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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.
−Removed: Our current product offering is comprised of modular couches called Sactionals, premium foam beanbag chairs called Sacs, and their associated home decor accessories.
+Added: Our current product offering is comprised of modular couches called Sactionals, premium foam beanbag chairs called Sacs, the immersive surround sound home theater system called StealthTech, and the most recently launched PillowSac TM Accent Chair and Sactionals Reclining Seat.
Innovation is at the center of our design philosophy with all of our core products protected by a robust portfolio of utility patents.
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Product Overview
−Removed: Our products serve as a set of building blocks that can be rearranged, restyled and re-upholstered with any new setting, mitigating constant changes in fashion and style.
+Added: Our products serve as a set of building blocks that can be rearranged, restyled and re-upholstered for any new setting or occasion, mitigating constant changes in fashion and style.
They are built to last and evolve throughout a customer’s life.
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Our Sactional products include a number of patented features relating to their geometry and modularity, coupling mechanisms and other features.
−Removed: Utilizing only two, standardized pieces, “seats” and “sides,” and approximately 200 high quality, tight-fitting covers that are removable, washable, and changeable, customers can create numerous permutations of a sectional couch with minimal effort.
+Added: Utilizing primarily two, standardized pieces, “seats” and “sides,” and approximately 200 high quality, tight-fitting cover options that are removable, washable, and changeable, customers can create numerous permutations of a sectional couch with minimal effort.
Cu stomization is further enhanced with our specialty-shaped modular offerings, such as our wedge seat, roll arm and angled sides.
+Added: In September 2024, we launched the AnyTable TM , a versatile table that seamlessly enhances any Sactionals living space, and in November 2024, we launched the Sactionals Reclining Seat, an innovation that integrates advanced reclining technology and delivers unparalleled comfort and flexibility while maintaining the sleek, sophisticated aesthetic of our Sactionals.
Our custom features and accessories can be added easily and quickly to a Sactional to meet endless design, style, storage and utility preferences, reflecting our Designed for Life philosophy.
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Sactionals are comprised of standardized units and we guarantee their compatibility over time, which we believe is a major pillar of their value proposition to the consumer.
−Removed: Our Sactionals represented 91.0%, 89.8% and 87.6% of our sales for fiscal 2024, 2023 and 2022, respectively.
−Removed: In October 2021, we introduced the Sactionals StealthTech Sound + Charge product line.
−Removed: This unique innovation features immersive surround sound by Harman Kardon and convenient wireless charging, all seamlessly embedded and hidden inside the adaptable Sactionals platform.
+Added: Our Sactionals represented 91.4%, 91.0% and 89.8% of our net sales for fiscal 2025, 2024 and 2023, respectively.
+Added: Our Sactionals StealthTech Sound + Charge product line complements our Sactionals as a unique innovation that features immersive surround sound by Harman Kardon and convenient wireless charging, all seamlessly embedded and hidden inside the adaptable Sactionals platform.
The system includes two Sound + Charge Sides each with embedded front- and rear-firing Harman Kardon speakers, a Subwoofer that easily integrates into a Sactionals Seat Frame and a Center Channel, all working in unison to deliver captivating surround sound that is completely hidden from view.
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The Satellite Subwoofer is an upgrade to the existing StealthTech setup and enhances the bass and overall entertainment experience.
+Added: In November 2024, we launched the StealthTech Charge Side, integrating wireless device charging into our Sactionals Sides without the need for our sound system.
We believe that our Sacs product line is a category leader in oversized beanbags.
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Their removable covers are machine washable and may be easily replaced with a wide selection of cover offerings.
−Removed: Our Sacs represented 7.4%, 8.5% and 10.5% of our sales for fiscal 2024, 2023 and 2022, respectively.
−Removed: Our Other product line complements our Sacs and Sactionals by increasing their adaptability to meet evolving consumer demands and preferences.
−Removed: Our current product line offers Sactional-specific drink holders, Footsac blankets, decorative pillows, fitted seat tables and ottomans in varying styles and finishes and our unique Sactionals Power Hub, providing our customers with the flexibility to customize their furnishings with decorative and practical add-ons to meet evolving style preferences.
