Lovesac stock soars 16% as Q4 earnings top estimates

Published 10/04/2025, 14:12
© Reuters.

Investing.com -- On Thursday, The Lovesac Company (NASDAQ:LOVE), the furniture retailer, reported fourth quarter earnings and revenue that beat analyst expectations.

The company's stock surged over 16% in premarket trading after the release.

The company posted Q4 adjusted earnings per share of $2.13, surpassing the consensus estimate of $1.87. Revenue for the quarter came in at $241.5 million, topping expectations of $230.33 million.

Compared to the same quarter last year, net sales decreased 3.6% to $241.5 million. However, net income rose 14.1% YoY to $35.3 million.

"After a slow start to the holiday selling season, strong execution by our teams dramatically improved conversion of customer quotes to sales throughout the remainder of the fourth quarter," said CEO Shawn Nelson.

For the full fiscal year 2025, Lovesac reported net sales of $680.6 million, down 2.8% from the previous year. Net income for the year fell 51.6% to $11.6 million.

Looking ahead, the company provided guidance for fiscal 2026, projecting full-year revenue between $700 million and $750 million, compared to analyst estimates of $713 million. Lovesac expects adjusted EPS in the range of $0.80 to $1.36, versus the $0.98 consensus.

The strong quarterly results and upbeat outlook drove the stock's sharp rise in early trading. Investors appear encouraged by Lovesac's ability to grow profits despite challenging macroeconomic conditions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.