Cover
Cover - shares | 6 Months Ended | |
Aug. 04, 2024 | Sep. 09, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 04, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38555 | |
Entity Registrant Name | THE LOVESAC COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0514958 | |
Entity Address, Address Line One | Two Landmark Square | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901 | |
City Area Code | 888 | |
Local Phone Number | 636-1223 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | LOVE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,558,674 | |
Amendment Flag | false | |
Entity Central Index Key | 0001701758 | |
Current Fiscal Year End Date | --02-02 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q2 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Aug. 04, 2024 | Feb. 04, 2024 |
Current Assets | ||
Cash and cash equivalents | $ 72,126 | $ 87,036 |
Trade accounts receivable, net | 14,787 | 13,463 |
Merchandise inventories, net | 88,287 | 98,440 |
Prepaid expenses | 15,281 | 11,664 |
Other current assets | 3,677 | 3,845 |
Total Current Assets | 194,158 | 214,448 |
Property and equipment, net | 77,012 | 70,807 |
Operating lease right-of-use assets | 159,131 | 155,856 |
Goodwill | 144 | 144 |
Intangible assets, net | 1,428 | 1,457 |
Deferred tax asset | 16,885 | 10,803 |
Other assets | 32,317 | 28,665 |
Total Assets | 481,075 | 482,180 |
Current Liabilities | ||
Accounts payable | 28,524 | 28,821 |
Accrued expenses | 35,838 | 38,622 |
Payroll payable | 10,694 | 6,998 |
Customer deposits | 15,297 | 8,257 |
Current operating lease liabilities | 19,011 | 17,628 |
Sales taxes payable | 5,712 | 6,030 |
Total Current Liabilities | 115,076 | 106,356 |
Operating lease liabilities, long-term | 163,405 | 157,876 |
Income tax payable, long-term | 452 | 452 |
Line of credit | 0 | 0 |
Total Liabilities | 278,933 | 264,684 |
Commitments and Contingencies (see Note 6) | ||
Stockholders’ Equity | ||
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of August 4, 2024 and February 4, 2024. | 0 | 0 |
Common Stock $0.00001 par value, 40,000,000 shares authorized, 15,558,682 shares issued and outstanding as of August 4, 2024 and 15,489,364 shares issued and outstanding as of February 4, 2024. | 0 | 0 |
Additional paid-in capital | 186,562 | 183,095 |
Accumulated earnings | 15,580 | 34,401 |
Stockholders' Equity | 202,142 | 217,496 |
Total Liabilities and Stockholders' Equity | $ 481,075 | $ 482,180 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - $ / shares | Aug. 04, 2024 | Feb. 04, 2024 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 15,558,682 | 15,489,364 |
Common stock, shares outstanding (in shares) | 15,558,682 | 15,489,364 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 156,590 | $ 154,529 | $ 289,233 | $ 295,722 |
Cost of merchandise sold | 64,221 | 62,139 | 124,819 | 132,757 |
Gross profit | 92,369 | 92,390 | 164,414 | 162,965 |
Operating expenses: | ||||
Selling, general and administration expenses | 73,674 | 63,834 | 142,077 | 120,380 |
Advertising and marketing | 23,310 | 26,535 | 41,306 | 43,448 |
Depreciation and amortization | 3,756 | 3,014 | 7,258 | 5,836 |
Total operating expenses | 100,740 | 93,383 | 190,641 | 169,664 |
Operating loss | (8,371) | (993) | (26,227) | (6,699) |
Interest income, net | 694 | 351 | 1,438 | 692 |
Net loss before taxes | (7,677) | (642) | (24,789) | (6,007) |
Benefit from income taxes | 1,816 | 7 | 5,968 | 1,257 |
Net loss | $ (5,861) | $ (635) | $ (18,821) | $ (4,750) |
Net loss per common share: | ||||
Basic (in dollars per share) | $ (0.38) | $ (0.04) | $ (1.21) | $ (0.31) |
Diluted (in dollars per share) | $ (0.38) | $ (0.04) | $ (1.21) | $ (0.31) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 15,590,207 | 15,422,640 | 15,564,016 | 15,326,702 |
Diluted (in shares) | 15,590,207 | 15,422,640 | 15,564,016 | 15,326,702 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common | Additional Paid-in Capital | Accumulated Earnings (Deficit) |
Beginning balance (in shares) at Jan. 29, 2023 | 15,195,698 | |||
Beginning balance at Jan. 29, 2023 | $ 193,094 | $ 0 | $ 182,554 | $ 10,540 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (4,750) | (4,750) | ||
Equity-based compensation | 2,037 | 2,037 | ||
Vested restricted stock units (in shares) | 211,635 | |||
Exercise of warrants (in shares) | 74,592 | |||
Taxes paid for net share settlement of equity awards | (3,588) | (3,588) | ||
Ending balance (in shares) at Jul. 30, 2023 | 15,481,925 | |||
Ending balance at Jul. 30, 2023 | 186,793 | $ 0 | 181,003 | 5,790 |
Beginning balance (in shares) at Apr. 30, 2023 | 15,217,120 | |||
Beginning balance at Apr. 30, 2023 | 189,256 | $ 0 | 182,831 | 6,425 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (635) | (635) | ||
Equity-based compensation | 1,290 | 1,290 | ||
Vested restricted stock units (in shares) | 190,213 | |||
Exercise of warrants (in shares) | 74,592 | |||
Taxes paid for net share settlement of equity awards | (3,118) | (3,118) | ||
Ending balance (in shares) at Jul. 30, 2023 | 15,481,925 | |||
Ending balance at Jul. 30, 2023 | $ 186,793 | $ 0 | 181,003 | 5,790 |
Beginning balance (in shares) at Feb. 04, 2024 | 15,489,364 | 15,489,364 | ||
Beginning balance at Feb. 04, 2024 | $ 217,496 | $ 0 | 183,095 | 34,401 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (18,821) | (18,821) | ||
Equity-based compensation | 3,904 | 3,904 | ||
Vested restricted stock units (in shares) | 69,318 | |||
Taxes paid for net share settlement of equity awards | $ (437) | (437) | ||
Ending balance (in shares) at Aug. 04, 2024 | 15,558,682 | 15,558,682 | ||
Ending balance at Aug. 04, 2024 | $ 202,142 | $ 0 | 186,562 | 15,580 |
Beginning balance (in shares) at May. 05, 2024 | 15,525,689 | |||
Beginning balance at May. 05, 2024 | 205,332 | $ 0 | 183,891 | 21,441 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (5,861) | (5,861) | ||
Equity-based compensation | 2,752 | 2,752 | ||
Vested restricted stock units (in shares) | 32,993 | |||
Taxes paid for net share settlement of equity awards | $ (81) | (81) | ||
Ending balance (in shares) at Aug. 04, 2024 | 15,558,682 | 15,558,682 | ||
Ending balance at Aug. 04, 2024 | $ 202,142 | $ 0 | $ 186,562 | $ 15,580 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2024 | Jul. 30, 2023 | |
Cash Flows from Operating Activities | ||
Net loss | $ (18,821) | $ (4,750) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | ||
Depreciation and amortization of property and equipment | 7,038 | 5,608 |