+Added: In May 2024, we launched the PillowSac TM Accent Chair Frame, an accessory that elevates the style and comfort of our existing PillowSac.
+Added: Our Sacs represented 7.2%, 7.4% and 8.5% of our net sales for fiscal 2025, 2024 and 2023, respectively.
+Added: Our Other product line enhances the versatility of our Sacs and Sactionals, catering to the evolving demands and preferences of our customers.
+Added: Our current offerings include Sactional-specific drink holders, Footsac blankets, decorative pillows, fitted seat tables, ottomans in various styles and finishes, and the unique Sactionals Power Hub.
+Added: These products provide our customers with the flexibility to personalize their furnishings with both decorative and practical add-ons, ensuring they can adapt to meet changing style preferences.
Sales Channels
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Our goal is to educate first-time customers, creating an environment where people can touch, feel, read, and understand the technology behind our products.
−Removed: Our showroom concept emphasizes our unique product platform and utilizes technology in more experiential ways to increase traffic and sales.
+Added: Our showroom concept emphasizes our unique product platform and utilizes technology in more experiential ways to increase traffic and net sales.
Net sales generated by this channel accounted for 62.6%, 62.5% and 61.2% of total net sales for fiscal 2025, 2024 and 2023, respectively.
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We believe our robust technological capabilities position us well to benefit from the growing consumer preference to transact at home and via mobile devices.
−Removed: With furniture especially suited to ecommerce applications, our net sales completed through this channel accounted for 28.5%, 27.1% and 30.2% of total net sales for fiscal 2024, 2023 and 2022, respectively.
+Added: With furniture especially suited to ecommerce applications, our net sales generated by this channel accounted for 28.8%, 28.5% and 27.1% of total net sales for fiscal 2025, 2024 and 2023, respectively.
• Other touchpoints .
We augment our showrooms with other touchpoint strategies including online and in store pop-up-shops, shop-in-shops, and barter inventory transactions.
+Added: ◦ In store and online pop-up-shops .
We utilize in store pop-up-shops to increase the number of locations where customers can experience and purchase our products, a low cost alternative to drive brand awareness, in store sales, and ecommerce sales.
−Removed: These in store pop-up-shops are staffed similarly to our showrooms with associates trained to demonstrate and sell our products and promote our brand.
−Removed: Unlike the in store pop-up-shops which are typically 10-day shows, and pop-up locations, shop-in-shops are designed to be in permanent locations carrying the same digital technology of our showrooms and are also staffed with associates trained to demonstrate and sell our products.
+Added: These in store pop-up-shops are typically 10-day shows and are staffed similarly to our showrooms with associates trained to demonstrate and sell our products and promote our brand.
+Added: In fiscal 2025 and 2024, we operated 601 and 424 in store pop-up-shops, respectively, and 9 and 8 online pop-ups on Costco.com, respectively.
+Added: ◦ Shop-in-shops .
+Added: Shop-in-shops are designed to be in permanent locations carrying the same digital technology of our showrooms and are also staffed with associates trained to demonstrate and sell our products.
Shop-in-shops require less capital expenditure to open a productive space to drive brand awareness and touchpoint opportunities for demonstrating and selling our products.
−Removed: At fiscal year end 2024, we operated 44 shop-in-shops at Best Buy and online at Best Buy.com as compared to 22 shop-in-shops at fiscal year end 2023.
−Removed: We hosted 8 online pop-ups on Costco.com and 424 in store pop-up-shops in fiscal 2024 as compared to 9 online pop-ups and 113 in store pop-up-shops in fiscal 2023.
−Removed: We expect to continue hosting both online pop-ups on Costco.com and Costco in store pop-up-shops.
−Removed: Our barter inventory transactions with a third party vendor are part of our Circular Operations ("CO"), Designed for Life, and Environmental, Social and Governance ("ESG") initiatives.
+Added: As of February 2, 2025 and February 4, 2024, we operated 49 and 44 Best Buy shop-in-shops, respectively.
+Added: ◦ Barter inventory transactions .
