What happened
Shares of furniture company The Lovesac Company (LOVE -0.05%) surged on Thursday after the company reported financial results for the second quarter of its fiscal 2022 that exceeded expectations by a wide margin. As of 12:30 p.m. EDT, the stock was up a whopping 18%.
So what
According to Yahoo Finance, analysts -- at best -- expected Lovesac to report revenue of $91.7 million resulting in a net loss of $0.03 per share for Q2. In reality, Lovesac generated revenue of $102.4 million and reported earnings per share (EPS) of $0.52. Those are huge beats on the top and bottom lines.
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Perhaps more impressive than beating analysts' expectations is Lovesac's growth rate. Q2 revenue was up 65% year over year. Keep in mind that this wasn't an easy year-over-year comparison -- sales in the second quarter last year were up almost 29%. But it's an ongoing growth story investors might be getting used to. After all, management was quick to point out it's better than 25% revenue growth in 14 consecutive quarters.
Now what
Lovesac's management said the third quarter is off to a good start. Moreover, it said it's not really worried about the supply chain issues other companies are facing. This is good news considering demand for its products remains high. In fact, demand is so high that management didn't need to offer promotional pricing as much as it anticipated. That certainly seems to bode well for this small-cap furniture company.
