Why Lovesac Stock Soared Today
Shares of The Lovesac Company (NASDAQ: LOVE) are soaring today after the company reported results for the third quarter of fiscal 2021 that even outpaced management's high hopes. This little furniture company has a strong direct-to-consumer business, benefiting from a shift to e-commerce in 2020 due to the COVID-19 pandemic. The third-quarter gains were impressive, and the stock is responding accordingly, up 14% as of 10:40 a.m. EST on Wednesday.
Lovesac reported third-quarter net income of $2.5 million compared to a loss of $6.7 million in the same quarter last year. Moreover, it reported $6 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This is significant because management had guided for an adjusted EBITDA loss of $10 million to $11 million.
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Source Fool.com
