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Investing.com - DA Davidson has reiterated its Buy rating on The Lovesac Co. (NASDAQ:LOVE) with a price target of $24.00 following the company’s second-quarter earnings results. According to InvestingPro data, analysts’ targets range from $24 to $38, suggesting significant upside potential from the current price of $17.67. The stock has experienced a sharp 13.4% decline over the past week.
The furniture retailer reported better-than-expected performance on both top and bottom lines, with comparable sales remaining positive for the second consecutive quarter. Sales figures landed near the midpoint of the company’s projected range. The company maintains healthy profitability with a robust gross margin of 57.7% over the last twelve months.
Lovesac delivered surprisingly positive EBITDA results, primarily driven by gross margins that exceeded expectations. This performance came despite some challenges in the overall furniture retail sector.
The company has narrowed its full-year revenue guidance while maintaining the same midpoint, which DA Davidson notes remains "well above" the current consensus estimates among analysts.
Despite the positive sales outlook, Lovesac reduced its full-year EBITDA forecast, which DA Davidson identified as a "blemish" in an otherwise strong report, though the revised guidance still aligns with consensus expectations.
In other recent news, Lovesac reported its financial results for the second quarter of 2025, showing a mixed performance. The company experienced a larger-than-expected loss per share, posting an EPS of -$0.45 compared to the forecasted -$0.27. However, revenue slightly exceeded expectations, reaching $160.5 million against the anticipated $159.97 million. Despite these results, Canaccord Genuity has maintained its Buy rating for Lovesac with a price target of $30.00, citing positive growth for the second consecutive quarter. The retailer’s profitability surpassed the upper end of its guidance range, even amid an estimated 4% decline in overall furniture spending. July was noted as the strongest month for performance within the quarter. These developments reflect a mixed outlook for the company as it navigates current market conditions.
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