[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) The Lovesac Company's Q1 FY26 performance, strategic initiatives, and market position [First Quarter Fiscal 2026 Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Highlights) The Lovesac Company reported a 4.3% increase in Q1 FY26 net sales to $138.4 million, driven by omni-channel comparable net sales growth and new showroom additions, with operating and net losses improving year-over-year despite a decrease in gross margin Key Financial Measures for Q1 FY26 vs. Q1 FY25 | Metric | Q1 FY26 (May 4, 2025) (million USD) | Q1 FY25 (May 5, 2024) (million USD) | % Inc (Dec) | | :--------------------------------- | :---------------------------------- | :---------------------------------- | :---------- | | Net sales | $138.4 | $132.6 | 4.3% | | Gross profit | $74.4 | $72.0 | 3.2% | | Gross margin | 53.7% | 54.3% | (60) bps | | Total operating expenses | $89.3 | $89.9 | (0.6%) | | SG&A as a % of Net Sales | 48.5% | 51.6% | (310) bps | | Advertising & marketing as a % of Net Sales | 13.4% | 13.6% | (20) bps | | Net loss | $(10.8) | $(13.0) | 16.4% | | Diluted net loss per common share | $(0.73) | $(0.83) | 12.0% | | Adjusted EBITDA | $(8.4) | $(10.3) | 17.7% | | Omni-channel Comparable Net Sales | 2.8% | (14.8)% | - | | Internet Sales | (8.9)% | (9.0)% | - | | Ending Showroom Count | 267 | 246 | - | - Net sales increased by **$5.8 million**, or **4.3%**, in the first quarter of fiscal 2026 compared to the prior year period, primarily driven by an increase of **2.8%** in omni-channel comparable net sales and the net addition of **21 new showrooms**[7](index=7&type=chunk) [CEO Commentary & Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Initiatives) CEO Shawn Nelson highlighted Q1 performance aligning with expectations, driven by investments in core capabilities and product innovation, with the company gaining market share despite category headwinds and launching its third "Designed For Life" platform, EverCouch, effectively doubling its total addressable market - The company delivered topline growth and leveraged operating expenses, benefiting from previous investments in core capabilities to bolster its infinity flywheel and accelerate product innovation[2](index=2&type=chunk) - Lovesac achieved market share gains in Q1 FY26 despite persistent category headwinds and an evolving macroeconomic backdrop, reinforcing its unique competitive advantages[2](index=2&type=chunk) - The launch of the third Designed For Life Platform, EverCouch, expands into the armchair, loveseat, and sofa category, effectively doubling the company's total addressable market[2](index=2&type=chunk) [Detailed Financial Performance - First Quarter Fiscal 2026](index=1&type=section&id=Detailed%20Financial%20Performance%20-%20First%20Quarter%20Fiscal%202026) A comprehensive review of Lovesac's Q1 FY26 financial results, including sales, profitability, and balance sheet changes [Key Financial Measures](index=1&type=section&id=Key%20Financial%20Measures) The company's Q1 FY26 financial results show a modest increase in total net sales, driven by showroom growth, while internet sales declined, with gross profit increasing but gross margin slightly decreasing, and operating and net losses narrowing compared to the prior year Key Financial Measures (Thirteen weeks ended) | Metric | May 4, 2025 (million USD) | May 5, 2024 (million USD) | % Inc (Dec) | | :----------------------------------- | :------------------------ | :------------------------ | :---------- | | Net sales | | | | | Showrooms | $96.5 | $81.6 | 18.2% | | Internet | $33.3 | $36.6 | (8.9%) | | Other | $8.6 | $14.4 | (40.5%) | | Total net sales | $138.4 | $132.6 | 4.3% | | Gross profit | $74.4 | $72.0 | 3.2% | | Gross margin | 53.7 % | 54.3 % | (60) bps | | Total operating expenses | $89.3 | $89.9 | (0.6%) | | SG&A | $67.1 | $68.4 | (1.9%) | | Advertising and marketing | $18.6 | $18.0 | 3.3% | | Net loss | $(10.8) | $(13.0) | 16.4% | | Basic net loss per common share | $(0.73) | $(0.83) | 12.0% | | Diluted net loss per common share | $(0.73) | $(0.83) | 12.0% | | Adjusted EBITDA | $(8.4) | $(10.3) | 17.7% | Omni-channel Sales and Showroom Count | Metric | Thirteen weeks ended May 4, 