Amortization of other intangible assets | 220 | 228 |
Amortization of deferred financing fees | 97 | 81 |
Net loss on disposal of property and equipment | 62 | 145 |
Equity based compensation | 3,904 | 2,037 |
Non-cash lease expense | 12,355 | 10,880 |
Deferred income taxes | (6,082) | (1,398) |
Change in operating assets and liabilities: | ||
Trade accounts receivable | (1,324) | 1,109 |
Merchandise inventories | 10,153 | 14,657 |
Prepaid expenses and other current assets | (3,406) | (524) |
Other assets | (3,652) | (3,518) |
Accounts payable and accrued expenses | 303 | 3,087 |
Operating lease liabilities | (8,718) | (5,817) |
Customer deposits | 7,040 | 5,519 |
Net cash (used in) provided by operating activities | (831) | 27,344 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (13,360) | (12,361) |
Payments for patents and trademarks | (142) | (160) |
Net cash used in investing activities | (13,502) | (12,521) |
Cash Flows from Financing Activities | ||
Taxes paid for net share settlement of equity awards | (437) | (3,588) |
Payment of deferred financing costs | (140) | (52) |
Net cash used in financing activities | (577) | (3,640) |
Net change in cash and cash equivalents | (14,910) | 11,183 |
Cash and cash equivalents - Beginning | 87,036 | 43,533 |
Cash and cash equivalents - Ending | 72,126 | 54,716 |
Supplemental Cash Flow Data: | ||
Cash paid for taxes | 8,354 | 1,232 |
Cash paid for interest | 61 | 66 |
Non-cash investing activities: | ||
Asset acquisitions not yet paid for at period end | $ 589 | $ 3,698 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 04, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The balance sheet of The Lovesac Company (the “Company”, “we”, “us” or “our”) as of February 4, 2024, which has been derived from our audited financial statements as of and for the 53-week year ended February 4, 2024, and the accompanying interim unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Certain information and note disclosures normally included in annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), have been condensed or omitted pursuant to those rules and regulations. The financial information presented herein, which is not necessarily indicative of results to be expected for the full current fiscal year, reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the interim unaudited condensed financial statements. Such adjustments are of a normal, recurring nature. These condensed financial statements should be read in conjunction with the Company’s financial statements filed in its Annual Report on Form 10-K for the fiscal year ended February 4, 2024. Due to the seasonality of the Company’s business, with the majority of our activity occurring in the fourth quarter of each fiscal year, the results of operations for the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023 are not necessarily indicative of results to be expected for the full fiscal year. Nature of Operations We are a technology driven company that designs, manufactures and sells unique, high quality furniture derived through our proprietary "Designed for Life" approach which results in products that are built to last a lifetime and designed to evolve as our customers’ lives do. Our current product offering is comprised of modular couches called Sactionals, premium foam beanbag chairs called Sacs, and their associated home decor accessories. Innovation is at the center of our design philosophy with all of our core products protected by a robust portfolio of utility patents. We market and sell our products through an omni-channel platform that includes direct-to-consumer touch points in the form of our own showrooms, which include our mobile concierge and kiosks, as well as through in store and online pop-up-shops and shop-in-shops with third party retailers, and online directly at www.lovesac.com. We believe that our ecommerce centric approach, coupled with our ability to deliver our large upholstered products through express couriers, is unique to the furniture industry. As of August 4, 2024, the Company operated 254 showrooms including kiosks and mobile concierges located throughout the United States. The Company was formed as a Delaware corporation on January 3, 2017, in connection with a corporate reorganization with SAC Acquisition LLC, a Delaware limited liability company, the predecessor entity to the Company. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. The Company evaluates its estimates and judgments on an ongoing basis based on historical experience, expectations of future events and various other factors we believe to be reasonable under the circumstances and revise them when necessary in the period the change is determined. Actual results may differ from the original or revised estimates. Recent Accounting Pronouncements We have considered all recent accounting pronouncements issued by the Financial Accounting Standards Board, and did not adopt any new accounting pronouncements during the thirteen weeks ended August 4, 2024 that had a material impact on our financial condition, results of operations or cash flows. There were no significant changes in recently issued accounting pronouncements pending adoption from those disclosed in our Annual Report on Form 10-K for the fiscal year ended February 4, 2024, and those not discussed in our Annual Report on Form 10-K are either not applicable or are not expected to have a material impact on our financial condition, results of operations or cash flows. Employee Benefit Plan In February 2017, the Company established The Lovesac Company 401(k) Plan (the “401(k) Plan”) with elective deferrals beginning May 1, 2017. The 401(k) Plan calls for elective deferral contributions, safe harbor matching contributions and profit sharing contributions. All associates of the Company are eligible to participate in the 401(k) Plan as of the day of the month which is coincident with or next follows the date on which they attain age 21 and complete one month of service. Participants are able to contribute up to 100% of their eligible compensation to the 401(k) Plan subject to limitations with the IRS. The Company's contributions to the 401(k) Plan were $0.6 million and $0.3 million during the thirteen weeks ended August 4, 2024 and July 30, 2023, respectively, and $1.1 million and $0.8 million for the twenty-six weeks ended August 4, 2024 and July 30, 2023, respectively. