Lovesac Company Intrinsic Value Calculation – Lovesac Beats Earnings and Revenue Estimates Despite GAAP EPS of -$0.15
December 11, 2023
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Lovesac Company ($NASDAQ:LOVE), Inc. is a home furnishings brand specializing in furniture and accessories for the home. Recently, the company reported its financial results for the first quarter of 2021, which surpassed analyst estimates. Although the company recorded a GAAP EPS of -$0.15, it exceeded expectations by $0.15. The revenue of $154.04M was higher than the projected figure of $0.23M. The company’s sales grew by 8%, driven by strong consumer demand for its furniture and accessories. The company’s growth was further supported by its successful e-commerce initiatives.
The company’s omnichannel approach has allowed it to offer consumers an unmatched shopping experience, regardless of whether they shop online or in-store. Overall, Lovesac Company’s first quarter showed impressive results, despite recording a GAAP EPS of -$0.15. Its revenue and same-store sales exceeded expectations, and its e-commerce initiatives have enabled the company to capture a larger share of the market. With such positive performance in the first quarter, the future looks bright for Lovesac Company.
Earnings
In its earnings report for the Fiscal Year 2024 Q2 ending on July 31, 2021, LOVESAC COMPANY achieved impressive results despite a GAAP EPS of -$0.15. Total revenue for the period was reported at 102.45M USD, a 31.0% decrease from the prior year, while net income saw an increase of 18.7% to 8.45M USD. Over the past 3 years, total revenue for LOVESAC COMPANY has grown substantially from 102.45M USD to 154.53M USD. These results demonstrate the resilient nature of the company’s business model despite the challenging economic environment.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lovesac Company. More…
| Total Revenues | Net Income | Net Margin |
| 688.61 | 20.88 | 3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lovesac Company. More…
| Operations | Investing | Financing |
| 67.13 | -29.47 | -3.75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lovesac Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 436.26 | 250.76 | 11.98 |
Key Ratios Snapshot
Some of the financial key ratios for Lovesac Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.5% | – | 4.1% |
| FCF Margin | ROE | ROA |
| 5.5% | 9.5% | 4.0% |
Price History
On Wednesday, LOVESAC COMPANY reported their financial results for the first quarter of 2021, beating analysts’ estimates on earnings and revenue. Despite a GAAP (Generally Accepted Accounting Principles) earnings per share of -$0.15, the stock soared by 12.3% from its previous closing price of $21.0 to open at $21.7 and close at $23.6. Despite the strong financial results, the GAAP EPS was -$0.15 due to an increase in SG&A expenses related to marketing and supply chain investments necessary to support the growth in e-commerce sales. Nonetheless, the stock attracted attention from investors as it opened and closed higher than expected. Live Quote…
Analysis – Lovesac Company Intrinsic Value Calculation
At GoodWhale, we have performed an analysis of the fundamentals of LOVESAC COMPANY. Our proprietary Valuation Line has led us to determine that the fair value of LOVESAC COMPANY share is around $58.2. However, LOVESAC COMPANY stock is currently trading at $23.6, indicating that it is undervalued by 59.5%. This presents a great opportunity for investors to take advantage of the share’s discounted price and buy a quality stock at a bargain. More…
Peers
The Lovesac Co has been facing fierce competition from a number of leading furniture companies, including Bassett Furniture Industries Inc, Nobia AB, and La-Z-Boy Inc. All of these companies have established reputations in the furniture industry, and have been vying for market share with innovative products, aggressive marketing campaigns, and competitive pricing. As a result, The Lovesac Co has been forced to stay ahead of the curve and develop new strategies to differentiate itself from its competitors.
– Bassett Furniture Industries Inc ($NASDAQ:BSET)
Bassett Furniture Industries Inc is a leading manufacturer and marketer of branded home furnishings. It designs, manufactures, sources, markets, and retails furniture products for the bedroom, dining room, and home office. As of 2022, Bassett Furniture Industries Inc has a market cap of 162.33M, making it one of the larger companies in the sector. Its Return on Equity (ROE) is 9.9%, which is a good indicator of how efficiently the company is using its invested capital. By leveraging its strong brand recognition and product offerings, Bassett Furniture Industries Inc has been able to consistently generate returns for its shareholders.
– Nobia AB ($LTS:0GW0)
Nobia AB is a Swedish-based home improvement retailer that specializes in kitchen, bathroom and other interior products. With a market cap of 3.77B as of 2022, the company is one of the leading companies in the home improvement industry. Furthermore, Nobia AB has a return on equity of 7.2%, indicating that it is generating an adequate return on its invested capital. The company’s strong performance is a testament to its dedication to providing superior products and services to its customers.
– La-Z-Boy Inc ($NYSE:LZB)
La-Z-Boy Inc is a leading furniture manufacturer and retailer that offers a variety of home furnishings and accessories for both residential and commercial purposes. The company has a market capitalization of 1.05 billion dollars as of 2022 and has a Return on Equity (ROE) of 17.04%. The company’s market cap indicates that its stock is highly valued by the public, and its ROE suggests that it is achieving a healthy level of profitability. La-Z-Boy Inc has experienced strong growth in recent years and continues to be a dominant player in the furniture industry.
Summary
Lovesac Company is a leading manufacturer and retailer of modular furniture, offering a unique range of products and services. This positive report caused a rise in the company’s stock price that same day. As investors assess their portfolios, they should look to Lovesac’s financial performance for indications of future stock performance and trends.
The company’s financials offer insight into its ability to demonstrate long-term sustainable growth, profitability, and liquidity, as well as its ability to expand its market reach and develop new products. Furthermore, investors should also consider the company’s competitive landscape, its strategic alliances and partnerships, and other factors in order to make a sound investing decision.
