The Lovesac Company (NASDAQ: LOVE) has released its financial results for the first quarter of fiscal 2025, which ended on May 5, 2024. The company reported a net sales figure of $132.6 million for the quarter, representing a decrease of $8.6 million or 6.1% compared to the prior year period.
The gross profit for the quarter increased by $1.4 million, or 2.1%, with the gross margin improving to 54.3% of net sales from 50.0% in the prior year period. However, the total operating expenses increased by 17.9%, mainly due to investments in payroll, professional fees, rent, infrastructure, selling related expenses, and equity-based compensation.
The net loss for the first quarter of fiscal 2025 was $13.0 million, or $(0.83) net loss per common share, compared to $4.1 million, or $(0.27) net loss per common share, in the prior year period. The company recorded an income tax benefit of $4.2 million during the first quarter of fiscal 2025, compared to $1.3 million in the prior year period.
The company's cash and cash equivalents balance as of May 5, 2024, was $72.4 million, compared to $45.1 million as of April 30, 2023, and it had no balance on its line of credit as of May 5, 2024. The total merchandise inventory was $94.7 million as of May 5, 2024, compared to $104.5 million as of April 30, 2023.
Looking ahead, the company reaffirmed its full-year fiscal 2025 outlook, with net sales expected to be in the range of $700 million to $770 million and adjusted EBITDA in the range of $46 million to $60 million.
Following these announcements, the company's shares moved 2.4%, and are now trading at a price of $26.6. For the full picture, make sure to review Lovesac's 8-K report.