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Aug. 04, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s revenue consists substantially of product net sales. The Company reports product net sales net of discounts and recognizes them at the point in time when control transfers to the customer, which generally occurs upon our delivery to a third-party carrier. Shipping and handling charges billed to customers are included in revenue. The Company recognizes shipping and handling expense as fulfillment activities (rather than a promised good or service) when the activities are performed. Accordingly, the Company records the expenses for shipping and handling activities at the same time the Company recognizes revenue. Shipping and handling costs incurred are included in cost of merchandise sold and include inbound freight and tariff costs relative to inventory sold, warehousing, and last mile shipping to our customers. Shipping and handling costs were $25.4 million and $25.6 million during the thirteen weeks ended August 4, 2024 and July 30, 2023, respectively, and $53.8 million and $63.5 million for the twenty-six weeks ended August 4, 2024 and July 30, 2023, respectively. Estimated refunds for returns and allowances are recorded using our historical return patterns, adjusting for any changes in returns policies. The Company records estimated refunds for net sales returns on a monthly basis as a reduction of net sales and cost of sales on the condensed statements of operations and an increase in inventory and customers returns liability on the condensed balance sheets. As of August 4, 2024 and February 4, 2024, there was a returns allowance recorded on the condensed balance sheet in the amount of $4.8 million and $5.6 million, respectively, which was included in accrued expenses, and sales returns of $1.1 million and $1.3 million, respectively, included in merchandise inventories. In most cases, deposits are received before the Company transfers control, resulting in contract liabilities. These contract liabilities are reported as customer deposits on the Company’s condensed balance sheet. As of August 4, 2024 and February 4, 2024, the Company recorded customer deposit liabilities in the amount of $15.3 million and $8.3 million respectively. During the twenty-six weeks ended August 4, 2024 and July 30, 2023, the Company recognized $8.3 million and $6.8 million, respectively, related to customer deposits from fiscal 2024 and 2023, respectively. The Company offers its products through an inventory lean omni-channel platform that provides a seamless and meaningful experience to its customers in showrooms, which include mobile concierge and kiosks, and through the internet. The Other channel predominantly represents net sales through the use of online and in store pop-up-shops, shop-in-shops, and barter inventory transactions. In store pop-up-shops and shop-in-shops are staffed with associates trained to demonstrate and sell our product. The following represents net sales disaggregated by channel: Thirteen weeks ended Twenty-six weeks ended (amounts in thousands) August 4, July 30, August 4, July 30, Showrooms $ 98,773 $ 98,226 $ 180,392 $ 181,800 Internet 44,326 41,425 80,929 81,650 Other 13,491 14,878 27,912 32,272 Total net sales $ 156,590 $ 154,529 $ 289,233 $ 295,722 The Company has no foreign operations and its net sales to foreign countries was less than .01% of total net sales for the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023. The Company had no customers that comprise more than 10% of total net sales for the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023. See Note 9 for sales disaggregated by product . Barter Arrangements The Company has a bartering arrangement with a third-party vendor. The Company repurposes returned open-box inventory in exchange for media credits, which are being used to support our advertising initiatives to create brand awareness and drive net sales growth. Barter transactions with commercial substance are recorded at a transaction price based on the estimated fair value of the non-cash consideration of the media credits to be received, and the revenue is recognized when control of inventory is transferred, which is when the inventory is picked up in our warehouse. Fair value is estimated using various considerations, including the cost of similar media advertising if transacted directly, the expected sales price of product given up in exchange for the media credits, and the expected usage of media credits prior to expiration based on forecasted media spend subject to media credits under the barter arrangement. The Company recognizes an asset for media credits which is subsequently evaluated for impairment at each reporting period for any changes in circumstances. As the barter credits are expected to be utilized at various dates through their expiration dates, the Company will classify the amount expected to be utilized in the next fiscal year as current, which is included in Prepaid expenses, with the remaining balance included as part of Other assets on the balance sheet. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 04, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the thirteen weeks ended August 4, 2024 and July 30, 2023, the Company recorded an income tax benefit of $1.8 million and less than $0.1 million, respectively, which reflects an effective tax rate of 23.7% and 1.0%, respectively. For the twenty-six weeks ended August 4, 2024 and July 30, 2023, the Company recorded an income tax benefit of $6.0 million and $1.3 million, respectively, which reflects an effective tax rate of 24.1% and 20.9%, respectively. The effective tax rate for the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023 varies from the 21% federal statutory tax rate primarily due to state taxes. The Company does not anticipate any material adjustments relating to unrecognized tax benefits within the next twelve months; however, the ultimate outcome of tax matters is uncertain and unforeseen results can occur. The Company had no material interest or penalties during the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023, and does not anticipate any such items during the next twelve months. The Company's policy is to record interest and penalties directly related to uncertain tax positions as income tax expense in the condensed statements of operations. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Common Share | 6 Months Ended |
