The Lovesac Company announced its financial results for the first quarter of fiscal 2026, ended May 4, 2025, on June 12, 2025.
Net sales increased by 4.3% year-over-year to $138.4 million, exceeding analyst consensus estimates of $137.47 million. This growth was driven by an 18.2% increase in showroom net sales and a 2.8% increase in omni-channel comparable net sales.
The company reported a net loss of $10.8 million, or $0.73 per diluted share, which was narrower than the $12.96 million loss, or $0.83 per share, in the prior year period, and beat analyst estimates of a $0.71 loss per share.
Gross margin decreased by 60 basis points to 53.7%, primarily due to higher promotional discounting, partially offset by improvements in inbound and outbound transportation and warehousing costs.
Lovesac officially launched its third Designed For Life Platform, EverCouch, in May 2025, expanding into the armchair, loveseat, and sofa market, effectively doubling its total addressable market.
For the full fiscal year 2026, the company reaffirmed its guidance, projecting net sales between $700 million and $750 million, and adjusted EBITDA between $48 million and $60 million, assuming a continued 5% decline in the overall furniture category.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.