Benzinga -
- Home furnishing brand Lovesac Co (NASDAQ: LOVE) reported third-quarter FY22 sales growth of 15.5% year-on-year to $134.80 million, beating the consensus of $134.46 million.
- Comparable sales for the quarter grew 8.9% versus last year.
- Gross profit rose 8.5% Y/Y to $63.6 million, with the margin contracting 300 basis points to 47.2%.
- Total operating expenses climbed 35.1% Y/Y to $75.2 million. The operating loss for the quarter was $(11.6) million versus an operating income of $3 million last year.
- Adjusted EBITDA loss was $(8.4) million versus an adjusted EBITDA of $5.8 million last year.
- EPS loss was $(0.55) versus $0.17 profit last year, topping the consensus of $(0.76).
- Lovesac held $3.8 million in cash and equivalents as of October 30, 2022. Net cash used in operating activities for Q3 totaled $(5.6) million.
- CEO Shawn Nelson said, "We believe we are well positioned for the all-important fourth quarter holiday-season where early signs point to strong cash flow generation for the quarter. At the same time, we are planning for continued inflationary pressure on consumers and intend to maintain tight expense management and careful prioritization of critical spending to support continued growth."
- Price Action: LOVE shares traded lower by 12.41% at $19.70 on the last check Wednesday.
- Photo Via Company