Aug. 04, 2024 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Common Share | Basic and Diluted Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding plus dilutive potential common shares, including unvested restricted stock units, stock options, and warrants. Diluted net income per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities under the treasury stock method, where the average market price of the common stock exceeds the exercise prices for the respective periods. In periods of loss, there are no potentially dilutive common shares to add to the weighted average number of common shares outstanding. Thirteen weeks ended Twenty-six weeks ended (amounts in thousands, except per share data and share amounts) August 4, July 30, August 4, July 30, Net loss $ (5,861) $ (635) $ (18,821) $ (4,750) Weighted-average number of common shares outstanding, basic 15,590,207 15,422,640 15,564,016 15,326,702 Effect of dilutive securities (1) — — — — Weighted-average number of common shares outstanding, diluted 15,590,207 15,422,640 15,564,016 15,326,702 Basic net loss per share $ (0.38) $ (0.04) $ (1.21) $ (0.31) Diluted net loss per share $ (0.38) $ (0.04) $ (1.21) $ (0.31) (1) The effect of dilutive securities includes unvested restricted stock units and stock options. For the thirteen weeks ended August 4, 2024 and July 30, 2023, unvested restricted stock units of 1,325,091 and 1,060,705, respectively, and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. For the twenty-six weeks ended August 4, 2024 and July 30, 2023, unvested restricted stock units of 1,325,091 and 1,060,705, respectively, and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Leases
Leases | 6 Months Ended |
Aug. 04, 2024 | |
Leases [Abstract] | |
Leases | Leases Components of lease expense were as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended August 4, July 30, August 4, July 30, Operating lease expense $ 8,555 $ 7,391 $ 16,937 $ 14,395 Variable and short term lease expense 1,694 2,893 2,896 5,189 Total lease expense $ 10,249 $ 10,284 $ 19,833 $ 19,584 Variable lease expense includes percentage rent, maintenance, real estate taxes, insurance and other variable charges included in the lease as well as rental expenses related to short term leases. During the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023, we did not recognize any impairment charges associated with showroom-level right-of-use assets. Supplemental information related to our operating leases is as follows (in thousands): Twenty-six weeks ended (amounts in thousands) August 4, July 30, Operating cash flow information: Amounts paid on operating lease liabilities $ 16,682 $ 14,208 Non-cash activities: Right-of-use assets obtained in exchange for lease obligations $ 13,720 $ 24,676 Weighted average remaining lease term - operating leases 7.1 years 7.6 years Weighted average discount rate - operating leases 5.09 % 4.55 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 04, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is involved in various legal proceedings in the ordinary course of business. Management cannot presently predict the outcome of these matters, although management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a materially adverse effect on the Company’s condensed financial position, results of operations or cash flows. The Company has voluntarily self-reported to the SEC information concerning the internal investigation of the accounting matters that led to the restatement of its previously issued audited financial statements as of and for the year ended January 29, 2023 and our unaudited condensed financial statements for the quarterly periods ended April 30, 2023, October 30, 2022, July 31, 2022 and May 1, 2022. As a result of self-reporting, the Company is the subject of an ongoing, non-public investigation by the SEC. As previously disclosed, the Company has been cooperating fully with the SEC in its investigation. The Company is now engaged in discussions with the SEC about a potential resolution of the investigation, though there can be no assurance as to the outcome of these discussions. The ultimate resolution could result in the SEC imposing various penalties and relief including, without limitation, civil injunctive relief and/or civil monetary penalties or administrative relief. However, the outcome of the investigation and ultimate resolution cannot be predicted at this time. On December 19, 2023, a putative securities class action was filed against the Company and certain of its current and former officers related to the restatement of certain of the Company’s financial statements. The suit, captioned Gutknecht v. The Lovesac Company , No. 3:23-cv-1640, was filed in the United States District Court for the District of Connecticut and alleges that all defendants violated Sections 10(b) of the Exchange Act and SEC Rule 10b-5 and that the individual defendants violated Section 20(a) of the Exchange Act. The complaint generally alleges that the Company made certain misrepresentations or failed to disclose certain accounting errors related to the restatement of its financial statements and that the Company’s disclosure controls and procedures and internal controls over financial reporting were deficient. The plaintiffs seek, among other things, an unspecified amount of damages and attorneys’ fees, expert fees, and other costs. On March 11, 2024, the court appointed Susan Cooke Peña as Lead Plaintiff and The Rosen Law Firm, P.A. as Lead Counsel. On May 29, 2024, the parties entered into a term sheet to settle the action, subject to various conditions, including execution of a definitive settlement agreement, filing of the definitive agreement with the court, and court approval. The parties executed the definitive settlement agreement on July 30, 2024. The court preliminarily approved the proposed settlement on August 1, 2024, authorized dissemination of notice to the class, and scheduled a fairness hearing for December 9, 2024. The Company does not expect the settlement to have a material impact to the financial statements. On July 29, 2024, a putative shareholder derivative action captioned Getz v. Nelson , No. 3:24-cv-1260, was filed in the United States District Court for the District of Connecticut on behalf of the Company against certain of its current and former officers and directors. Two similar shareholder derivative actions, captioned Valle v. Dellomo , No. 3:24-cv-1327, and McKinnon v. Nelson , No. 3:24-cv-1343, were filed in the same court against the same defendants on August 19, 2024, and August 21, 2024, respectively. The cases assert claims on behalf of the Company for breach of fiduciary duty, violations of the Exchange Act, unjust enrichment, corporate waste, and aiding and abetting primary violations. The factual allegations underlying those claims are similar to those alleged in the securities class action. The plaintiffs seek, among other things, an unspecified amount of damages and attorneys’ fees, expert fees, and other costs. On September 11, 2024, the parties filed a stipulation asking the court to consolidate the three related cases. The cases are in their early stages and, therefore, the outcome cannot be predicted at this time. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Aug. 04, 2024 | |
