The Lovesac Company announced its financial results for the second quarter of fiscal 2026, ended August 3, 2025, on September 11, 2025.
Net sales increased by 2.5% year-over-year to $160.53 million, slightly beating analyst consensus estimates of $160.229 million. The company reported a quarterly loss of $0.45 per share, which beat analyst consensus estimates of a $0.71 loss per share.
Gross margin decreased by 100 basis points to 56.3%, primarily due to higher promotional discounting and increased inbound transportation costs, partially offset by lower outbound transportation and warehousing costs.
Selling, General, and Administrative (SG&A) expenses decreased by 0.6% year-over-year, demonstrating leverage as a percentage of net sales (49.8% vs 51.4% in the prior year).
For the full fiscal year 2026, Lovesac slashed its GAAP EPS guidance from $0.80-$1.36 to $0.52-$1.05. The company expects third quarter net sales between $153 million and $159 million, and an adjusted EBITDA loss between $1 million and $6 million.
CEO Shawn Nelson noted that the company is balancing near-term industry dynamics amidst the evolving tariff landscape with ongoing secular tailwinds, while reaffirming confidence in delivering long-term value.
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