2025 | Thirteen weeks ended May 5, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | | Omni-channel Comparable Net Sales | 2.8 % | (14.8)% | | Internet Sales | (8.9)% | (9.0)% | | Ending Showroom Count | 267 | 246 | [Operational and Financial Highlights](index=2&type=section&id=Operational%20and%20Financial%20Highlights) The company experienced growth in net sales driven by showroom expansion and comparable sales, while managing to reduce SG&A expenses, with overall profitability improving with a narrower operating and net loss despite a slight dip in gross margin due to promotional activities, and cash and inventory levels seeing significant changes [Net Sales and Gross Profit Analysis](index=2&type=section&id=Net%20Sales%20and%20Gross%20Profit%20Analysis) Analysis of net sales growth driven by showroom expansion and comparable sales, alongside a detailed breakdown of gross profit and margin changes - Net sales increased by **$5.8 million**, or **4.3%**, in the first quarter of fiscal 2026 compared to the prior year period, primarily driven by an increase of **2.8%** in omni-channel comparable net sales and the net addition of **21 new showrooms**[7](index=7&type=chunk) - Gross profit increased **$2.4 million**, or **3.2%**, in Q1 FY26, while gross margin decreased **60 basis points** to **53.7%** of net sales, primarily due to a **230 basis point** decrease in product margin from higher promotional discounting, partially offset by decreases of **130 basis points** in inbound transportation costs and **40 basis points** in outbound transportation and warehousing costs[7](index=7&type=chunk) [Operating Expenses and Profitability](index=2&type=section&id=Operating%20Expenses%20and%20Profitability) Examination of changes in SG&A and advertising expenses, leading to an improved operating loss and narrowed net loss for the quarter - SG&A expense decreased **$1.3 million**, or **1.9%**, in Q1 FY26 due to decreases in professional fees, insurance matters, credit card fees, computer expense, and other overhead costs, partially offset by increases in payroll, equity-based compensation, and rent[7](index=7&type=chunk) - Advertising and marketing expense increased **$0.6 million**, or **3.3%**, in Q1 FY26, primarily driven by costs associated with the launch of a new product marketing campaign[7](index=7&type=chunk) - Operating loss was **$15.0 million** in Q1 FY26 compared to **$17.9 million** in the prior year period, with operating margin improving to **(10.8)%** of net sales from **(13.5)%**[7](index=7&type=chunk) - Net loss was **$10.8 million** (or **$(0.73)** per common share) in Q1 FY26, an improvement from **$13.0 million** (or **$(0.83)** per common share) in the prior year, primarily driven by a lower net loss before taxes[7](index=7&type=chunk) [Balance Sheet and Cash Flow Overview](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Overview) Overview of significant changes in cash, inventory, and operating cash flow, reflecting the company's liquidity and working capital management - The cash and cash equivalents balance as of May 4, 2025, was **$26.9 million**, down from **$72.4 million** as of May 5, 2024[7](index=7&type=chunk) - Total merchandise inventory was **$124.9 million** as of May 4, 2025, compared to **$94.7 million** as of May 5, 2024, primarily related to a planned stock inventory increase of **$25.9 million** coupled with an increase in freight capitalization of **$5.1 million**[7](index=7&type=chunk) - Net cash used in operating activities significantly increased to **$(41.4) million** in Q1 FY26 from **$(7.0) million** in Q1 FY25[3](index=3&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) The company's financial projections for both the full fiscal year 2026 and the upcoming second quarter [Full Year Fiscal 2026 Guidance](index=3&type=section&id=Full%20Year%20Fiscal%202026%20Guidance) The company projects full-year fiscal 2026 net sales between $700 million and $750 million, with Adjusted EBITDA ranging from $48 million to $60 million, and net income between $13 million and $22 million Full Year Fiscal 2026 Guidance | Metric | Range | | :----------------------------------- | :----------------------------- | | Net sales | $700 