Lovesac partners with Habitat for Humanity for home comfort

STAMFORD, Conn. - The Lovesac Company (NASDAQ: NASDAQ:LOVE), known for its high-quality, innovative furniture, has announced a partnership with Habitat for Humanity, a global nonprofit focused on affordable housing. The company, which generated nearly $690 million in revenue over the last twelve months and maintains a healthy 58% gross profit margin according to InvestingPro data, continues to demonstrate strong market presence. This collaboration aims to provide sustainable comfort in homes, particularly for families affected by disasters such as Hurricane Helene in North Carolina and the wildfires in Los Angeles.

Lovesac has previously donated over $600,000 in products to Habitat, which are sold in Habitat’s ReStores to fund housing projects. This year, the company has committed to a minimum of $150,000 in additional product donations. With a current ratio of 1.49, InvestingPro analysis shows the company maintains strong liquidity to support such initiatives while meeting its operational obligations. Moreover, Lovesac has pledged over $400,000 in furniture to ReStores in disaster-stricken areas to aid in long-term recovery.

The company’s nearly 2,000 employees will participate in Volunteer Build Days, working on construction and refurbishment of homes with local Habitat affiliates. Lovesac showrooms will also collaborate with ReStores through donations and volunteer efforts.

Shawn Nelson, Lovesac Founder and CEO, emphasized the shared values of sustainability and comfort, and the importance of the partnership in helping communities rebuild. Charlita Stephens-Walker, vice president of corporate partnerships and cause marketing at Habitat for Humanity International, expressed excitement about the new partnership level and the support it offers to community improvement goals.

Lovesac’s "Designed for Life" philosophy underpins a dedication to sustainable and adaptable furniture solutions. The brand has a history of donating products to Habitat ReStores after photoshoots and events, extending the life of these items in alignment with their mission.

For more information on Lovesac’s contributions or to get involved, interested parties can visit the company’s website. The Lovesac Company is publicly traded on NASDAQ under the ticker LOVE. According to InvestingPro analysis, the company’s current market capitalization stands at $333 million, with analysts maintaining a strong buy consensus. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report, offering detailed analysis of the company’s financial health and growth prospects.

This news is based on a press release statement.

In other recent news, The Lovesac Company reported its third-quarter earnings for fiscal year 2024, revealing a net loss of $4.9 million or $0.32 per share, which fell short of analysts’ expectations of a $0.28 loss per share. Revenue for the quarter reached $149.9 million, missing the $155.26 million forecast and marking a 2.7% year-over-year decline. Despite these results, DA Davidson maintained a Buy rating on Lovesac, though it reduced the price target from $44 to $35, citing an anticipated improvement in the housing market and new product launches as potential growth drivers. Meanwhile, Canaccord Genuity also retained a Buy rating with a $45 price target, acknowledging the mixed third-quarter results but noting profitability exceeded estimates due to expense discipline.

Lovesac’s revenue shortfall was attributed to a challenging promotional environment and increased conversion times, as consumers delayed purchases amid holiday spending. The company launched several new products, including the Ultimate Power Recliner, contributing to repeat business and attracting new customers. Despite the quarter’s challenges, Lovesac experienced double-digit growth in customer quotes, although actual sales conversions lagged. The company remains committed to capping discounts at 30%, aiming to protect profitability in a competitive market. Looking ahead, Lovesac projects fiscal 2025 net sales between $660 million and $680 million, with adjusted EBITDA guidance ranging from $37.5 million to $48.5 million.

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