Here’s what Lovesac stock went up today

Actions of the furniture business love bag (LOVE 23.12%) rose Thursday after the company reported financial results for the second fiscal quarter of 2025. As of 10:50 a.m. ET, shares of Lovesac were up 25%.

Lovesac offers investors acceptable figures

For Q2, Lovesac management said it expects net sales of $152 million to $160 million and a net loss of $6 million to $8 million. First, the company performed in line with this guidance, generating net sales of nearly $157 million. And it performed better on the bottom line, with a net loss of just $5.9 million.

Looking ahead to the remainder of fiscal 2025, Lovesac management was not overwhelmingly bullish with its guidance. It previously thought it could generate as much as $770 million in net sales for the full year, but now thinks $735 million will be the top line. Moreover, it hoped that it could earn as much as $27 million in net income, but now it will try to raise $21 million.

Can Lovesac stock continue to rise?

It’s important not to read too much into one-day movements for stocks, but this is especially true for Lovesac stocks. It is a small-cap stock with a low float, meaning there are not many shares available for trading. Therefore, small movements by investors can cause large fluctuations in the share price. In previous quarters, Lovesac stock also made big moves only to return to where it was previously.

Lovesac is selling more furniture towards the premium end of the market and many are walkable in the fourth quarter. It had a net loss of $19 million in the first half of fiscal 2025 and expects to lose at least another $4 million in the third quarter before the fourth quarter does the heavy lifting.

This seasonality is common to Lovesac businesses. If it can hit its guidance this year, I think the stock will do well — it’s trading at about 20 times expected earnings, which is reasonable. In the long run, I think this is a good deal with a quality product. Investors just need to keep in mind that it can be a volatile race, potentially more so this year if the economy continues to slow.