Lovesac Earnings: What To Look For From LOVE

Furniture company Lovesac (NASDAQ:LOVE) will be reporting earnings tomorrow morning. Here’s what to look for.

Lovesac beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $132.6 million, down 6.1% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter.

Is Lovesac a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Lovesac’s revenue to be flat year on year at $155.1 million, slowing from the 4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.38 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lovesac has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.5% on average.

Looking at Lovesac’s peers in the home furnishings segment, some have already reported their Q2 results, giving us a hint as to what we can expect. La-Z-Boy delivered year-on-year revenue growth of 2.9%, beating analysts’ expectations by 2.8%, and Leggett & Platt reported a revenue decline of 7.6%, in line with consensus estimates. La-Z-Boy traded down 3.5% following the results while Leggett & Platt was up 1%.

Read our full analysis of La-Z-Boy’s results here and Leggett & Platt’s results here.

There has been positive sentiment among investors in the home furnishings segment, with share prices up 6.9% on average over the last month. Lovesac is down 5.9% during the same time and is heading into earnings with an average analyst price target of $33.5 (compared to the current share price of $21.41).

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