What To Expect From Lovesac's (LOVE) Q1 Earnings

Furniture company Lovesac (NASDAQ:LOVE) will be announcing earnings results tomorrow morning. Here's what to expect.

Lovesac missed analysts' revenue expectations by 5.6% last quarter, reporting revenues of $250.5 million, up 5% year on year. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' operating margin estimates.

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 decline 9.3% year on year to $128.1 million, a reversal from the 9.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.94 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 4.6% on average.

Looking at Lovesac's peers in the home furnishings segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tempur Sealy's revenues decreased 1.5% year on year, missing analysts' expectations by 1.3%, and Leggett & Platt reported a revenue decline of 9.6%, falling short of estimates by 2%. Tempur Sealy traded up 3.9% following the results while Leggett & Platt was down 26.7%.

Read our full analysis of Tempur Sealy's results here and Leggett & Platt's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the home furnishings stocks have fared somewhat better, they have not been spared, with share prices down 3.5% on average over the last month. Lovesac is down 6.7% during the same time and is heading into earnings with an average analyst price target of $31.8 (compared to the current share price of $25.06).

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