million to $750 million | | Adjusted EBITDA | $48 million to $60 million | | Net income | $13 million to $22 million | | Diluted income per common share | $0.80 to $1.36 | | Estimated diluted weighted average shares outstanding | Approximately 16.3 million | [Second Quarter Fiscal 2026 Guidance](index=3&type=section&id=Second%20Quarter%20Fiscal%202026%20Guidance) For the second quarter of fiscal 2026, Lovesac anticipates net sales between $157 million and $166 million, an Adjusted EBITDA loss of $2 million to $7 million, and a net loss of $8 million to $12 million Second Quarter Fiscal 2026 Guidance | Metric | Range | | :----------------------------------- | :-------------------------------- | | Net sales | $157 million to $166 million | | Adjusted EBITDA loss | $2 million to $7 million | | Net loss | $8 million to $12 million | | Basic loss per common share | $0.58 to $0.83 | | Estimated weighted average shares outstanding | Approximately 14.6 million | [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) Essential information about The Lovesac Company, its non-GAAP financial measures, and important forward-looking statements [About The Lovesac Company](index=3&type=section&id=About%20The%20Lovesac%20Company) The Lovesac Company is a Connecticut-based, technology-driven furniture company known for its "Designed for Life" approach, offering modular, adaptable products like Sactionals and Sacs, with the brand emphasizing responsible production and innovation, selling primarily online and through a physical retail presence - The Lovesac Company is a technology-driven company that designs, manufactures, and sells unique, high-quality furniture through its proprietary "Designed for Life" approach, resulting in products built to last and evolve with customers' lives[11](index=11&type=chunk) - Current product offerings include modular couches (Sactionals), premium foam beanbag chairs (Sacs), the Pillowsac Accent Chair, an immersive surround sound home theater system (StealthTech), and an innovative sofa seating solution (EverCouch)[11](index=11&type=chunk) - Products are marketed and sold primarily online directly at www.lovesac.com, supported by a physical retail presence in Lovesac branded showrooms, as well as through shop-in-shops and pop-up-shops with third-party retailers[11](index=11&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA as a non-GAAP financial measure to provide supplemental information for evaluating ongoing operating performance, defining it as earnings before interest, taxes, depreciation, and amortization, adjusted for certain non-cash and other items - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items such as management fees, equity-based compensation expense, write-offs of property and equipment, deferred rent, and financing expenses[14](index=14&type=chunk) - These non-GAAP financial measures provide management with comparable financial data for internal analysis and offer meaningful supplemental information to investors, facilitating a more meaningful comparison of actual results on a period-over-period basis[15](index=15&type=chunk) - Non-GAAP measures should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP, such as net income (loss) or net income (loss) per share, and have limitations as analytical tools[15](index=15&type=chunk) [Forward-Looking Statements & Investor Relations](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Investor%20Relations) The press release contains forward-looking statements regarding future operations, financial position, and product launches, which are subject to various risks and uncertainties, with the company disclaiming any obligation to update these statements and providing investor relations contact information - This press release contains forward-looking statements concerning expectations, strategy, plans, future operations, launch of new products, future financial position or projections, future revenue, projected expenses, and sustainability goals[16](index=16&type=chunk) - Actual results and performance could differ materially from those projected due to factors such as economic instability, changes in consumer spending, cybersecurity risks, ability to manage growth, supply