Shares of Lovesac saw a boost after the well-known sofa manufacturer announced improved sales and a smaller loss for the third quarter. The stock experienced an 11% increase and traded at $23.27 recently, with a year-to-date increase of around 5%.
According to Chief Executive Shawn Nelson, Lovesac’s sales surpassed the performance of the wider furniture industry, which he estimated to have declined during the quarter. Lovesac’s third-quarter sales reached approximately $154 million, surpassing the analyst’s expectation of $153.8 million.
As a result, the company has revised its full-year sales forecast to a range of $710 million to $720 million, with a $10 million reduction on the higher end of the range.
Lovesac reported a narrowed loss of $2.3 million, or 15 cents per share, compared to a loss of $7.4 million, or 48 cents per share, during the same period last year. Looking ahead, the company plans to achieve earnings of $1.77 to $2.02 per share for the fourth quarter, which falls within the analysts’ projected estimate of $1.98 per share.
