LOVE - Lovesac stock gains on lighter than expected loss
2023-06-07 07:18:53 ET
Lovesac ( NASDAQ: LOVE ) shares surged nearly 10% before the bell on Wednesday after beating Q1 earnings expectations and touting strong comparable sales growth.
For the first quarter, the Connecticut-based furniture company reported a $0.28 per share loss, $0.13 better than analysts had anticipated. Meanwhile, a 9.1% jump in revenue to $141.19M came in $7.46M better than consensus expectations as comparable sales surged 15.1% year over year.
“We are very pleased with our first quarter performance, highlights of which included 9% and 15% increases in total sales and comparable sales, respectively, despite dampened consumer spending and higher interest rates. Lovesac’s relative outperformance reflects success executing our highly differentiated, customer-centric business model, the loyalty commanded by our Designed For Life product platforms, and our stellar operational platform,” CEO Shawn Nelson said. “While we expect unfavorable macro-economic conditions to continue in the coming quarters, Lovesac ( LOVE ) continues to operate from a position of strength with a debt free balance sheet and a proven track record of cost discipline and rigor.”
Management expects net sales in a range between $700M and $740M for the full year and between $1.83 and $2.24 in earnings per share over the same span. Consensus estimates for EPS and revenue stood at $2.11 and $707.36M, respectively.
For the second quarter, management anticipates between $149M and $151M and a loss per share between $0.12 and $0.16. Analysts had forecast a $0.12 in earnings per share on 151.3M for the quarter.
Shares of Lovesac ( LOVE ) lifted 9.84% higher in premarket action on Wednesday.
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Lovesac stock gains on lighter than expected loss