Lovesac and sometimes we look at that, you know, is that a blessing or a curse? But we enjoy the extra business that comes by the exposure being out there in shopping centers during this time of year when there’s foot traffic, et cetera. But actually most of those sales as we observe them and as I observe them in the wilds, you know, in — on the front lines and showrooms come from these considered processes where customers are weighing the value. And then frankly, they leverage the holiday season to push them over the edge and make that purchase finally for themselves. It actually most of the time is not a gift or even related to gifting. It’s just kind of a psychological excuse to purchase. And so during this time of year in particular, the way that we manage promotions is really critical, because we have people that have been shopping us, maybe throughout the entire year and finally pulled the trigger and are waiting to see if they might get better, et cetera.
So we’ve exercised, I think, a pretty disciplined hand this season, particularly, because it’s maybe the most promotional season it’s ever been, at least in recent history, given the industry right now. And so our promotions are lower than what we observe by really any of our competitors. And as you can see by the numbers we are competing very robustly. I think we probably have the strongest growth in the category. And so we think we have that right balance of promotion and that healthy fundamentals in the business for the category right now. And the nice thing is, should things in the category get worse or just continue to languish, we have a strong opportunity to leverage promotions further to drive the business if necessary. But we are not chasing business to chase business.
Again, we’re trying to balance building a brand that people can love and trust and have consistency, as well as, of course, compete in real time and generate cash and generate profits, returns for investors.
Mary Fox: I think Shawn, just maybe Brian to add a little bit more. I mean, what we see as well is consumers, they love the deal and the excitement of that deal, but it doesn’t mean about the lowest price. And we’ve shared with you before nearly 40% of consumers that come into our brand. They don’t even crop up with anyone else. So we feel very good in terms of gross margin and of being maintained. We have been doing some selective price increases in places as we’ve [Technical Difficulty] particularly on our more premium fills, and we’ve seen great performance from that. So we’re constantly adjusting the leases that we have available. And as you can see from our results, gaining huge market shares, outperforming everyone else, then this algorithm has been working for us.
We saw from the Goldman Sachs report yesterday, the promotional level was high through quarter three at about 40% and at a similar level through November, and we are substantially lower. So I think, again, just [Technical Difficulty] we do feel good on the gross margins.
Brian Nagel: That’s very helpful. That’s very helpful. My follow-up question, a different topic. So I think it was Mary, I think you were talking, your comments is about the — or highlighting, I guess, the ongoing success of the relationship with Best Buy. So the question I have is, I know you’re always here as a company very guarded by your future plans. But should we expect additional newer distribution type partnerships with companies like Best Buy to help basically get the Lovesac products out there?
Mary Fox: Yes, no. Before I think, where we always want to be is best-in-class partners where, you know, consumers, it’s really on their minds we make [Technical Difficulty] purchase. So Costco’s obviously been an incredible partner for us [Technical Difficulty] particularly as we advance. We’re home meets tech, there’s no one better to partner within Best Buy. We want to be with [Technical Difficulty]. So yes, we’ve continued to expand the relationship with Best Buy and more to come. And we’ll share more, obviously, the end of this year. So we’re gaining share. They’re very happy in terms of relationships and want to continue to advance it. And then we’re always considering, Brian, in terms of any other best-in-class partners that we should be partnering with as you consider the whole ecosystem whether it be showrooms, whether it be Costco, Best Buy, you know, our own e-com platform just where should we be and where are those footsteps that are either always on our minds strategically, but very thoughtful how we do it to ensure that we really try [Technical Difficulty] way that we believe and consumers expect to find us.
Brian Nagel: Very helpful. Congrats again, happy holidays. Thanks.
Mary Fox: Yes, thank you, Brian. Thank you.
Operator: The next question is coming from the line of Matt Koranda with ROTH MKM. Please proceed with your questions.
Matt Koranda: Hey, guys. Good morning. Thanks for taking the questions. Just wanted to spin back to the Black Friday, Cyber Monday commentary, the holiday commentary in general that you had. Just wondering if you could maybe speak to sort of consumer behavior that you’re observing. One of the things we’ve seen sort of quarter-to-date from a number of folks is that consumers seem to be responding to promotions, but then kind of sitting on their hands in between those promotional periods? So I’m just curious if that’s the trend that you’re seeing? And then any willingness to sort of quantify the Black Friday, Cyber Monday growth that you said, I know you mentioned two record days and a record week, but any further quantification would be appreciated there?
