Lovesac (LOVE) Q4 Earnings Report: Key Things to Watch

Lovesac, the furniture company trading under the ticker symbol LOVE on the NASDAQ, is set to release its fourth-quarter earnings report tomorrow. Last quarter, Lovesac fell short of revenue projections by 3.5%, posting revenues of $149.9 million, down 2.7% compared to the previous year. The quarter was characterized by a slower performance, with the company’s full-year EBITDA guidance failing to meet analysts’ expectations.

Analysts are forecasting a further downturn in Lovesac’s revenue for this quarter, anticipating an 8.1% decline year on year to $230.2 million, a significant reversal from the 5% growth reported in the corresponding quarter of the previous year. Adjusted earnings are anticipated to be $1.85 per share for the quarter.

Market analysts have largely maintained their estimates over the past month, indicating their belief that Lovesac will stay on a steady trajectory leading up to the earnings release. Notably, Lovesac has fallen short of Wall Street’s revenue forecasts twice within the last two years.

Examining Lovesac’s industry peers within the consumer discretionary sector, some companies have already disclosed their Q4 results, offering insights into potential outcomes. Purple experienced an 11.6% decline in revenues year on year, meeting analysts’ expectations, while The Real Brokerage reported a 93.4% revenue increase, surpassing estimates by 16.8%. Following these results, Purple shares surged by 35.6%, whereas The Real Brokerage shares declined by 8.9%.

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