Overview
U.S. home furniture brand's Q4 sales rose 2.7% yr/yr, beating analyst expectations
Q4 adjusted EBITDA missed consensus, net income declined yr/yr
Company announced new $40 mln share repurchase authorization
Outlook
Lovesac sees FY27 net sales between $700 mln and $750 mln
Company expects FY27 net income of $5 mln to $14 mln
Lovesac forecasts Q1 net sales between $133 mln and $139 mln
Result Drivers
SHOWROOM EXPANSION - Q4 sales growth was mainly attributed to the net addition of 21 new showrooms and a slight increase in omni-channel comparable sales
HIGHER TRANSPORTATION AND TARIFF COSTS - Gross margin declined due to increased inbound transportation and tariff costs, partially offset by product margin improvements from price increases and cost reductions
INCREASED SG&A COSTS - SG&A expenses rose in Q4 due to higher incentive compensation, new product innovation costs, and other overhead
Company press release: ID:nGNX6zqr3Q
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Beat | $248 mln | $242.78 mln (6 Analysts) |
Q4 EPS | $2.19 | ||
Q4 Net Income | $32.10 mln | ||
Q4 Adjusted EBITDA | Miss | $49.60 mln | $51.92 mln (6 Analysts) |
Q4 Gross Margin | 58.10% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "buy"
Wall Street's median 12-month price target for Lovesac Co is $25.00, about 121.4% above its March 25 closing price of $11.29
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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