New showrooms - Net sales growth was mainly driven by the addition of 14 net new showrooms, partially offset by declining comparable sales and closure of Best Buy shop-in-shop locations
Tariff refunds - Gross margin improvement was primarily due to IEEPA tariff recoveries, which contributed 1,240 basis points to margin
Price increases - Product margin improved due to price increases, though partially offset by higher promotional discounting and increased transportation costs
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "hold"
Wall Street's median 12-month price target for Lovesac Co is $22.00, about 37.2% above its September 9 closing price of $16.03
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago
Quarterly results miss sales estimates
U.S. furniture maker's Q2 net sales rose slightly year over year but missed analyst expectations
Q2 adjusted EBITDA beat analyst expectations
Gross margin improved due to tariff refunds and product margin gains
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