Shares of The Lovesac Company (NASDAQ: LOVE) were on a downslide in pre-market trading on Wednesday after the home furnishings retailer swung to a loss in Q3. The company reported a net loss of $0.55 per share versus a profit of $0.17 in the same period last year. However, this loss was still narrower than Street expectations of a loss of $0.76 per share.
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A major reason for the company posting losses in Q3 was rising advertising costs and sales, general, and administrative (SG&A) costs. LOVE’s advertising costs increased by 20.3% while SG&A costs soared by 40.9% in the third quarter.
However, net sales jumped by 15.5% year-over-year to $134.8 million in Q3 and surpassing analysts’ expectations by $0.34 million.
Wall Street analysts continue to remain upbeat about LOVE stock with a Strong Buy consensus rating based on a unanimous four Buys.
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