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In the last reported quarter, the company’s earnings per share (EPS) of $1.87 missed the Zacks Consensus Estimate of $1.93 and the year-ago figure of 55 cents. Lovesac reported adjusted EPS of $1.65 in the prior-year quarter. Net sales missed the consensus mark by 5.8% but rose 5% year over year.
Lovesac’s earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 25.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the company's fiscal first-quarter loss per share has been stable at 99 cents in the past 30 days. In the year-ago period, the company reported a loss per share of 28 cents.
The consensus mark for net sales is pegged at $128.2 million, suggesting a decline of 9.2% from the year-ago reported figure of $141.2 million.
Key Factors to Consider
Lovesac’s business is expected to have lackluster net sales and earnings in the fiscal first quarter, owing to an industry-wide soft demand for home furnishings. Factors such as high interest rates and reduced consumer discretionary spending are likely to have dented the company's performance in the to-be-reported quarter.
Despite encouraging signs, such as easing inflation and likely interest rate cuts, consumer confidence ticked down recently. The company expects the to-be-reported quarter’s net sales to be $126-$132 million.
The company is likely to have witnessed higher operating expenses driven by an increase in selling, general and administration expenses on higher employment costs, selling-related expenses and advertising and marketing expenses. The company’s expense control initiatives are likely to have helped offset these headwinds to a great extent.
The company expects the quarter’s adjusted EBITDA loss to be between $13 million and $16 million compared with the year-over-year reported figure of $2.4 million. Net loss is likely to be in the range of $13-$16 million, wider than the year-ago reported figure of $4.2 million. Adjusted loss per share is projected to be within 84 cents to $1.03.
LOVE is actively developing new products to expand its market in the comfort-seating category and new categories. The company is focused on refining marketing strategies, strengthening the supply chain, expanding the showroom footprint, building technology capabilities and enhancing customer experience. These efforts are likely to have aided the company's performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Lovesac this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: LOVE has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +6.75% and a Zacks Rank #2.
The company's shares have surged 76.8% in the past year. EAT’s earnings beat estimates in all of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
The company’s shares have increased 31.9% in the past year. SHAK’s earnings beat estimates in all of the trailing four quarters, the average surprise being 73%.
Chuy's Holdings, Inc. (CHUY - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3.
Shares of CHUY have declined 34.8% in the past year. Its earnings beat estimates in all of the trailing four quarters, the average surprise being 18.1%.
Image: Bigstock
Here's What to Expect From Lovesac's (LOVE) Q1 Earnings
The Lovesac Company (LOVE - Free Report) is slated to report its first-quarter fiscal 2025 earnings on Jun 13, before market open.
In the last reported quarter, the company’s earnings per share (EPS) of $1.87 missed the Zacks Consensus Estimate of $1.93 and the year-ago figure of 55 cents. Lovesac reported adjusted EPS of $1.65 in the prior-year quarter. Net sales missed the consensus mark by 5.8% but rose 5% year over year.
Lovesac’s earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 25.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the company's fiscal first-quarter loss per share has been stable at 99 cents in the past 30 days. In the year-ago period, the company reported a loss per share of 28 cents.
The Lovesac Company Price and EPS Surprise
The Lovesac Company price-eps-surprise | The Lovesac Company Quote
The consensus mark for net sales is pegged at $128.2 million, suggesting a decline of 9.2% from the year-ago reported figure of $141.2 million.
Key Factors to Consider
Lovesac’s business is expected to have lackluster net sales and earnings in the fiscal first quarter, owing to an industry-wide soft demand for home furnishings. Factors such as high interest rates and reduced consumer discretionary spending are likely to have dented the company's performance in the to-be-reported quarter.
Despite encouraging signs, such as easing inflation and likely interest rate cuts, consumer confidence ticked down recently. The company expects the to-be-reported quarter’s net sales to be $126-$132 million.
The company is likely to have witnessed higher operating expenses driven by an increase in selling, general and administration expenses on higher employment costs, selling-related expenses and advertising and marketing expenses. The company’s expense control initiatives are likely to have helped offset these headwinds to a great extent.
The company expects the quarter’s adjusted EBITDA loss to be between $13 million and $16 million compared with the year-over-year reported figure of $2.4 million. Net loss is likely to be in the range of $13-$16 million, wider than the year-ago reported figure of $4.2 million. Adjusted loss per share is projected to be within 84 cents to $1.03.
LOVE is actively developing new products to expand its market in the comfort-seating category and new categories. The company is focused on refining marketing strategies, strengthening the supply chain, expanding the showroom footprint, building technology capabilities and enhancing customer experience. These efforts are likely to have aided the company's performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Lovesac this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: LOVE has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +6.75% and a Zacks Rank #2.
The company's shares have surged 76.8% in the past year. EAT’s earnings beat estimates in all of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
The company’s shares have increased 31.9% in the past year. SHAK’s earnings beat estimates in all of the trailing four quarters, the average surprise being 73%.
Chuy's Holdings, Inc. (CHUY - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3.
Shares of CHUY have declined 34.8% in the past year. Its earnings beat estimates in all of the trailing four quarters, the average surprise being 18.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.