chain disruptions, and competition[16](index=16&type=chunk) - The company disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made[16](index=16&type=chunk) - Investor Relations Contact: Caitlin Churchill, ICR, (203) 682-8200, InvestorRelations@lovesac.com[17](index=17&type=chunk) [Condensed Financial Statements (Unaudited)](index=6&type=section&id=Condensed%20Financial%20Statements%20(Unaudited)) Unaudited condensed financial statements for Q1 FY26, including balance sheets, statements of operations, and cash flows [Condensed Balance Sheets](index=6&type=section&id=Condensed%20Balance%20Sheets) The unaudited condensed balance sheets show total assets decreased from $532.25 million at February 2, 2025, to $483.74 million at May 4, 2025, primarily due to a decrease in cash and cash equivalents, with total liabilities also decreasing while stockholders' equity saw a reduction Condensed Balance Sheets (amounts in thousands) | (amounts in thousands, except share and per share amounts) | May 4, 2025 | February 2, 2025 | | :------------------------------------------------------- | :---------- | :--------------- | | **Assets** | | | | Cash and cash equivalents | $26,900 | $83,734 | | Trade accounts receivable, net | $13,022 | $16,781 | | Merchandise inventories, net | $124,926 | $124,333 | | Prepaid expenses | $12,977 | $14,807 | | Other current assets | $3,628 | $6,942 | | Total Current Assets | $181,453 | $246,597 | | Property and equipment, net | $85,267 | $77,990 | | Operating lease right-of-use assets | $164,272 | $157,750 | | Goodwill | $144 | $144 | | Intangible assets, net | $1,719 | $1,586 | | Deferred tax asset | $18,914 | $15,277 | | Other assets | $31,971 | $32,906 | | Total Assets | $483,740 | $532,250 | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | $25,019 | $51,814 | | Accrued expenses | $42,453 | $51,986 | | Payroll payable | $7,137 | $9,501 | | Customer deposits | $11,639 | $11,250 | | Current operating lease liabilities | $22,599 | $22,662 | | Sales taxes payable | $4,218 | $7,897 | | Total Current Liabilities | $113,065 | $155,110 | | Operating lease liabilities, long-term | $169,037 | $160,361 | | Income tax payable, long-term | $424 | $424 | | Line of credit | — | — | | Total Liabilities | $282,526 | $315,895 | | Stockholders' Equity | $201,214 | $216,355 | | Total Liabilities and Stockholders' Equity | $483,740 | $532,250 | [Condensed Statements of Operations](index=8&type=section&id=Condensed%20Statements%20of%20Operations) For the thirteen weeks ended May 4, 2025, net sales increased to $138.37 million from $132.64 million in the prior year, with gross profit also increasing, and the company reporting a reduced net loss of $10.84 million compared to $12.96 million in the previous year Condensed Statements of Operations (amounts in thousands) | (amounts in thousands, except per share data and share amounts) | Thirteen weeks ended May 4, 2025 | Thirteen weeks ended May 5, 2024 | | :------------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net sales | $138,373 | $132,643 | | Cost of merchandise sold | $64,003 | $60,598 | | Gross profit | $74,370 | $72,045 | | Operating expenses: | | | | Selling, general and administrative expenses | $67,117 | $68,403 | | Advertising and marketing | $18,594 | $17,996 | | Depreciation and amortization | $3,613 | $3,502 | | Total operating expenses | $89,324 | $89,901 | | Operating loss | $(14,954) | $(17,856) | | Interest and other income, net | $325 | $744 | | Net loss before taxes | $(14,629) | $(17,112) | | Income tax benefit | $3,789 | $4,152 | | Net loss | $(10,840) | $(12,960) | | Net loss per common share: | | | | Basic | $(0.73) | $(0.83) | | Diluted | $(0.73) | $(0.83) | | Weighted average shares outstanding: | | | | Basic | 14,792,080 | 15,537,823 | | Diluted | 14,792,080 | 15,537,823 | [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) The condensed statement of cash flows shows a significant increase in net cash used in operating activities, from $(7.01) million in Q1 FY25 to $(41.38) million in Q1 FY26, leading to a substantial net decrease in cash and cash equivalents for the quarter Condensed Statements of Cash Flows (amounts in thousands) | (amounts in thousands) | Thirteen