Furniture company Lovesac (NASDAQ: LOVE) will be announcing earnings results this Thursday before market hours. Here’s what investors should know.
Lovesac beat analysts’ revenue expectations last quarter, reporting revenues of $138.2 million, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Lovesac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lovesac’s revenue to be flat year on year, slowing from the 2.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lovesac has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lovesac’s peers in the consumer discretionary - home furnishings segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mohawk Industries delivered year-on-year revenue growth of 6.8%, beating analysts’ expectations by 7.2%, and Purple reported a revenue decline of 6.5%, falling short of estimates by 4.1%. Mohawk Industries traded up 3% following the results while Purple was down 20.3%.
Read our full analysis of Mohawk Industries’s results here and Purple’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the consumer discretionary - home furnishings stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.3% on average over the last month. Lovesac is down 7.2% during the same time and is heading into earnings with an average analyst price target of $24.17 (compared to the current share price of $16.05).
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