Line of Credit Facility [Abstract] | |
Financing Arrangements | Financing Arrangements Revolving Line of Credit On February 6, 2018, the Company established a $25.0 million line of credit with Wells Fargo Bank, National Association (“Wells”). On March 25, 2022, the Company amended the credit agreement to extend the maturity date to March 25, 2024, and among other things, increase the maximum revolver commitment from $25.0 million to $40.0 million, subject to borrowing base and availability restrictions. Availability is based on eligible accounts receivable and inventory. The amended agreement contains a financial covenant that requires us to maintain undrawn availability under the credit facility of at least 10% of the lesser of (i) the aggregate commitments in the amount of $40.0 million and (ii) the amounts available under the credit facility based on eligible accounts receivable and inventory. Our credit agreement includes a $1.0 million sublimit for the issuance of letters of credit and a $4.0 million sublimit for swing line loans. On March 24, 2023, the Company amended the credit agreement to extend the maturity date to September 30, 2024. On July 29, 2024, the Company amended the credit agreement to, among other things, add an uncommitted accordion feature that allows the Company, subject to certain customary conditions, increase the size of the revolving credit facility by $10.0 million and extend the maturity date of the loans made under the credit agreement from September 30, 2024 to July 29, 2029. As of August 4, 2024 and February 4, 2024, the Company’s borrowing availability under the line of credit with Wells was $36.0 million. As of August 4, 2024 and February 4, 2024, there were no borrowings outstanding on this line of credit. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Aug. 04, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock Warrants On June 29, 2018, the Company issued 281,750 warrants with a five-year term to Roth Capital Partners, LLC as part of the underwriting agreement in connection with the Company's IPO. Warrants may be exercised on a cashless basis, where the holders receive fewer shares of common stock in lieu of a cash payment to the Company. On June 26, 2023, Roth Capital Partners, LLC performed a cashless exercise of all 281,750 remaining outstanding warrants resulting in 74,592 net shares issued. As of August 4, 2024, no warrants remain outstanding. Equity Incentive Plans The Company adopted the Second Amended and Restated 2017 Equity Incentive Plan (the “2017 Equity Plan”) which provides for awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance based restricted stock units, cash-based awards and other stock-based awards. All awards shall be granted within 10 years from the effective date of the 2017 Equity Plan. In fiscal 2025, the 2017 Equity Plan was amended to increase the shares of our common stock authorized and reserved for issuance by 1,100,000 shares, which increased the number of shares of common stock reserved for issuance under the 2017 Equity Plan to 3,979,889 shares of common stock. Time-Based Restricted Stock Units Time-based restricted stock units ("RSU awards") granted under the 2017 Equity Plan are generally subject to only a service-based vesting condition. RSU awards vest equally over three years on the anniversary date of the grant date if employed at the time of vesting. The valuation of these RSU awards is based solely on the fair value of the Company’s stock on the date of grant. Performance Based Restricted Stock Units Performance based restricted stock units ("PSU awards") granted under the 2017 Equity Plan are generally subject to both a service-based vesting condition and a performance-based vesting condition. PSU awards will vest upon the achievement of specified performance targets and subject to continued service through the applicable vesting dates. The stock-based compensation expense relating to PSU awards is recognized over the requisite service period when it is probable that the performance condition will be satisfied. Stock Options In June 2019, the Company granted 495,366 non-statutory stock options to certain officers of the Company with an exercise price of $38.10 per share. 100% of the stock options are subject to vesting on the third anniversary of the date of grant if the officers are still employed by the Company and the average closing price of the Company’s common stock for the prior 40 consecutive trading days has been at least $75 by the third anniversary of the grant. Both the employment and the market condition were originally to be satisfied no later than June 5, 2022 or the options would terminate. These options were valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the options shall vest. The 495,366 stock options were modified in fiscal 2022 to extend the term of the options through June 5, 2024. This resulted in additional compensation of approximately $0.9 million of which, $0.3 million was recorded upon modification with the remaining expense to be recognized over the remaining expected term. The market condition was met on June 5, 2021, which was the date on which the average closing price of the Company’s common stock had been at least $75 for 40 consecutive trading days. The options vested and became exercisable on June 5, 2022 as the officers were still employed on that date. There were no stock options issued, exercised, or expired and canceled for the thirteen and twenty-six weeks ended August 4, 2024 and July 30, 2023. As of August 4, 2024, 495,366 stock options remain outstanding with a weighted average exercise price of $38.10, a weighted average remaining contractual life of 4.84 