Lovesac shares fell after the company lowered its 2025 outlook and posted a third-quarter loss nearly double last year's.
The stock dropped about a quarter of its value to $28.19 on Thursday, losing most of the gains shares made this year.
The furniture retailer, known for its bean-bag chairs, posted a loss of $4.9 million, or 32 cents a share, for the 13 weeks ended Nov. 3, compared with a loss of $2.3 million, or 15 cents a share, during the same period last year.
Revenue fell 2.7% to $149.9 million, below analyst expectations of $155.3 million, according to FactSet.
Lovesac also lowered its outlook for 2025. It is now guiding for revenue between $660 million and $680 million, below its previous guidance of $700 million to $735 million. It expects a profit between $4.5 million and $12.5 million, down from $17 million to $21 million.
For the current fourth quarter, Lovesac expects revenue between $221 million and $241 million and a profit of $28 million to $36 million. Analysts polled by FactSet expect $268.5 in revenue and a $43.4 million profit.
Internet sales fell nearly in half to 12.1% compared with 2023. Operating expenses increased by about $3 million, more than doubling total operating losses.
"Near-term headwinds for our category clearly persisted through the pre-election period," said Chief Executive Shawn Nelson.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 12, 2024 12:13 ET (17:13 GMT)
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