If you see amazing earnings at the side of the road, it means a 9% rally for Loooovesac!
Lovesac, yeah yeah!
We’re heading down the Wall Street highway, looking for a Lovesac getaway. Heading for a Lovesac (Nasdaq: LOVE) getaway.
I got me some earnings — they’re as big as a whale — and we’re heading on down to Lovesac.
I got me some Great Stuff — it seats about twenty? So, hurry up and bring your jukebox money!
OK, Great Ones, Lovesac is a little old place where … you can buy some furniture?
That’s right. Lovesac designs, manufactures and sells sactionals, sacs, foam beanbag chairs and accessories.
I make beanbags and beanbag accessories.
The sign says: “Stay away fools!” Cause beanbags rule at the Lovesac.
It would seem that beanbags just rule in general, judging from Lovesac’s quarterly report. Let’s look at those digits:
• Earnings per share: $0.17 reported versus $0.02 expected.
• Revenue: $116.7 million versus $113.3 million expected.
That’s right: Lovesac beat Wall Street’s target by $0.15 per share. That’s impressive for a glorified beanbag company. What’s more, revenue skyrocketed 56.2% from last year. Same-store sales helped out quite a bit, rising 47.1% and blowing away expectations for a 36.9% gain.
Of course, CEO Shaw Nelson was overjoyed:
Clearly, that’s not the full Nelson. For the rest of his Lovesac earnings remarks, click here.
The point is, Lovesac is more than just a little old sac, set way back in the middle of a field. Today’s earnings prove it’s a funky old sac, and customers keep coming back.
I mean, there’s earnings on the mattress. Earnings on the highway. Earnings on the front porch. Earnings on the highway…
Seriously, though, Lovesac appears to have tapped into both the work-from-home movement and the pandemic urge to not leave your house. Who doesn’t want to be all comfy and cozy in a Lovesac while working from home?
That said, Lovesac customers must be a different breed … or they’ve changed beanbags a lot since I was a kid. My parents bought us a beanbag once when I was young.
Once was enough. White dots everywhere. That stuff is like glitter. It gets everywhere and never, ever leaves.
Wait … what’s this? The Great Stuff team has just informed me that Lovesac uses a proprietary “Durafoam” without beads or beans or beany beads. Well … that’s a beanbag of a different color.
Still, have you seen the prices on these sacs? $2,800 for a love seat and $4,625 for a couch? Ouch. If you thought beanbags were just for college students, think again. What college student is shelling out that kinda money for furniture?
My point is, Lovesac customers must really, really like these things. I might have to try one out. Still, I have trouble seeing Lovesac as more than a furniture fad. But the analyst community thinks otherwise, with an average price target of $103.57 — that’s a 46% upside from today’s perch.
When it comes to investing in LOVE stock, you do you, Great Ones. I’m just here for the B-52’s references.
Don’t Get Too Comfy, Now. Check This Out:
One former Tesla employee just released a brand-new innovation promising to make every electric vehicle (EV) out there instantly obsolete.
And it goes beyond just EVs: His new technology is rolling out to power 50 million homes and businesses, setting up a new market 10X bigger than EVs — and you can buy in right away.
Click here for the full story.
There was a veritable flood of interesting earnings reports today. So, who’s next on the earnings confessional’s altar of sacrifice?
It’s Stitch Fix (Nasdaq: SFIX), a site that offers personalized clothes-buying and unique tailored “style” advice … or something along those lines. It’s no Lovesac, but you might just be able to get the boots to match your chinchilla phur sac.
He said “sac” again … snort.
Anyway, user growth on Stitch Fix’s platform is sinking like a brashly ballasted boat, and the company cites a continued need to educate customers about what the company even does. The problem here is that Stich Fix’s promo material isn’t the fix-all stitch in time that the company hoped, with users signing up … and then dropping Stitch Fix like it’s hot.
The Stitch Fixers have spoken: Once users are on the platform, they either aren’t sure what to do with Stitch Fix or it’s simply not that integral to their lives. I mean, having an online personal stylist sounds like a bougie dream until you pay $20 to get suggested the same stuff you were already gonna pick out … or that you already own.
Worse still, Stitch Fix can’t even keep up with its slowing demand. Supply chain issues (the dirty word!) led the company to lower its expectations from here on out. And when those doubts dropped, so too did SFIX shares, plunging 27% on the news.
