Lovesac Lower Even After Stronger-Than-Expected Earnings

Lovesac's earnings more than doubled the Wall Street consensus estimate. The shares fell, likely on profit-taking.
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Lovesac  (LOVE) - Get Report shares fell Wednesday, likely on profit-taking, after the furniture company reported stronger-than-expected earnings for the latest quarter.

In the fiscal 2021 fourth quarter ended Jan. 31, profit totaled $21.7 million, or $1.37 a share, more than triple the $5.4 million, or 37 cents, of the year-earlier quarter. The Bloomberg analyst consensus called for EPS of 58 cents in the latest quarter.

Sales registered $129.7 million, 40% up from $92.2 million a year earlier. Analysts had forecast $116 million for the latest quarter.

The Stamford, Conn., company's shares recently traded at $59.02, down 10%. But the stock is still up 66% over the past six months amid strong furniture demand during the pandemic.

Chief Executive Shawn Nelson pointed to fourth-quarter comparable-sales growth of 45%, gross-margin expansion of 890 basis points and a more than threefold increase in adjusted Ebitda to $25.9 million.

In other furniture news, Herman Miller MLHR recently appointed top gamer and Twitch streamer Tim “TimtheTatman” Betar the office furniture company's first global brand ambassador.

Timothy John Betar, better known by his online alias, is an American Twitch streamer and internet personality. Betar has 6.4 million followers on Amazon’s  (AMZN) - Get Report Twitch, 3.3 million on Facebook's  (FB) - Get Report Instagram and 2.4 million on Twitter.  (TWTR) - Get Report

Meanwhile, “This is a great time of year if you want to update your office furniture or create your own home office,” writes TheStreet.com’s Jeanette Pavini. “It seems once Tax Day passes, you will start to see the deals on office furniture popping up.”