Thomas Ferris Forte

Thomas Forte asked about the potential for Lovesac to manufacture products in the U.S. and requested an update on the company's re-commerce efforts, specifically the 'Loved by Lovesac' resale platform.

Answer

CEO Shawn Nelson expressed his passion for domestic manufacturing, stating that Lovesac is actively pursuing it and is closer than ever, confident that a significant portion of manufacturing will move domestically over the next quarters due to the component-based nature of their products. President Mary Fox provided an update on 'Loved by Lovesac,' noting its expansion from one state (Texas) to five additional states, with more planned. She highlighted its role in building the value proposition, enabling trade-ins (with a pilot later this year and full rollout next year), and activating the customer lifetime value flywheel, which is a unique and profitable advantage for Lovesac.

Thomas Ferris Forte asked about the potential for Lovesac to manufacture products in the U.S. and how investors should think about this prospect. He also requested an update on Lovesac's re-commerce efforts, specifically the 'Loved by Lovesac' platform, and its potential to provide value to consumers and mitigate tariff impacts.

Answer

CEO Shawn Nelson expressed his passion for domestic manufacturing, stating that Lovesac is 'running this down really hard.' He highlighted that the component-based nature of Lovesac's products makes it feasible to produce them closer to consumers, leading to shorter delivery distances, greater sustainability, and readiness, with confidence that a significant portion of manufacturing will move domestically over the next number of quarters. President Mary Fox reported that the 'Loved by Lovesac' resale platform has expanded to five additional states, with more planned. She emphasized its role in building the brand's value proposition by demonstrating product longevity and enabling future trade-in capabilities, with a pilot for trade-ins planned for late this year and a broader rollout next year.