Lovesac Q1 sales flat but slightly beat estimates

Lovesac Co

Yesterday 12:11

Overview
U.S. furniture retailer's fiscal Q1 net sales were flat, slightly beating analyst expectations
Fiscal Q1 adjusted EBITDA loss narrowed and beat analyst expectations
Gross margin declined due to higher transportation and tariff costs, partly offset by price increases

Outlook
Lovesac sees full-year net sales between $700 mln and $740 mln
Company expects Q2 net sales between $157 mln and $166 mln

Result Drivers
SALES CHANNEL MIX - Flat net sales driven by unchanged showroom sales, higher internet sales, and decline in other channels due to closure of Best Buy shop-in-shop locations
HIGHER TRANSPORTATION AND TARIFF COSTS - Gross margin declined due to increased inbound transportation and tariff costs, as well as higher outbound transportation and warehousing expenses
PRICE INCREASES AND COST REDUCTION INITIATIVES - Product margin improved from price increases and cost reduction efforts, partly offset by higher promotional discounting

Company press release: ID:nGNX8ggRPK

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Beat*
$138.20 mln
$137.36 mln (6 Analysts)
Q1 EPS
 
-$0.76
 
Q1 Net Income
 
-$11.10 mln
 
Q1 Adjusted EBITDA
Beat
-$10.50 mln
-$14.01 mln (6 Analysts)
Q1 Gross Margin
 
52.10%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "buy"
Wall Street's median 12-month price target for Lovesac Co is $23.00, about 39.6% above its June 10 closing price of $16.48
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)