+Added: Our barter inventory transactions with a third party vendor are part of our Circle Operations ("CO"), Designed for Life, and Environmental, Social and Governance ("ESG") initiatives.
CO is a way of doing business that is meant to reduce our footprint, while dramatically extending the life of products through more looped, localized, long-term, and sustainable practices, policies, and programs.
We repurpose 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.
−Removed: Other sales, which includes pop-up-shop, shop-in-shop and barter inventory transactions sales, accounted for 9.0%, 11.7% and 9.8% of total net sales for fiscal 2024, 2023 and 2022, respectively.
+Added: Other net sales, which includes pop-up-shop sales, shop-in-shop sales, and barter inventory transactions, accounted for 8.6%, 9.0% and 11.7% of total net sales for fiscal 2025, 2024 and 2023, respectively.
Our Designed for Life products provide flexibility, upgrade ability and sustainability, elements that attract a wide customer base and can change as their life changes.
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We consider this to be an attractive demographic because of its higher than average rates of household formation and furniture purchasing.
−Removed: Since 2020, we have experienced accelerated growth in new customer transactions from our target customers and beyond, demonstrating the expansive relatability and demand of our products.
+Added: Since 2020, we have experienced growth in new customer transactions from our target customers and beyond, demonstrating the expansive relatability and demand of our products.
• Customer Lifetime Value.
−Removed: We aim to maximize customer lifetime value for both new and existing customers by delivering a consistent brand message across our omni-channel platform, which we believe influences our customers’ buying decisions, and through our unique product offerings designed to evolve with our customers’
+Added: We aim to maximize customer lifetime value for both new and existing customers by delivering a consistent brand message across our omni-channel platform, which we believe influences our customers’ buying decisions, and through our unique product offerings designed to evolve with our customers’ needs.
We believe we have an opportunity to increase revenue and loyalty from new and existing customers, thereby extending customer lifetime value.
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Continue to Build on Our Brand
−Removed: We aggressively invest in brand building and direct marketing efforts through a robust and diverse marketing mix.
−Removed: Our focus on building the Lovesac and Sactional brands has led to an increase in our new Sactional customer base, which grew by 19.1% in fiscal 2024.
+Added: We aggressively invest in brand building and direct marketing efforts through a robust and diverse marketing mix, with a focus on building the Lovesac and Sactional customer base.
Our ecommerce channel plays a significant role in the shopper journey as it is frequently the first step in the shopping journey a prospect will take and our first opportunity to build our brand and educate on our product.
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We continually evaluate new products to complement our Sactionals and Sac lines and are currently developing accessories for the tech-savvy consumer.
−Removed: During October 2021, we introduced the Sactionals StealthTech Sound + Charge product line.
−Removed: This unique innovation features immersive surround sound by Harman Kardon and convenient wireless charging, all seamlessly embedded and hidden inside the adaptable Sactionals platform.
+Added: Our patented StealthTech Sound + Charge product line is a unique innovation that features immersive surround sound by Harman Kardon and convenient wireless charging, all seamlessly embedded and hidden inside the adaptable Sactionals platform.
The System includes two Sound + Charge Sides each with embedded front- and rear-firing Harman Kardon speakers, a Subwoofer that easily integrates into a Sactionals Seat Frame and a Center Channel, all working in unison to deliver captivating surround sound that is completely hidden from view.
−Removed: In May 2023, we introduced Satellite Subwoofers as an add-on to the Sound + Charge System.
+Added: In fiscal year 2024, we introduced Satellite Subwoofers as an add-on to the Sound + Charge System.
The Satellite Subwoofer upgrades your existing StealthTech setup to enhance the bass and your overall entertainment experience.
+Added: In fiscal year 2025, we continued to build on our strategy of innovation
+Added: with the launches of the PillowSac TM Accent Chair, AnyTable TM , Sactionals Reclining Seat, and StealthTech Charge Side.
As we continue to grow our business and add additional showrooms in strategic locations across the United States, we seek the ability to service more customers locally with area-designated representatives who will shift their efforts between our showrooms and customers’ homes.
