Shares of Lovesac (NASDAQ:LOVE) are on the rise in premarket trading, driven by a narrower-than-expected loss in Q2 and increased sales which offset mixed guidance for the rest of the year.
CEO Shawn Nelson commented, “Our second quarter results met our expectations as we continued to gain market share despite challenges in the industry. We are cautiously planning for the second half of the year in light of category headwinds.”
The furniture company reported a Q2 loss of $0.38 per share, wider than the previous year’s loss of $0.04 per share but beating expectations by six cents. Sales rose by 1.3%, with online sales compensating for lower showroom sales, resulting in total revenue of $156.5M, surpassing expectations by $1.43M. Gross profit margin declined to 59.0% due to increased promotional discounts and transportation costs.
For the rest of the year, Lovesac (LOVE) anticipates a Q3 loss of $0.28 to $0.50 per share on sales of $152M to $160M, falling short of expectations. For FY25, the company projects earnings of $1.01 to $1.26 per share on $700M to $735M in sales, below consensus estimates.
Lovesac (LOVE) saw a 3.5% increase prior to Thursday’s opening.
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