The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Maria Ripps - Canaccord Genuity - Analyst
: Great, good morning, and thanks for taking my questions. First, I just wanted to ask about your Q4 outlook. So if we look at your sort of updated
guidance versus prior implied outlook, can you maybe share a little bit more color on how much of that sort of delta is sort of attributable to the
changes in factors that you talked about last quarter? Like catching up on delayed shipments, new products and just broader category improvement?
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DECEMBER 12, 2024 / 1:30PM, LOVE.OQ - Q3 2025 Lovesac Co Earnings Call
Question: Maria Ripps - Canaccord Genuity - Analyst
: Got it. And then secondly, can you maybe talk about how your recent product launches in the pipeline for next year sort of inform your approach
to building brand awareness and sort of broader marketing strategy for next year?
Question: Maria Ripps - Canaccord Genuity - Analyst
: Great. Thank you so much for the color and looking forward to Investor Day next week.
Question: Thomas Forte - Maxim Group LLC - Analyst
: Great, thanks. So first, congrats on the recliner soft launch. I have one question and one follow-up. So Shawn and team, how should we think about
your promotional strategy and what is a highly promotional environment for the category including your willingness to lose sales to protect
profitability?
Question: Thomas Forte - Maxim Group LLC - Analyst
: Wonderful. And then for my follow-up, how does the gross margin of the recliner compare relative to your other products?
Question: Thomas Forte - Maxim Group LLC - Analyst
: Thanks for taking my questions.
Question: Matthew Koranda - ROTH Capital Partners - Analyst
: Hey, guys, good morning. Just in the interest of focusing on near-term stuff. Wondering if you could unpack how the fourth quarter is tracking
relative to the down 7% guide? I guess, what did you see specifically during the Black Friday, Cyber Monday period? Was it sort of negative high-single
digits in line with that guide?
And then maybe Keith, could you share the underlying omni comp assumption that's embedded in the fourth quarter guidance? Just trying to get
a sense for apples to apples comparison because we had that extra week last year.
Question: Matthew Koranda - ROTH Capital Partners - Analyst
: Okay, got it. Wondering on the -- it sounds like we have like a near-term conversion challenge just given the double-digit growth and quotes that
you guys have mentioned several times. Maybe can you put a finer point on just the initiatives that we have in place or the tools at our disposal?
You start boosting conversion within this quarter. Curious on that front. And then maybe just anything on the recliner initial reads that you have
in terms of attach rates to the sactionals platform, that'd be very helpful.
Question: Matthew Koranda - ROTH Capital Partners - Analyst
: Okay, guys. Thank you for all the detail and I'll leave it there and look forward to next week.
Question: Alex Fuhrman - Craig-Hallum - Analyst
: Hey, guys, thanks very much for taking my question. I'd love to ask about the transition to the new media-buying agency. I think I remember earlier
this year, there were some headwinds just during the very early days of the transition. Now that you've had more time and some experience during
the peak holiday season, can you talk about how that transition has gone? And if you think that was a good move?
Question: Alex Fuhrman - Craig-Hallum - Analyst
: Okay, thanks very much, Mary. Appreciate that color.
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