Lovesac Lowers Full-Year Sales Outlook by $10M, Cuts EPS Guidance Amid Weak Furniture Market
LOVE sits 42% above its 52-week low of $10.33.
Summary
Lovesac has lowered the high end of its full-year sales outlook by $10 million to a range of $700 million to $740 million, and reduced its EPS guidance ceiling to $0.81 from $0.95. This update from Dow Jones Newswires elaborates on the tempered guidance initially disclosed in the 8-K and 10-Q filings earlier today, which also reported flat Q1 net sales and a wider net loss of $11.1 million. CEO Shawn Nelson cited a "pressured and highly promotional environment" in the furniture market as the reason for the tempered outlook. The company also reported a significant $44.8 million reduction in cash in its Q1 10-Q, indicating substantial operating cash burn. Lovesac expects a Q2 loss of 20-48 cents per share on sales of $157 million to $166 million, which will be a key indicator of market conditions.
At the time of this announcement, LOVE was trading at $14.66 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $216.7M. The 52-week trading range was $10.33 to $21.15. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.