weeks ended May 4, 2025 | Thirteen weeks ended May 5, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | **Cash Flows from Operating Activities** | | | | Net loss | $(10,840) | $(12,960) | | Net cash used in operating activities | $(41,377) | $(7,014) | | **Cash Flows from Investing Activities** | | | | Purchase of property and equipment | $(8,577) | $(7,296) | | Payments for patents and trademarks | $(124) | $(8) | | Net cash used in investing activities | $(8,701) | $(7,304) | | **Cash Flows from Financing Activities** | | | | Taxes paid for net share settlement of equity awards | $(744) | $(356) | | Repurchases of common stock | $(6,000) | — | | Payment of deferred financing costs | $(12) | — | | Net cash used in financing activities | $(6,756) | $(356) | | Net change in cash and cash equivalents | $(56,834) | $(14,674) | | Cash and cash equivalents - Beginning | $83,734 | $87,036 | | Cash and cash equivalents - Ending | $26,900 | $72,362 | [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Reconciliation of non-GAAP financial measures, specifically Adjusted EBITDA, to the most directly comparable GAAP measure, net loss [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation of net loss to Adjusted EBITDA shows an improvement from $(10.26) million in Q1 FY25 to $(8.45) million in Q1 FY26, with key adjustments including equity-based compensation and other non-recurring expenses Adjusted EBITDA Reconciliation (amounts in thousands) | (amounts in thousands) | Thirteen weeks ended May 4, 2025 | Thirteen weeks ended May 5, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(10,840) | $(12,960) | | Interest income, net | $(327) | $(744) | | Income tax benefit | $(3,789) | $(4,152) | | Depreciation and amortization | $3,613 | $3,502 | | EBITDA | $(11,343) | $(14,354) | | Equity-based compensation (a) | $2,622 | $1,203 | | Loss on disposal of assets (b) | $21 | $43 | | Other non-recurring expenses (c) | $253 | $2,850 | | Adjusted EBITDA | $(8,447) | $(10,258) | - Equity-based compensation (a) represents expenses such as compensation expense and employer taxes related to RSU equity vesting and exercises associated with stock options and restricted stock units granted to associates and board of directors[25](index=25&type=chunk) - Other non-recurring expenses (c) for the thirteen weeks ended May 4, 2025, include professional fees related to the restatement of previously issued financial statements, severance, and expenses associated with other legal matters, partially offset by benefits related to insurance proceeds[27](index=27&type=chunk)

Core Insights - The Lovesac Company reported a 4.3% increase in total net sales for the first quarter of fiscal 2026, reaching $138.4 million compared to $132.6 million in the prior year [3][8] - The company experienced growth in showroom sales by 18.2%, while internet sales declined by 8.9% [3][4] - The launch of the EverCouch platform is expected to double the company's total addressable market, enhancing long-term growth potential [2][8] Financial Performance - Net loss for the first quarter was $10.8 million, an improvement from a net loss of $13.0 million in the same period last year, resulting in a basic net loss per share of $(0.73) compared to $(0.83) [3][21] - Gross profit increased by 3.2% to $74.4 million, with a gross margin of 53.7%, down from 54.3% due to higher promotional discounting [3][8] - Total operating expenses decreased slightly by 0.6% to $89.3 million, with selling, general and administrative expenses (SG&A) down by 1.9% [3][8] Operational Highlights - The company opened 11 new showrooms and closed 1, bringing the total showroom count to 267 [4][8] - Adjusted EBITDA loss improved to $(8.4) million from $(10.3) million year-over-year [3][8] - Cash and cash equivalents decreased significantly to $26.9 million from $72.4 million a year earlier, indicating a cash flow challenge [8][22] Market Position and Strategy - The company gained market share despite category headwinds, attributed to its Designed for Life product platforms and efficient customer acquisition strategies [2][8] - The introduction of the EverCouch platform is part of a strategic roadmap aimed at unlocking significant growth potential [2][8] - The company remains cautious about the dynamic macroeconomic environment but expresses confidence in its long-term growth trajectory [2][8]

