Lovesac Reports Q2 Loss Narrower Than Expected, Updates FY2025 Guidance

The Lovesac Company LOVE reported a second-quarter loss per share of 38 cents, beating the analyst consensus loss of 44 cents.

Quarterly sales of $156.59 million marginally missed the street view of $156.99 million.

Net sales increased 1.3% in the second quarter of fiscal 2025 compared to the prior year period, driven by the net addition of 31 new showrooms.

Gross profit remained flat in the second quarter of fiscal 2025 compared to the prior year period. Gross margin decreased 80 basis points to 59.0% of net sales in the second quarter.

The company opened ten additional showrooms and closed two showrooms in the quarter under review.

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Lovesac exited the quarter with cash and equivalents worth $72.1 million. Total merchandise inventory was $88.3 million as of August 4.

Outlook: Lovesac has updated its fiscal 2025 outlook, now projecting net sales of $700 million – $735 million versus the previous range of $700 million – $770 million (estimate: $732.2 million) and EPS of $1.01 – $1.26, revised down from $1.06 – $1.59, compared to the $1.23 estimate.

Lovesac expects third-quarter net sales to be $152 million – $160 million, below the $165.70 million estimate, and anticipates a basic loss per share of $0.28 – $0.50, compared to the $0.10 profit estimate.

Price Action: LOVE shares are trading higher by 23.3% to $25.94 at last check Thursday.

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