Lovesac Co at Canaccord Genuity eCommerce Sustainable Advantage Virtual Forum Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : So starting suddenly with a high-level question. So demand for the furniture category has been really strong over the past two years on the heels of COVID, and also as low interest rates have contributed to a very strong housing market. Where do you think we are in the cycle as it relates to Lovesac's business?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Yeah, that makes sense. And Shawn, if you evaluate yourselves, you've demonstrated strengthening growth through the pandemic despite normalizing consumer behavior and all the supply chain disruptions. Can you talk about how your maybe unique product design and omnichannel strategy is enabling the company to take share in this challenging environment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 24, 2022 / 12:30PM, LOVE.OQ - Lovesac Co at Canaccord Genuity eCommerce Sustainable Advantage Virtual Forum

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Yeah. You certainly implemented a lot of new techniques that have worked in over the past year -- past bunch of years. But Shawn, we've asked you this question over the years, but what do you view as the optimal [launch showroom] footprint for Lovesac? And did COVID change your brick and mortar strategy out?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Makes sense. So let's talk about one of your exciting recent product launches, StealthTech. Maybe for those in the audience who are less familiar with the product, can you refresh us on what the offering is and how it expands your TAM?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Yeah. I've tried it and the sound is pretty incredible, so. Shawn, what's the company's strategy for promoting this new product? And what have you shared about demand trends since the launch in October?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Makes sense. Maybe switching gears here, Shawn. The importance of supply chain has been magnified over recent years, starting with the Chinese tariffs and then COVID. Can you maybe give us an update on Lovesac's supply chain diversification efforts, and how that sort of helped you navigate these challenges?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Makes sense. And I think we have just a couple of minutes left here, but I want to ask you about your brand. So in the past, you talked about how building brand awareness remains a significant opportunity for you. Can you maybe discuss how you view your brand today, and how you're thinking about investing in brands going forward?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Yeah, that makes sense. And I think we have about 30 seconds left, but I do want to ask you one last question. And so last year at this event, we asked all our participants for one prediction about the e-commerce space. And your response was that many brands will embrace omnichannel as a strategy to help build their brand and make it easier for customers to access their products. So I guess, how do you feel about that prediction today a year later? And then what would be your one prediction about the e-commerce space that you think may surprise people over the next one or two years?

Question: Maria Ripps - Canaccord Genuity LLC - Analyst : Yeah, yeah. Well, those are great insights. We'll leave it there. Shawn, thank you so much for joining us. It's great to see you.