Lovesac Co (NASDAQ:LOVE) stock rose 1.37% (As on September 13, 11:33:27 AM UTC-4, Source: Google Finance) after the company’s fiscal Q2 net loss and net sales beat analysts’ consensus. During the second quarter of fiscal 2025, the company opened 10 additional showrooms and closed 2 showrooms. Gross profit remained flat in the second quarter of fiscal 2025 compared to the prior year period. Gross margin decreased 80 basis points to 59.0% of net sales in the second quarter of fiscal 2025 from 59.8% of net sales in the prior year period primarily driven by a decrease of 110 basis points in product margin driven by higher promotional discounting and an increase of 50 basis points in outbound transportation and warehousing costs, partially offset by a decrease of 80 basis points in inbound transportation costs. Advertising and marketing expense decreased $3.2 million, or 12.2% in the second quarter of fiscal 2025 compared to the prior year period primarily due to costs related to our 25th anniversary campaign in FY24 not repeating in FY25. Operating loss was $8.4 million in the second quarter of fiscal 2025 compared to $1.0 million in the prior year period. Operating margin was (5.3)% of net sales in the second quarter of fiscal 2025 compared to (0.7)% of net sales in the prior year period. The cash and cash equivalents balance as of August 4, 2024 was $72.1 million as compared to $54.7 million as of July 30, 2023.

LOVE in the second quarter of FY 25 has reported the adjusted loss per share of 38 cents, beating the analysts’ estimates for the adjusted loss per share of 44 cents. The company had reported the adjusted revenue growth of 1.3 percent to $156.6 million in the second quarter of FY 25, beating the analysts’ estimates for revenue of $155.1 million. The increase in net sales was primarily driven by the addition of 31 new showrooms, partially offset by a 5.4% decrease in omni-channel comparable net sales.

The company expects a fiscal Q3 basic loss per share of between $0.28 and $0.50 on net sales of $152 million to $160 million. Analysts polled by Capital IQ expect EPS of $0.10 on net sales of $164 million, respectively.

For fiscal 2025, the company expects income of $1.01 to $1.26 per diluted share on net sales of $700 million to $735 million. Analysts surveyed by Capital IQ expect $1.23 and $722 million, respectively.