Remember our deep dive into ChargePoint (NYSE: CHPT) a few weeks back? I had high hopes for the charging-as-a-service stock. Not high enough to actually drop cash on the sucker, but still…
ChargePoint was in line for a heaping helping of Biden’s infrastructure funding, and CHPT shares indeed saw their lil’ short-term infrastructure bump … then immediately died on the vine. Lackluster earnings tend to do that to a stock, despite a federal cash injection.
Revenue shot up 79% on the quarter and reached the high end of ChargePoint’s own expectations, but its wider-than-estimated earnings loss let loose a torrent of backlash from the Street. And not even a sales guidance boost could save CHPT shares from their 6% sell-off.
Forget Loki, Thor Industries (NYSE: THO) is the place to be. The RV maker is still thundering along, steadier than ever. Earnings jumped up 111% year over year, while sales ticked up 56% and came thiiiis close to breaching $4 billion.
Suffice it to say, Thor destroyed analyst estimates all across the board.
Plus, Thor’s backlog doubled year over year and passed $18 billion, which could take until 2023 to work through.
Its buyout of RV parts maker Airxcel should help Thor clear out some of those orders even quicker, but Thor’s still not content with just one buyout to boost its manufacturing might — oh no siree!
Right after dropping its banger of a report, Thor said it’s buying out another motorhome materials maker. This time, it’s sustainable sidewall seller Elkhart Composites … because why not? This is Thor, the god of RVs, apparently.
At long last … at the eleventh hour … all you YouTube binge-watchers are saved! Well, if you watch YouTube on a Roku (Nasdaq: ROKU) device, at least. Longtime streamers and ROKU diehards alike know that Google has been trying to strongarm Roku into giving YouTube and YouTubeTV exclusive preference over other video apps. (What else is new?)
This was supposed to be the day that YouTube disappeared off of Roku … but today is not that day! Unwilling to budge on its platform-agnostic identity, Roku still managed to strike a multiyear deal with the almighty Alphabet to extend YouTube and YouTube TV service on Roku.
Since terms of the deal weren’t disclosed, I’m hesitant to call anything involving Google a “win-win,” … but ROKU investors can still bask in the glow of today’s 15% rally all the same.
Get hyped, Great Ones! It’s time for a brand-new Poll of the Week!
But first, spin that time-turner back a few turns and journey to seven days ago. If you recall, last week we asked how many of you would ever invest in dinner-deliverer DoorDash … considering its stock is easier to find than my Chipotle order.
It seems that DoorDash has left one too many deliveries at other peoples’ doorsteps — never mind that it couldn’t turn a profit in the middle of a global pandemic — because an overwhelming 85.7% of you are bypassing DASH until it’s in the black.
For now, it’s easier and cheaper to cook your meals … erm, profits at home.
Another 10.2% of Great Ones said they’re already dashing, and I’m dying to know … how’s that working out for you? (Let me take a wild guess: Not great, Bob!)
And last but not least, 4.1% of you would consider adding DASH to your portfolios — but dining and dashing are definitely on the menu. Remind me never to go out to eat with you lot…
But enough of this food-for-thought. I’ve already deleted the DoorDash app off my phone for the umpteenth time and don’t need more incentive to break my delivery fast. We have far more important things to talk about anyway … like today’s brand-spanking-new poll!
If you couldn’t already tell from Great Stuff’s opening lines, I’ve been giggling like a schoolgirl writing about Lovesac’s beanbag bonanza. I swear, sometimes this job is just too good…
But while Lovesac’s $1,040 SuperSac probably won’t wind up in my living room, I’ve gotta know: Are you feeling a sac attack coming on?
Let me rephrase that before I get myself in trouble: Would you buy one of Lovesac’s products? Or have you left beanbags and beanbag accessories in the past along with everything you learned in college?
Click below and let me know:
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I know, I know. We ask some real mindbenders throughout these virtual pages — some real soul-searching Stuff. But really, what’s life without a little levity?
If I made you laugh at least once today, then I’ve done my job … and hopefully you learned a little sumpin’ sumpin’ along the way.
But if Lovesacs and fat stacks aren’t what get you up in the morning — or what help you fall asleep at night, I don’t know how Great Stuff fits into your schedule — then tell me: What do you want to hear more about?
GreatStuffToday@BanyanHill.com is where you can reach us best. Write to us whenever the market muse calls to you!
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Until next time, stay Great!
Editor, Great Stuff