- Home furnishing brand Lovesac Co LOVE shares are up over 16% on Tuesday morning following better-than-expected Q4 results.
- LOVE reported fourth-quarter FY23 sales growth of 21.7% year-on-year to $238.8 million, beating the consensus of $217.60 million. Comparable sales for the quarter grew 16.2% versus last year.
- Gross profit rose 23.4% Y/Y to $135.2 million, with the margin expanding 70 basis points to 56.6%.
- Total operating expenses climbed 13.7% Y/Y to $97.1 million. The operating income for the quarter was $38.1 million, and the operating margin expanded 360 basis points to 15.9%.
- Adjusted EBITDA increased 51% Y/Y to $48.3 million. EPS of $1.74 topped the consensus of $1.72.
- Lovesac held $43.5 million in cash and equivalents as of January 29, 2023. Net cash provided by operating activities during Q4 totaled $47.9 million.
- Outlook: Lovesac sees Q1 EPS of $(0.37) - $(0.36) versus the Street view of $(0.06). Sales of $133 million - $136 million against the estimate of $134.3 million.
- It expects FY24 EPS of $1.83 - $2.24 versus the estimate of $2.10; Sales of $700 million - $740 million, above the estimate of $692.31 million.
- Price Action: LOVE shares traded higher by 16.71% at $28.01 on the last check Tuesday.
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