Furniture company Lovesac (NASDAQ:LOVE) will be announcing earnings results this Thursday before market open. Here’s what to look for.
Lovesac beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $138.4 million, up 4.3% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
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 2.4% year on year to $160.3 million, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.52 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 Q2 results, giving us a hint as to what we can expect. Purple’s revenues decreased 12.6% year on year, meeting analysts’ expectations, and Somnigroup reported revenues up 52.5%, falling short of estimates by 0.6%. Purple traded down 4% following the results while Somnigroup was up 1.9%.
Read our full analysis of Purple’s results here and Somnigroup’s results here.
There has been positive sentiment among investors in the home furnishings segment, with share prices up 12.4% on average over the last month. Lovesac is up 6.6% during the same time and is heading into earnings with an average analyst price target of $30.17 (compared to the current share price of $18.92).
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