continued , " The third quarter is off to a strong start and as we look to the second half of the year , we are confident in our ability to execute on our key strategic growth priorities and navigate the tight supply chain environment . With our strong positioning and unique competitive advantages , including our Circle - to - Consumer philosophy that will help us build long - term relationships with our most valued customers , we are very optimistic about the significant growth opportunities that lie ahead for Lovesac and our ability to drive value for all stakeholders . " Key Measures for the Second Quarter and First Half of Fiscal 2022 Ending August 1 , 2021 : ( Dollars in millions , except per share amounts ) Net Sales Gross Profit Gross Margin Total Operating Expense SG & A SG & A as % of Net Sales Quarter Quarter Ended Ended August 1 , August 2 , 2021 2020 $ 102.4 $ 61.9 $ 59.0 $ 31.1 57.6 % 50.1 % $ 32.1 $ 23.4 37.7 % $ 50.0 $ 35.4 34.5 % First Half First Half Ended Ended August 1 , August 2 , 2021 2020 $ 116.3 $ 58.3 50.2 % $ 67.8 $ 49.2 42.3 % ( 665 ) bps % Inc ( Dec ) 65.4 % $ 185.4 90.1 % $ 105.1 749 bps 56.7 % 55.9 % $ 93.8 51.3 % $ 66.1 ( 321 ) bps 35.7 % % Inc ( Dec ) 59.4 % 80.2 % 655 bps 38.5 % 34.3 %