Behind The Numbers – The Lovesac Company (LOVE)

The Lovesac Company (LOVE), the furniture retailer that sells Sactionals and Sacs, reported its Q4 earnings yesterday which resulted in a 20% pop in the stock:

-EPS of $2.03 vs $0.54 estimate – Big Beat
-Revenue of $196.2M vs $174.3M estimate – Beat
-Comp Sales of +50% vs 24.5% estimate – Big Beat
-Sactional Net Sales increased 56.8%
-Sacs Net Sales increased 12.6%
-Accessories Net Sales increased 81.5%

The company did cite a decrease in gross margin percentage of 200bps over the prior year period, primarily driven by an increase of approximately 480bps in total freight costs, which includes inbound and outbound freight, tariff expenses and warehousing costs. Fortunately, CFO Donna Dellomo would comment, “And the good n