Furniture company Lovesac (NASDAQ: LOVE) will be announcing earnings results tomorrow morning. Here’s what investors should know.
Lovesac beat analysts’ revenue expectations by 4.9% last quarter, reporting revenues of $241.5 million, down 3.6% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and full-year EBITDA guidance exceeding analysts’ expectations.
Is Lovesac a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lovesac’s revenue to grow 82.1% year on year to $137 million, a reversal from the 6.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.75 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lovesac has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Lovesac’s peers in the home furnishings segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Purple’s revenues decreased 13.2% year on year, meeting analysts’ expectations, and Leggett & Platt reported a revenue decline of 6.8%, in line with consensus estimates. Purple traded up 7.8% following the results while Leggett & Platt was also up 32%.
Read our full analysis of Purple’s results here and Leggett & Platt’s results here.
Investors in the home furnishings segment have had steady hands going into earnings, with share prices flat over the last month. Lovesac is down 1.8% during the same time and is heading into earnings with an average analyst price target of $31 (compared to the current share price of $20.95).
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