Shares of furniture retailer Lovesac Co. (LOVE) plummeted by nearly 28% on Thursday after the company reported disappointing fiscal third-quarter results and lowered its full-year guidance, citing persistent headwinds in the home furnishing category.
For the third quarter ended November 3, 2024, Lovesac reported net sales of $149.9 million, down 2.7% year-over-year and missing analysts' expectations of $155.3 million. The decline was driven by an 8.3% drop in omni-channel comparable net sales, partially offset by the net addition of 28 new showrooms.
The company also lowered its outlook for fiscal 2025, now expecting net sales in the range of $660 million to $680 million, down from its previous guidance of $700 million to $735 million. Lovesac cut its earnings per share guidance to $0.27 to $0.74, significantly lower than the previous range of $1.01 to $1.26.
Lovesac CEO Shawn Nelson attributed the weaker performance to "near-term headwinds for our category" that persisted through the pre-election period, indicating softness in consumer demand for home furnishings around the election season.
Despite the disappointing results, Lovesac claimed to have gained market share during the quarter as the broader home furnishing category saw even steeper declines. The company also highlighted the successful launch of its new recliner product, which received positive customer feedback.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.