years, and no intrinsic value. As of July 30, 2023, 495,366 stock options remain outstanding with a weighted average exercise price of $38.10, a weighted average remaining contractual life of 0.85 years and no intrinsic value. Time and Performance Based Restricted Stock Units The following table summarizes the Company's RSU and PSU awards activity during the twenty-six weeks ended August 4, 2024 and July 30, 2023: Number of shares Weighted average grant date fair value Unvested at February 4, 2024 1,032,408 $ 31.41 Granted 836,330 21.37 Forfeited (446,192) 33.39 Vested (97,455) 33.83 Unvested at August 4, 2024 1,325,091 $ 24.23 Number of shares Weighted average grant date fair value Unvested at January 29, 2023 640,256 $ 34.50 Granted 815,340 26.76 Forfeited (25,874) 35.32 Vested (369,017) 24.37 Unvested at July 30, 2023 1,060,705 $ 32.05 For the thirteen weeks ended August 4, 2024 and July 30, 2023, the Company recognized equity based compensation expense of $2.8 million and $1.3 million, respectively, and for the twenty-six weeks ended August 4, 2024 and July 30, 2023, the Company recognized equity based compensation expense of $3.9 million and $2.0 million, respectively. The total unrecognized equity-based compensation cost related to unvested RSU and PSU awards was approximately $23.1 million as of August 4, 2024 and will be recognized in operations over a weighted average period of 2.80 years. In March 2023, Shawn Nelson, our Chief Executive Officer, received a one-time performance and retention long-term incentive grant of 235,000 Restricted Stock Units (the “RSU Grant”) pursuant to the 2017 Equity Plan and Mr. Nelson’s Restricted Stock Units Agreement and Grant Notice (the “RSU Agreement”). The RSU Grant vests on the later to occur of (i) the fifth anniversary of the date of grant so long as, (x) on or prior to such date (subject to certain limited extensions), the Company has achieved a specified level of performance with respect to share price and net sales, and (y) Mr. Nelson remains in continuous service with the Company as Chief Executive Officer through such date; or (ii) if the specified level of performance with respect to net sales is not achieved on or prior to the fifth anniversary of the date of grant, but the other conditions in subclause (i) are achieved, the first date that such specified level of performance with respect to net sales is achieved, so long as it is achieved on or prior to the seventh anniversary of the date of grant and so long as Mr. Nelson remains in continuous service with the Company through such date. Except in the event of termination of employment as defined in the 2017 Equity Plan, the RSU Grant will be settled in shares of common stock of the Company on the first anniversary of the applicable vesting date. The RSU grant was valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the options shall vest. The expense will be recognized on a straight-line basis over the longest of the derived, explicit, or implicit service period. Share Repurchase Program On June 11, 2024, our Board of Directors approved a $40.0 million share repurchase program. Under the share repurchase program, we may repurchase shares from time to time in the open market, privately negotiated transactions and accelerated share repurchase. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the share repurchase program at any time. The exact number of shares to be repurchased by the Company, if any, is not guaranteed. Depending on market conditions and other factors, these repurchases may be commenced or suspended at any time or periodically without prior notice. We did not repurchase any of our equity securities during the thirteen weeks ended August 4, 2024. As of August 4, 2024, we have $40.0 million of remaining availability under the share repurchase program |
Segment Information
Segment Information | 6 Months Ended |
Aug. 04, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Segments are reflective of how the chief operating decision makers ("CODM") review operating results for the purpose of allocating resources and assessing performance. The CODM group of the Company is comprised of the Chief Executive Officer and the President/Chief Operating Officer. The Company's operating segments are the sales channels, which share similar economic and other qualitative characteristics, and are aggregated together as one reportable segment. The Company’s net sales by product which are considered one segment are as follows: Thirteen weeks ended Twenty-six weeks ended (amounts in thousands) August 4, July 30, August 4, July 30, Sactionals $ 142,967 $ 140,507 $ 264,786 $ 268,413 Sacs 11,623 11,663 20,486 22,399 Other 2,000 2,359 3,961 4,910 Total net sales $ 156,590 $ 154,529 $ 289,233 $ 295,722 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 04, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. The Company evaluates its estimates and judgments on an ongoing basis based on historical experience, expectations of future events and various other factors we believe to be reasonable under the circumstances and revise them when necessary in the period the change is determined. Actual results may differ from the original or revised estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We have considered all recent accounting pronouncements issued by the Financial Accounting Standards Board, and did not adopt any new accounting pronouncements during the thirteen weeks ended August 4, 2024 that had a material impact on our financial condition, results of operations or cash flows. There were no significant changes in recently issued accounting pronouncements pending adoption from those disclosed in our Annual Report on Form 10-K for the fiscal year ended February 4, 2024, and those not discussed in our Annual Report on Form 10-K are either not applicable or are not expected to have a material impact on our financial condition, results of operations or cash flows. |
Employee Benefit Plan | Employee Benefit Plan |
