The Lovesac Company LOVE shares are trading lower in the premarket session on Thursday.
The company reported a third-quarter loss per share of 32 cents, narrower than the street view of 35 cents loss. Quarterly sales of 149.905 million (down 2.7%) missed the analyst consensus estimate of $155.264 million.
The decrease in net sales was primarily driven by a decrease of 8.3% in omni-channel comparable net sales, partially offset by the net addition of 28 new showrooms.
During the third quarter, Lovesac opened five additional showrooms and closed one showroom.
Gross profit decreased by 0.9% to $87.6 million. Gross margin increased 110 basis points to 58.5% of net sales in the third quarter.
Adjusted EBITDA jumped 6.9% in the quarter under review to $2.7 million.
The cash and equivalents balance as of November 3, was $61.7 million as compared to $37.7 million a year ago. There was no balance on the company’s line of credit as of November 3.
Outlook: Lovesac has lowered its FY25 revenue outlook to $660 million – $680 million (estimate $712.92 million), down from the previous projection of $700 million – $735 million.
The company now expects EPS of $0.27 – $0.74 (estimate: $1.14), significantly lower than the prior view of $1.01 – $1.26.
Lovesac sees fourth quarter revenues of $221 million – $241 million (estimate $268.46 million) and earnings per share of $1.67 – $2.14 (estimate: $2.53).
Price Action: LOVE shares are trading lower by 20.4% to $29.99 premarket at last check Thursday.
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