WING - Lovesac's Shares Up on Narrower Than Expected Q1 Loss | Benzinga
The Lovesac Company (NASDAQ: LOVE) reported better-than-expected results in first-quarter fiscal 2025 (ended May 5, 2024), with earnings and net sales beating the Zacks Consensus Estimate. However, on a year-over-year basis, net sales declined and the adjusted loss widened.
The quarter's results reflect a 14.8% decline in omnichannel comparable net sales and a 9% decline in internet sales. This downtick was reflected in the soft contributions from the company's reportable segments and was partially offset by the net addition of 35 new showrooms compared with the year-ago period.
Furthermore, an increase in outbound transportation and warehousing costs accompanied by a rise in overhead expenses, payroll, rent and selling-related expenses marred the bottom line.
Nonetheless, going forward, the company aims to focus on its omnichannel infinity flywheel, which has been designed for the life platform and advantaged supply chain. The omnichannel infinity flywheel is expected to deliver outperforming results and capitalize on the market opportunities.
Following the earnings release, Lovesac's shares gained 1.1% during trading hours on Jun 13.
Inside the Numbers
In the fiscal first quarter, the company reported an adjusted loss of 83 cents per share, narrower than the Zacks Consensus Estimate of loss of 99 cents per share. Lovesac reported an adjusted loss per share of 28 cents in the prior-year quarter.