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Lovesac Earnings: What To Look For From LOVE

StockStory - Wed Apr 10, 2:01AM CDT

LOVE Cover Image

Furniture company Lovesac (NASDAQ:LOVE) will be reporting earnings tomorrow before the bell. Here's what investors should know.

Last quarter Lovesac reported revenues of $154 million, up 14.3% year on year, in line with analyst expectations. It was a good quarter for the company, with a decent beat of analysts' EPS estimates.

Is Lovesac buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Lovesac's revenue to grow 10.7% year on year to $264.4 million, slowing down from the 21.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.90 per share.

Lovesac Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.9%.

Looking at Lovesac's peers in the consumer discretionary segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Strategic Education delivered top-line growth of 12.1% year on year, beating analyst estimates by 1.8% and Accel Entertainment reported revenues up 6.8% year on year, exceeding estimates by 4.2%. Strategic Education traded up .1% on the results, and Accel Entertainment was flat on the results.

Read our full analysis of Strategic Education's results here and Accel Entertainment's results here.

Investors in the consumer discretionary segment have had steady hands going into the earnings, with the stocks up on average 0.3% over the last month. Lovesac is up 12% during the same time, and is heading into the earnings with analyst price target of $41.4, compared to share price of $24.7.

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