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In the last reported quarter, the company’s loss per share of 15 cents was narrower than the Zacks Consensus Estimate of 31 cents and the year-ago figure of 55 cents. On the other hand, the net sales met the consensus mark and grew 14.1% year over year.
Lovesac’s earnings topped the consensus mark in the trailing four quarters, the average surprise being 26.4%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the company's fiscal fourth-quarter earnings per share (EPS) has remained stable at $1.93 over the past 60 days. This reflects year-over-year growth of 10.9% from a year-ago reported EPS of $1.74.
The consensus mark for net sales is pegged at $265.86 million, suggesting growth of 11.3% from the year-ago reported figure of $238.85 million.
Key Factors to Consider
The to-be-reported quarter’s net sales of Lovesac are likely to have increased year over year attributable to solid growth in its Showroom and Internet sales channels. The company intends to focus on proactive investments in new products to spark consumer demand as it has been facing soft consumer spending, which is expected to continue in the fourth quarter of fiscal 2024.
The company expects the to-be-reported quarter’s net sales to be $260-$270 million.
For the fiscal fourth quarter, the Zacks Consensus Estimate for net sales in Showroom and Internet channels is pegged at $165 million and $84 million, indicating an increase from year-over-year reported values of $142 million and $79 million, respectively. The same for Other channel is pegged at $16.58 million, indicating a decrease from year-over-year reported values of $20.52 million.
Furthermore, the quarter’s comparable sales are expected to grow on the back of higher point-of-sales transactions with lower promotional discounting accompanied by the addition of new retail showrooms.
Lovesac is likely to have witnessed higher operating expenses driven by an increase in selling, general and administration expenses on the back of an increase in employment costs, overhead expenses, selling-related expenses and rent. However, the company’s expense control initiatives are likely to have helped offset these headwinds to a great extent.
The company expects the quarter’s adjusted EBITDA to be between $48 and $56 million compared with the year-over-year reported figure of $48.3 million. Net income is likely to be in the range of $29 million-$33 million, up from $27.6 million reported in the prior year.
Adjusted EPS is projected to be within $1.77-$2.02.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Lovesac this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: LOVE has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
EAT’s earnings for the quarter under review are expected to decrease 7.3%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 212.7%.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank of 3.
DRI is expected to register 1.6% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 3%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of 3.
CMG’s earnings for the to-be-reported quarter are expected to increase 8.3%. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 9.1%.
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Here's What to Expect From Lovesac's (LOVE) Q4 Earnings
The Lovesac Company (LOVE - Free Report) is slated to report its fourth-quarter fiscal 2024 earnings on Apr 11, before market open.
In the last reported quarter, the company’s loss per share of 15 cents was narrower than the Zacks Consensus Estimate of 31 cents and the year-ago figure of 55 cents. On the other hand, the net sales met the consensus mark and grew 14.1% year over year.
Lovesac’s earnings topped the consensus mark in the trailing four quarters, the average surprise being 26.4%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the company's fiscal fourth-quarter earnings per share (EPS) has remained stable at $1.93 over the past 60 days. This reflects year-over-year growth of 10.9% from a year-ago reported EPS of $1.74.
The Lovesac Company Price and EPS Surprise
The Lovesac Company price-eps-surprise | The Lovesac Company Quote
The consensus mark for net sales is pegged at $265.86 million, suggesting growth of 11.3% from the year-ago reported figure of $238.85 million.
Key Factors to Consider
The to-be-reported quarter’s net sales of Lovesac are likely to have increased year over year attributable to solid growth in its Showroom and Internet sales channels. The company intends to focus on proactive investments in new products to spark consumer demand as it has been facing soft consumer spending, which is expected to continue in the fourth quarter of fiscal 2024.
The company expects the to-be-reported quarter’s net sales to be $260-$270 million.
For the fiscal fourth quarter, the Zacks Consensus Estimate for net sales in Showroom and Internet channels is pegged at $165 million and $84 million, indicating an increase from year-over-year reported values of $142 million and $79 million, respectively. The same for Other channel is pegged at $16.58 million, indicating a decrease from year-over-year reported values of $20.52 million.
Furthermore, the quarter’s comparable sales are expected to grow on the back of higher point-of-sales transactions with lower promotional discounting accompanied by the addition of new retail showrooms.
Lovesac is likely to have witnessed higher operating expenses driven by an increase in selling, general and administration expenses on the back of an increase in employment costs, overhead expenses, selling-related expenses and rent. However, the company’s expense control initiatives are likely to have helped offset these headwinds to a great extent.
The company expects the quarter’s adjusted EBITDA to be between $48 and $56 million compared with the year-over-year reported figure of $48.3 million. Net income is likely to be in the range of $29 million-$33 million, up from $27.6 million reported in the prior year.
Adjusted EPS is projected to be within $1.77-$2.02.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Lovesac this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: LOVE has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
EAT’s earnings for the quarter under review are expected to decrease 7.3%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 212.7%.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank of 3.
DRI is expected to register 1.6% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 3%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of 3.
CMG’s earnings for the to-be-reported quarter are expected to increase 8.3%. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 9.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.