Lovesac reported better-than-expected fourth-quarter earnings and revenue
Shares of Lovesac Co (NASDAQ:LOVE) were last seen up 12.1% at $17.86, after the furniture retailer's better-than-expected fourth-quarter earnings and revenue results and upbeat full-year guidance. The company also appointed Heidi Cooley as Chief Brand and Marketing Officer.
On the charts, LOVE hit a nearly five-year low of $12.12 yesterday before turning higher for a large 27.8% gain. The 50-day moving average, which the stock hasn't conquered since its mid-December bear gap, appears to be keeping a cap on today's gains, however. Year to date, the equity is down 24.7%.
Lovesac stock's typically quiet options pits have already seen 24 times its average daily options volume. The April 17.50 call is the most popular, with new positions being opened there.
Meanwhile, short interest has been building, and now represents 27.8% of the stock's available float. Given the recent rally, plenty of these shorts are underwater, and a bout of short covering could provide further tailwinds.