Lovesac (NASDAQ:LOVE) Updates FY 2027 Earnings Guidance

Key Points

• FY2027 EPS guidance was updated to $0.34–$0.95 (versus the $1.53 consensus) with revenue guided to $700M–$750M and Q1 EPS guided to −$1.22 to −$0.95, leaving the EPS outlook materially below Wall Street estimates.
• Shares traded at $15.87 (market cap ~$232M) and analysts maintain a consensus "Moderate Buy" with a $26.20 target despite several recent price-target cuts, while institutional investors own roughly 91% of the stock.

Lovesac (NASDAQ:LOVE - Get Free Report) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 0.340-0.950 for the period, compared to the consensus earnings per share estimate of 1.530. The company issued revenue guidance of $700.0 million-$750.0 million, compared to the consensus revenue estimate of $736.0 million. Lovesac also updated its Q1 2027 guidance to -1.22--0.950 EPS.

Lovesac Stock Performance

Shares of NASDAQ:LOVE traded up $0.34 during midday trading on Thursday, hitting $15.87. The company's stock had a trading volume of 190,865 shares, compared to its average volume of 295,740. The business's 50 day simple moving average is $12.81 and its 200 day simple moving average is $13.96. The company has a market cap of $232.05 million, a P/E ratio of 54.73, a price-to-earnings-growth ratio of 0.63 and a beta of 2.21. Lovesac has a 12-month low of $10.33 and a 12-month high of $21.90.

Lovesac (NASDAQ:LOVE - Get Free Report) last posted its quarterly earnings results on Thursday, March 26th. The company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.19. The firm had revenue of $248.05 million for the quarter, compared to the consensus estimate of $242.77 million. Lovesac had a net margin of 0.58% and a return on equity of 2.07%. The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period last year, the firm posted $2.13 earnings per share. On average, sell-side analysts predict that Lovesac will post 0.39 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

LOVE has been the topic of several research reports. DA Davidson decreased their price target on shares of Lovesac from $24.00 to $18.00 and set a "buy" rating on the stock in a research note on Thursday, December 11th. Canaccord Genuity Group decreased their price target on shares of Lovesac from $30.00 to $24.00 and set a "buy" rating on the stock in a research note on Friday, December 12th. Maxim Group set a $26.00 price target on shares of Lovesac in a research note on Friday, December 12th. Wall Street Zen raised shares of Lovesac from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Lovesac in a research note on Friday, March 27th. Five investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $26.20.

Hedge Funds Weigh In On Lovesac

Institutional investors have recently bought and sold shares of the company. Russell Investments Group Ltd. raised its stake in Lovesac by 147.5% during the fourth quarter. Russell Investments Group Ltd. now owns 21,517 shares of the company's stock worth $317,000 after purchasing an additional 12,824 shares during the period. Squarepoint Ops LLC purchased a new position in Lovesac during the fourth quarter worth about $376,000. Barclays PLC raised its stake in Lovesac by 7.5% during the fourth quarter. Barclays PLC now owns 28,576 shares of the company's stock worth $421,000 after purchasing an additional 1,999 shares during the period. Wells Fargo & Company MN raised its stake in Lovesac by 56.5% during the fourth quarter. Wells Fargo & Company MN now owns 15,937 shares of the company's stock worth $235,000 after purchasing an additional 5,755 shares during the period. Finally, Numerai GP LLC raised its stake in Lovesac by 10.7% during the third quarter. Numerai GP LLC now owns 11,805 shares of the company's stock worth $200,000 after purchasing an additional 1,145 shares during the period. 91.32% of the stock is owned by hedge funds and other institutional investors.

About Lovesac

Lovesac, trading on NASDAQ under the symbol LOVE, is an American furniture company known for its modular seating systems and distinctive foam-filled “Sacs.” Founded in 1995 by Shawn Nelson, the company has built a reputation for innovative design that emphasizes comfort, durability and adaptability. Its core offerings include Sactionals—customizable sectional sofas assembled from individual “Sactional” cubes—and the original Lovesac Sacs, large fabric-covered bean bag chairs available in a variety of sizes and materials.

In addition to seating solutions, Lovesac has expanded into home entertainment products with the introduction of the Stage, a modular soundbar system designed to integrate seamlessly with Sactionals.

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