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Our products are positioned in the premium couch segment of the furniture market.
−Removed: We market as premium products because of our proprietary foam fillings, higher quality materials, our unique Designed For Life design philosophy, and unique Circular Operations operating philosophy requiring a distinct level of manufacturing and service capabilities.
−Removed: At our price point, we offer a unique value proposition that combines both beautiful aesthetics and utility to our customers that we believe our competitors
−Removed: cannot offer.
+Added: We market as premium products because of our proprietary foam fillings, higher quality materials, our unique Designed For Life design philosophy, and unique Circle Operations operating philosophy requiring a distinct level of manufacturing and service capabilities.
+Added: At our price point, we offer a unique value proposition that combines both beautiful aesthetics and utility to our customers that we believe our competitors cannot offer.
Additionally, our high-end branding strategy, further enhanced by our celebrity endorsements and large social media following, commands premium pricing, as we feel lowering prices may negatively affect the perception of our products.
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We manage a global supply chain of highly vetted and qualified, third-party manufacturing partners to produce our products.
−Removed: Our partners operate facilities located in the United States, China, Vietnam, Malaysia, Mexico, Taiwan, Indonesia, and India.
+Added: Our partners operate facilities located in Vietnam, China, Malaysia, Indonesia, Mexico, Taiwan, India, and the United States.
We do not currently own or operate any manufacturing facilities as we believe our partners’ facilities are sufficient to meet our current demand and will be able to meet any additional demand in the future.
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We are able to efficiently distribute and ship our products to our customers.
−Removed: Due to the unique modularity of our Sactionals products and the shrinkability of our Sacs, we are able to distribute our products through nationwide express couriers and efficiently utilize warehouse space and international shipping routes.
+Added: Due to the unique modularity of our Sactionals products and the ability to shrink our Sacs, we are able to distribute our products through nationwide express couriers and efficiently utilize warehouse space and international shipping routes.
We believe our Sactionals are the only product in its category that enjoys this logistical advantage.
We experience seasonal fluctuations in our sales.
−Removed: A larger percentage of our sales occur in the fourth quarter of our fiscal year, which coincides with Cyber Monday (the first Monday after Thanksgiving, when online retailers typically offer holiday discounts), the holiday season and our related promotional and marketing campaigns.
−Removed: Our fiscal 2024 quarters in sequential order equaled 20.2%, 22.1%, 22.0% and 35.7% of total net sales, respectively.
+Added: A larger percentage of our sales occur in the fourth quarter of our fiscal year, which coincides with Black Friday (the day after Thanksgiving, when retailers typically offer holiday discounts), the holiday season and our related promotional and marketing campaigns.
+Added: Our total net sales for each of the fiscal 2025 quarters in sequential order equaled 19.5%, 23.0%, 22.0% and 35.5%, respectively.
Intellectual Property
−Removed: We own 41 U.S.
+Added: W e own 41 U.S.
federal trademark registrations, 281 foreign trademark registrations, and a number of U.S.
and foreign trademark applications and common law trademark rights.
−Removed: Our registered U.S.
−Removed: trademarks include registrations for the Lovesac, Lovesoft, Sactionals, Durafoam, SAC, SACS, Moviesac, Supersac, Squattoman, Total Comfort, Gamersac, Citysac, Footsac, Always Fits.
−Removed: Forever New, The World’s Most Comfortable Seat, The World’s Most Adaptable Couch, Designed for Life, and DFL trademarks.
+Added: Some of our registered U.S.
+Added: trademarks include registrations for
+Added: Lovesac ® , Designed for Life ®, DFL®, Sactionals ® , SAC ® , StealthTech ®, Moviesac ® , Squattoman ® , Total Comfort ® , Footsac ® , The World’s Most Comfortable Seat ® , and The World’s Most Adaptable Couch ® .
Our trademarks, if not renewed, are scheduled to expire between calendar years 2024 and 2035.
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Our Sactional technology patents include our proprietary geometric modular system and segmented bi-coupling technology.
+Added: Our StealthTech technology patents include our proprietary sound and entertainment system.
We also have multiple patents pending and expect to file patent applications for future innovations.