Shipping And Handling Charges | Shipping and handling charges billed to customers are included in revenue. The Company recognizes shipping and handling expense as fulfillment activities (rather than a promised good or service) when the activities are performed. Accordingly, the Company records the expenses for shipping and handling activities at the same time the Company recognizes revenue. Shipping and handling costs incurred are included in cost of merchandise sold and include inbound freight and tariff costs relative to inventory sold, warehousing, and last mile shipping to our customers. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Aug. 04, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Sales Disaggregated by Channel | The following represents net sales disaggregated by channel: Thirteen weeks ended Twenty-six weeks ended (amounts in thousands) August 4, July 30, August 4, July 30, Showrooms $ 98,773 $ 98,226 $ 180,392 $ 181,800 Internet 44,326 41,425 80,929 81,650 Other 13,491 14,878 27,912 32,272 Total net sales $ 156,590 $ 154,529 $ 289,233 $ 295,722 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Aug. 04, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Common Share | Thirteen weeks ended Twenty-six weeks ended (amounts in thousands, except per share data and share amounts) August 4, July 30, August 4, July 30, Net loss $ (5,861) $ (635) $ (18,821) $ (4,750) Weighted-average number of common shares outstanding, basic 15,590,207 15,422,640 15,564,016 15,326,702 Effect of dilutive securities (1) — — — — Weighted-average number of common shares outstanding, diluted 15,590,207 15,422,640 15,564,016 15,326,702 Basic net loss per share $ (0.38) $ (0.04) $ (1.21) $ (0.31) Diluted net loss per share $ (0.38) $ (0.04) $ (1.21) $ (0.31) (1) The effect of dilutive securities includes unvested restricted stock units and stock options. For the thirteen weeks ended August 4, 2024 and July 30, 2023, unvested restricted stock units of 1,325,091 and 1,060,705, respectively, and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. For the twenty-six weeks ended August 4, 2024 and July 30, 2023, unvested restricted stock units of 1,325,091 and 1,060,705, respectively, and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 04, 2024 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | Components of lease expense were as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended August 4, July 30, August 4, July 30, Operating lease expense $ 8,555 $ 7,391 $ 16,937 $ 14,395 Variable and short term lease expense 1,694 2,893 2,896 5,189 Total lease expense $ 10,249 $ 10,284 $ 19,833 $ 19,584 |
Schedule of Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases | Supplemental information related to our operating leases is as follows (in thousands): Twenty-six weeks ended (amounts in thousands) August 4, July 30, Operating cash flow information: Amounts paid on operating lease liabilities $ 16,682 $ 14,208 Non-cash activities: Right-of-use assets obtained in exchange for lease obligations $ 13,720 $ 24,676 Weighted average remaining lease term - operating leases 7.1 years 7.6 years Weighted average discount rate - operating leases 5.09 % 4.55 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Aug. 04, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Unvested Restricted Stock | The following table summarizes the Company's RSU and PSU awards activity during the twenty-six weeks ended August 4, 2024 and July 30, 2023: Number of shares Weighted average grant date fair value Unvested at February 4, 2024 1,032,408 $ 31.41 Granted 836,330 21.37 Forfeited (446,192) 33.39 Vested (97,455) 33.83 Unvested at August 4, 2024 1,325,091 $ 24.23 Number of shares Weighted average grant date fair value Unvested at January 29, 2023 640,256 $ 34.50 Granted 815,340 26.76 Forfeited (25,874) 35.32 Vested (369,017) 24.37 Unvested at July 30, 2023 1,060,705 $ 32.05 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 04, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The Company’s net sales by product which are considered one segment are as follows: Thirteen weeks ended Twenty-six weeks ended (amounts in thousands) August 4, July 30, August 4, July 30, Sactionals $ 142,967 $ 140,507 $ 264,786 $ 268,413 Sacs 11,623 11,663 20,486 22,399 Other 2,000 2,359 3,961 4,910 Total net sales $ 156,590 $ 154,529 $ 289,233 $ 295,722 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 USD ($) showroom | Jul. 30, 2023 USD ($) | Aug. 04, 2024 USD ($) showroom | Jul. 30, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of stores | showroom | 254 | 254 | ||
Contributions plan, percentage | 100% | |||
Employer contribution plan, cost | $ | $ 0.6 | $ 0.3 | $ 1.1 | $ 0.8 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | Feb. 04, 2024 | |
Disaggregation of Revenue [Line Items] | |||||
Cost of merchandise sold | $ 64,221 | $ 62,139 | $ 124,819 | $ 132,757 | |
Returns allowance | 4,800 | 4,800 | $ 5,600 | ||
Accrued expenses | 1,100 | 1,100 | 1,300 | ||
Customer deposit liabilities | 15,300 | 15,300 | 8,300 | ||
Recognized related to customer deposits | 8,300 | 6,800 | |||
Inventory exchanged for media credits | 2,500 | $ 2,800 | 6,500 | $ 6,900 | |
Unused media credits, current | 6,000 | 6,000 | 5,100 | ||
Unused media credits, noncurrent | $ 30,800 | $ 30,800 | $ 27,700 | ||
Foreign Countries | Revenue Benchmark | Geographic Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration of sales (less than) | 0.01% | 0.01% | 0.01% | 0.01% | |
Shipping and Handling | |||||
Disaggregation of Revenue [Line Items] | |||||
Cost of merchandise sold | $ 25,400 | $ 25,600 | $ 53,800 | $ 63,500 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Sales Disaggregated by Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 156,590 | $ 154,529 | $ 289,233 | $ 295,722 |
Showrooms | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 98,773 | 98,226 | 180,392 | 181,800 |
Internet | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 44,326 | 41,425 | 80,929 | 81,650 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 13,491 | $ 14,878 | $ 27,912 | $ 32,272 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ 1,816 | $ 7 | $ 5,968 | $ 1,257 |
Effective income tax rate, percent | 23.70% | 1% | 24.10% | 20.90% |
Penalties and interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Common Share - Schedule of Computation of Basic and Diluted Net Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (5,861) | $ (635) | $ (18,821) | $ (4,750) |
Weighted-average number of common shares outstanding, basic (in shares) | 15,590,207 | 15,422,640 | 15,564,016 | 15,326,702 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted-average number of common shares outstanding, diluted (in shares) | 15,590,207 | 15,422,640 | 15,564,016 | 15,326,702 |
Basic net loss per share (in dollars per share) | $ (0.38) | $ (0.04) | $ (1.21) | $ (0.31) |
Diluted net loss per share (in dollars per share) | $ (0.38) | $ (0.04) | $ (1.21) | $ (0.31) |