Financial Performance - The Lovesac Company is expected to report a quarterly loss of 71 cents per share for the first quarter, compared to a loss of 63 cents per share in the same period last year [1] - The projected quarterly revenue is $137.47 million, an increase from $132.64 million a year earlier [1] - For the fourth quarter of FY25, Lovesac reported a revenue decline of 3.6% year-on-year to $241.49 million, which exceeded the analyst consensus estimate of $233.95 million [2] Stock Performance - Lovesac shares fell by 1.9% to close at $20.50 on the day prior to the earnings report [2] - Analysts have varying ratings and price targets for Lovesac, with Oppenheimer maintaining an Outperform rating and a price target of $35, while Roth MKM raised its price target from $22 to $28 [8] - DA Davidson cut its price target from $35 to $24, and Canaccord Genuity reduced its target from $45 to $30 [8]

Core Insights - Wall Street analysts forecast a quarterly loss of $0.84 per share for Lovesac (LOVE), indicating a year-over-year decline of 1.2% [1] - Anticipated revenues for the quarter are projected to be $136.05 million, reflecting a 2.6% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, suggesting analysts have reassessed their initial projections [1] Revenue Estimates - 'Net Sales- Other' is expected to reach $13.91 million, representing a year-over-year decline of 3.6% [4] - 'Net Sales- Internet' is estimated at $36.39 million, indicating a slight decrease of 0.6% year over year [4] - 'Net Sales- Showrooms' is projected to be $85.76 million, showing an increase of 5.1% from the previous year [4] Showroom Metrics - Analysts expect the 'Ending Showroom Count' to be 269, up from 246 in the same quarter of the previous year [5] Stock Performance - Shares of Lovesac have returned -1.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 7.2% [5] - Lovesac holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the overall market in the near future [5]

Financial Performance - Cannara Biotech reported net revenues of $26.6 million for Q2 2025, a 35% increase from $19.7 million in Q2 2024, driven by national brand growth and product innovation [3][6][11] - Gross profit before fair value adjustments rose 52% to $10.8 million in Q2 2025, with gross margins improving to 41% from 36% [4][11][29] - The company achieved net income of $3.3 million, a significant improvement from a net loss of $3.4 million in the prior year [4][11][29] - Adjusted EBITDA more than doubled to $7.1 million, marking the sixteenth consecutive quarter of positive Adjusted EBITDA, up 102% from $3.5 million in Q2 2024 [4][11][29] Operational Highlights - Cannara activated its 11th grow zone in April 2025, with a 12th zone expected to come online in May, expanding active canopy to over 300,000 sq. ft. and supporting an annual production capacity of up to 40,000 kg [3][4][13] - The company plans to launch over 20 new products in 2025, with a focus on scaling to meet unmet demand [3][4] Market Position - Cannara's estimated national retail market share reached 3.9% in Q2 2025, a 34.5% increase from 2.9% in Q2 2024, with notable gains in Québec, Ontario, and Alberta [3][6][11][23] - The company reported a 40% increase in gross cannabis revenues before excise taxes to $36.8 million, reflecting strong demand across existing and new markets [11][29] Strategic Execution - The company is focused on disciplined execution and brand investment while maintaining low capital expenditures, presenting high return on investment opportunities [4][6] - Cannara's operational model has demonstrated resilience, achieving consistent profitability and growth despite challenges in the market [4][6]

