The Lovesac Company ( LOVE ) shares are plummeting on Thursday.

The company reported fourth-quarter earnings per share of $1.87, missing the analyst consensus of $1.93. Quarterly revenues of $250.507 million missed the street view of $265.323 million.

Sales rose 5% year over year, primarily driven by growth within showrooms and internet channels.

Gross profit increased 11.9% to $149.6 million in the fourth quarter year over year. Gross margin increased 360 basis points to 59.7% from 56.1% in the prior year period.

Operating income was $40.4 million in the fourth quarter of fiscal 2024 compared to $36.5 million in the prior year period. 

Operating margin expanded to 16% of net sales in the fourth quarter compared to 15.4% a year ago.

The cash and cash equivalents balance as of February 4, 2024, was $87.0 million. Total merchandise inventory was $98.4 million as of February 4, 2024, as compared to $119.6 million as of January 29, 2023.

Outlook: Lovesac ( LOVE ) expects first-quarter net sales of $126 million-$132 million versus the $147.53 million estimate. The company projects first-quarter earnings per share of $(0.84)-$(1.03) versus the $(0.15) estimate.

The company sees FY25 net sales of $700 million-$770 million versus a $765.38 million estimate and earnings per share of $1.06-$1.59 versus the $2.15 estimate.

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Price Action: LOVE shares are trading lower by 13.97% to $20.08 on the last check Thursday. 

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