Basic and Diluted Net Income _4
Basic and Diluted Net Income (Loss) Per Common Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive (in shares) | 1,325,091 | 1,060,705 | 1,325,091 | 1,060,705 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive (in shares) | 495,366 | 495,366 | 495,366 | 495,366 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 8,555 | $ 7,391 | $ 16,937 | $ 14,395 |
Variable and short term lease expense | 1,694 | 2,893 | 2,896 | 5,189 |
Total lease expense | $ 10,249 | $ 10,284 | $ 19,833 | $ 19,584 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Leases [Abstract] | ||||
Impairment charges associated with ROU assets | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2024 | Jul. 30, 2023 | |
Operating cash flow information: | ||
Amounts paid on operating lease liabilities | $ 16,682 | $ 14,208 |
Non-cash activities: | ||
Right-of-use assets obtained in exchange for lease obligations | $ 13,720 | $ 24,676 |
Weighted average remaining lease term - operating leases | 7 years 1 month 6 days | 7 years 7 months 6 days |
Weighted average discount rate - operating leases | 5.09% | 4.55% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Aug. 19, 2024 action |
Valle v. Dellomo & McKinnon v. Nelson | Pending Litigation | Subsequent Event | |
Loss Contingencies [Line Items] | |
Derivative actions | 2 |
Financing Arrangements (Details
Financing Arrangements (Details) - Wells Fargo Bank - USD ($) | Mar. 25, 2022 | Aug. 04, 2024 | Jul. 29, 2024 | Feb. 04, 2024 | Feb. 06, 2018 |
Swing loans | |||||
Line of Credit Facility [Line Items] | |||||
Sublimit amount | $ 4,000,000 | ||||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowings amount | $ 40,000,000 | $ 36,000,000 | $ 36,000,000 | $ 25,000,000 | |
Minimum undrawn availability | 10% | ||||
Line of credit facility, increase amount | $ 10,000,000 | ||||
Line of credit | $ 0 | $ 0 | |||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Sublimit amount | $ 1,000,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 26, 2023 shares | Jun. 05, 2021 d $ / shares | Jun. 29, 2018 shares | Mar. 31, 2023 shares | Jun. 30, 2019 d $ / shares shares | Aug. 04, 2024 USD ($) $ / shares shares | Jul. 30, 2023 USD ($) $ / shares shares | Aug. 04, 2024 USD ($) $ / shares shares | Jul. 30, 2023 USD ($) $ / shares shares | Jan. 30, 2022 USD ($) shares | Jun. 11, 2024 USD ($) | |
Class of Stock [Line Items] | |||||||||||
Stock option price exercise (in dollars per share) | $ / shares | $ 38.10 | ||||||||||
Stock options are subject to vesting percentage | 100% | ||||||||||
Consecutive trading days | d | 40 | 40 | |||||||||
Share price (in dollars per share) | $ / shares | $ 75 | $ 75 | |||||||||
Additional compensation | $ | $ 900,000 | ||||||||||
Modification and remaining expense was recognized | $ | $ 300,000 | ||||||||||
Number of options, exercised (in shares) | 0 | 0 | 0 | 0 | |||||||
Number of options, expired (in shares) | 0 | 0 | 0 | 0 | |||||||
Number of options, cancelled (in shares) | 0 | 0 | 0 | 0 | |||||||
Number of options, outstanding (in shares) | 495,366 | 495,366 | 495,366 | 495,366 | |||||||
Weighted average exercise price, outstanding (in dollars per share) | $ / shares | $ 38.10 | $ 38.10 | $ 38.10 | $ 38.10 | |||||||
Weighted average remaining contractual life, outstanding (in years) | 4 years 10 months 2 days | 10 months 6 days | |||||||||
Average intrinsic value, outstanding (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Equity based compensation expense | $ | $ 2,800,000 | $ 1,300,000 | $ 3,900,000 | $ 2,000,000 | |||||||
Total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards | $ | 23,100,000 | $ 23,100,000 | |||||||||
Weighted average period | 2 years 9 months 18 days | ||||||||||
Share repurchase program, remaining authorized, amount | $ | $ 40,000,000 | $ 40,000,000 | |||||||||
Common | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share repurchase authorized, amount | $ | $ 40,000,000 | ||||||||||
Stock repurchased (in shares) | 0 | ||||||||||
Restricted stock units | Chief Executive Officer | |||||||||||
Class of Stock [Line Items] | |||||||||||
Restricted stock award grant (in shares) | 235,000 | ||||||||||
Stock options | |||||||||||
Class of Stock [Line Items] | |||||||||||
Non statutory stock options granted (in shares) | 495,366 | 495,366 | |||||||||
Number of options issued (in shares) | 0 | 0 | 0 | 0 | |||||||
2017 Equity Incentive Plan | |||||||||||
Class of Stock [Line Items] | |||||||||||
Granted term | 10 years | ||||||||||
Increase in common stock reserved for future issuance (in shares) | 1,100,000 | ||||||||||
Common stock reserved issuance (in shares) | 3,979,889 | 3,979,889 | |||||||||
2017 Equity Incentive Plan | Restricted stock units | |||||||||||
Class of Stock [Line Items] | |||||||||||
Vesting period | 3 years | ||||||||||
Roth Capital Partners, LLC | Common Stock Warrant | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants issued (in shares) | 74,592 | 281,750 | |||||||||
Warrants issued, term | 5 years | ||||||||||
Number of warrants, warrants outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Unvested Restricted Stock (Details) - Restricted Stock Units - $ / shares | 6 Months Ended | |
Aug. 04, 2024 | Jul. 30, 2023 | |
Number of shares | ||
Unvested, beginning balance (in shares) | 1,032,408 | 640,256 |
Granted (in shares) | 836,330 | 815,340 |
Forfeited (in shares) | (446,192) | (25,874) |
Vested (in shares) | (97,455) | (369,017) |
Unvested, ending balance (in shares) | 1,325,091 | 1,060,705 |
Weighted average grant date fair value | ||
Unvested, beginning balance (in dollars per share) | $ 31.41 | $ 34.50 |
Granted (in dollars per share) | 21.37 | 26.76 |
Forfeited (in dollars per share) | 33.39 | 35.32 |
Vested (in dollars per share) | 33.83 | 24.37 |
Unvested, ending balance (in dollars per share) | $ 24.23 | $ 32.05 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Aug. 04, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of operating segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2024 | Jul. 30, 2023 | Aug. 04, 2024 | Jul. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 156,590 | $ 154,529 | $ 289,233 | $ 295,722 |
Sactionals | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 142,967 | 140,507 | 264,786 | 268,413 |
Sacs | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 11,623 | 11,663 | 20,486 | 22,399 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,000 | $ 2,359 | $ 3,961 | $ 4,910 |