By Dean Seal
Shares of Lovesac are moving higher amid a broad market selloff after the company said it expects higher sales in the fiscal year ahead.
The stock was up 9.3% at $17.41 in early trading. Shares have still fallen 26% since the start of the year.
The home-furnishings brand said before the bell that it expects sales of $700 million to $750 million in fiscal 2026, up from $680.6 million in the prior year. Analysts polled by FactSet had been projecting $713 million.
Earnings for the current fiscal year, which started in early February, are estimated to hit $13 million to $22 million, or 80 cents to $1.36 a share. Analysts had been forecasting 96 cents a share.
The upbeat guidance incorporates tariffs that were in place before April 2, when President Trump unleashed a new set of wide-ranging levies. He walked many of those tariffs back Wednesday, leading to a market rally that then partially unwound Thursday morning.
Lovesac also reported better sales and earnings in the fiscal fourth quarter than analysts had been expecting.
"While macro conditions were, and remain, frustratingly challenging, we are optimistic and enter fiscal 2026 in a position of strength," Chief Executive Shawn Nelson said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 10, 2025 10:15 ET (14:15 GMT)
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