Core Insights - The market has experienced volatility due to unexpected tariff policy changes, leading to uneven recovery among firms, with some stocks emerging as high-momentum plays [1][2] Group 1: Software-Based Drug Development - Certara Inc. has seen a 30% year-to-date increase in stock price, driven by strong outlook and a $100 million share buyback program [3][6] - Certara's revenue guidance for 2025 is projected between $415 million and $425 million, with adjusted earnings per share expected to be between 42 cents and 46 cents [4] - Schrödinger Inc. has also experienced a 25% year-to-date increase, attributed to FDA policy shifts favoring human-relevant testing and a legal settlement [9][10] Group 2: Modular Furniture Industry - The Lovesac Co. reported a 23% increase in stock price following an earnings beat and the launch of new product platforms, with EPS exceeding expectations by 33 cents [12][14] - Lovesac's modular design allows for increased supply chain flexibility, enabling the company to adapt to geopolitical changes [14] - Analysts project a 57.86% upside for Lovesac's stock, with a current price of $20.06 and a 12-month forecast of $31.67 [13][14]

Core Viewpoint - Lovesac has transitioned from a niche foam beanbag chair manufacturer to a premium furniture brand, focusing on modular "Sactionals" and innovative partnerships like the one with Harman Kardon for integrated sound systems [1][2]. Financial Performance - In fiscal Q4 2025, Lovesac reported EPS of $2.13, exceeding estimates by $0.26, while revenues decreased by 3.6% YOY to $241.5 million, surpassing expectations by $11.17 million [6]. - The gross margin improved by 70 basis points to 60.4%, attributed to reduced inbound and outbound transportation costs [6]. - For fiscal 2026, the company anticipates EPS between $0.80 and $1.36, with a midpoint of $1.08, and revenues projected between $700 million and $750 million, with a midpoint of $725 million, exceeding consensus estimates [11]. Product and Market Strategy - Lovesac's Sactionals offer customizable configurations and over 200 cover options, providing a competitive edge over traditional furniture [2][3]. - The company has launched the Sactionals Reclining Seat and plans to introduce two more platforms in the next three years [7]. - Lovesac aims to expand its showroom count from 258 to over 400, targeting affluent consumers, with 82% of buyers earning over $100,000 annually [7]. Supply Chain and Tariff Management - The company has restructured its supply chain to mitigate tariff impacts, diversifying its countries of origin, with Vietnam (50%), Malaysia (28%), China (13%), and Indonesia (6%) [12][13]. - Lovesac is entering fiscal 2026 with higher-than-normal inventory levels to strategically manage potential tariff-related costs [14]. - The company plans to implement selective price increases due to its strong brand and unique product offerings, rather than broad inflationary pressures [15]. Analyst Outlook - Analysts have set a 12-month price target of $31.67 for Lovesac, indicating a potential upside of 57.86% from the current price of $20.06 [10]. - Despite a significant short interest of 24.91%, there is optimism regarding the stock's potential to reach a 65% upside based on analyst consensus [5].

Group 1 - Lovesac (NASDAQ: LOVE) provided a positive update with its Q4 earnings report in mid-April, marking a significant turnaround for the premium modular furniture company [1] - The company has been under scrutiny for a long time, and this update is seen as a crucial development in its market performance [1] Group 2 - Gary Alexander, with extensive experience in technology and startups, has been a contributor to Seeking Alpha since 2017, indicating a strong background in analyzing market trends [1]

MONTREAL, April 16, 2025 (GLOBE NEWSWIRE) -- Cannara Biotech Inc. (“Cannara”, “the Company”, “us” or “we”) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced that it will release its financial results for the second quarter ended February 28, 2025, on Monday, April 28, 2025, at 7:00 a.m. ET. Cannara Biotech’s CFO, Nic ...

The Lovesac Company (LOVE) reported better-than-expected fourth-quarter fiscal 2025 (ended Feb. 2, 2025) results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, earnings increased but revenues declined.This downside was due to a 9.4% drop in omnichannel comparable net sales. The negative impact was partially offset by the net addition of 27 showrooms during the fiscal. However, in the fourth quarter of fiscal 2025, the company did not open any new showrooms and ...