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Social Responsibility Initiatives
−Removed: We are committed to providing a fulfilling and inclusive workplace, cultivating a diverse workforce and continuous opportunities to learn new skills.
+Added: We aim to foster an inclusive culture where associates feel welcomed and valued, something we believe that will help associates reach their fullest talent potential and deliver remarkable results.
+Added: Our Belonging at Lovesac initiatives focus on supporting associates, including focusing on the behaviors that will help mitigate bias throughout the employee experience to enable people of all identities and backgrounds to feel like they belong and do their best work.
+Added: Furthermore, we offer continuous opportunities to learn new skills on the job and tools to develop meaningful careers.
Associate development hours and engagement scores are regularly measured and reported with a goal to transparently share our progress in these areas each year.
−Removed: In fiscal 2021, we founded a Diversity, Equity, and Inclusion (DEI) council and steering committee (the "ESG Committee").
−Removed: This ESG Committee, continues to lead the growth of programs supporting underrepresented groups and empowering employees to be responsive equality leaders.
−Removed: In fiscal 2022, we announced measurable DEI goals of increasing the number of women and BIPOC in leadership roles throughout the Company to better reflect society as a whole.
−Removed: Progress toward our diversity goals is reported annually in our ESG and Impact report.
−Removed: Extending our social commitments beyond our own operations and into the communities we serve, we have established a committee to expand future community giving programs known as Lovesac Gives Back.
−Removed: The program's mission is to become the most beloved home brand in America and give back to the communities we serve.
+Added: Extending our social commitments beyond our own operations and into the communities where we can make a difference, we have established a committee to expand future community giving programs known as Lovesac Gives Back.
+Added: The program's mission is to support our ambition to become the most beloved home brand in America by giving back to the communities we serve.
Environmental Sustainability Initiatives
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To achieve these standards, we strive for all of our products to meet or exceed performance requirements for product durability, safety, and consumer satisfaction through rigorous safety inspections.
−Removed: In December 2023, we published our third annual Environmental, Social, and Governance (ESG) report aligned with the guidance of the Sustainability Accounting Standards Board (SASB).
+Added: In December 2024, we published our fourth annual Environmental, Social, and Governance (ESG) report aligned with the guidance of the Sustainability Accounting Standards Board (SASB).
We believe that transparently disclosing the goals and metrics pertinent to our ESG programs will grant our stakeholders continued visibility of our progress.
To that end, we expect to update this report annually for consistent transparency of our evolving ESG strategy and related efforts.
−Removed: recent ESG report is available at:
+Added: Our most recent ESG report is available at:
https://investor.lovesac.com/esg.
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These principles are the foundation of our business and grounded in true sustainability, a singular focus on high quality execution of fewer core products, consideration of all stakeholder perspectives in our decision-making, and championing meaningful relationships through the development of products that bring people together.
−Removed: Our corporate culture celebrates our associates at online rallies and annual events designed to engage our associates and reward them for exemplary work and embodiment of our values.
−Removed: We support our associates’ professional development through annual training programs on topics relevant to our business, functional areas, or policies and procedures.
−Removed: Our associates participate in quarterly coaching sessions with their managers where they are evaluated on their performance relative to certain key performance indicators and alignment with our values and given actionable feedback.
+Added: Our corporate culture celebrates our associates at online rallies and annual in-person events designed to engage our associates and reward them for exemplary performance and embodiment of our core competencies and values.
+Added: We support our associates’ professional development through training platforms and programs on topics relevant to our business, functional areas, or policies and procedures.
+Added: Our associates participate in coaching sessions with their managers where they are evaluated on their performance relative to certain key performance indicators and alignment with our core competencies and given actionable feedback.
We engage our associates on many levels to share learnings, educate, and foster community and connection.
Our talent acquisition strategy is to attract top talent and become a sought-after U.S.
−Removed: employer focused on our Designed For Life philosophy and a culture of diversity, equity and inclusivity.
+Added: employer focused on our Designed For Life philosophy and a culture of Top Ambition and Love Matters.
We have initiated this strategy by expanding the areas from which we source talent and offering flexible remote working opportunities for eligible associates.
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For associates supporting our showrooms, we implemented specific protocols to ensure the safety of our associates and our customers.
−Removed: As of February 4, 2024, we had 909 full-time associates and 1,082 part-time associates, and we contracted with five independent contractors.
−Removed: Our workforce was 55% female, and women hold 46% of the available leadership roles within the Company.
+Added: As of February 2, 2025, we had 920 full-time associates and 1,104 part-time associates, and we contracted with twenty-five independent contractors.
All associates and contractors are subject to contractual agreements that specify, among other things, requirements for confidentiality, ownership of newly developed intellectual property and restrictions on working for competitors as well as other matters.
−Removed: Diversity, Equity and Inclusion
−Removed: In fiscal 2024, we prioritized developing a strategic diversity, equity and inclusion plan to ensure a diverse workforce composition, operating in an inclusive and transparent workplace culture, to leverage all of our talents.
−Removed: We engaged with partners to guide our diversity, equity and inclusion strategy, and elicited feedback from our associates on factors affecting diverse individuals and communities.
−Removed: We also established a steering committee of senior leaders and a Diversity and Inclusion Council of associates to drive our program’s objectives.
−Removed: We have expanded our diversity recruiting practices, deployed training programs to increase awareness of diversity, equity and inclusion issues, and are developing tools to drive accountability toward achieving the Company’s goals.
−Removed: Our Director of DEI and People Strategy helps us continue to develop and execute our DEI mission by creating a clear roadmap, programs, and processes and a cohesive, inclusive experience for individuals who encounter the Lovesac brand.
+Added: Belonging at Lovesac
+Added: At Lovesac, we champion building meaningful relationships as we foster an inclusive culture that embraces and celebrates the individuality of everyone.
+Added: We believe that when associates feel welcomed and valued, they can reach their fullest talent potential and deliver remarkable results.
+Added: We believe our culture and our business is enhanced by our workforce being comprised of individuals with diverse backgrounds, perspectives, skills, and experiences that align with the needs of our business.
+Added: We are an equal opportunity employer.
+Added: We believe in meritocratic hiring of A players with the necessary skills and talent to move us into the next chapter and rewarding Associates for performance.
+Added: In fiscal 2025, we focused on the behaviors that will help mitigate bias throughout the employee experience to enable people of all identities and backgrounds to feel welcome and do their best work.
+Added: We maintained our steering committee of senior leaders and an action council of associates that direct and enable our belonging initiatives.
+Added: We measure the impact on our associates’ experiences through the annual Engagement Survey.
Product Development
We design and sell non-seasonally driven, Designed For Life products, that are focused on driving incremental value for our customer.
−Removed: The process leverages numerous inputs to shape our product roadmap, sequencing of product launches, and
−Removed: prioritization of product projects.
+Added: The process leverages numerous inputs to shape our product roadmap, sequencing of product launches, and prioritization of product projects.
A few examples of these sources of information are consumer insights generated by research commissioned by Lovesac, patterning our category and key competitors, and product opportunities developed to address customer satisfaction.
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federal, state and foreign laws and regulations covering a variety of subject matters, many of which are evolving.
−Removed: These laws and regulations involve matters including privacy, data use, data protection and personal information, intellectual property, product liability, ecommerce, taxation, economic or other trade prohibitions or sanctions, anti-corruption and political law compliance, securities law compliance, and online payment services.
+Added: These laws and regulations involve matters including privacy, data use, data protection and personal information, intellectual property, anti-spam, consumer credit offerings, content protection, electronic contracts and communications (such as “do not call/mail” and text messaging requirements), consumer protection, pricing transparency and false advertising, use of artificial intelligence, Internet neutrality, product liability and labeling, ecommerce, taxation, environmental, safety, economic or other trade prohibitions, sanctions, or tarrifs, anti-corruption and political law compliance, securities law compliance, and online payment services.
Our compliance with these laws and regulations may be onerous and could, individually or in the aggregate, increase our cost of doing business and/or otherwise have an adverse impact on our business, reputation, financial condition, and operating results.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.