June 11, 2026

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The Lovesac Company (NASDAQ: LOVE) reported first-quarter fiscal 2027 results above expectations, with revenue slightly higher than estimates and a smaller-than-expected loss, though sales remained nearly flat and margins declined.
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Lovesac is a home furnishings company best known for its modular Sactionals couches, beanbag-style Sacs, and home seating products sold through showrooms, ecommerce, and retail partnerships.
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The company reported a loss of $0.76 per share, better than estimates for a loss of $1.03, representing a 26.2% earnings surprise. Revenue came in at $138.20 million, above estimates of $137.09 million, though revenue declined 0.1%.

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Results Were Mixed

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Net sales were $138.2 million, nearly flat from $138.4 million in the prior-year quarter. Internet sales rose 7.1%, while showroom sales increased slightly by 0.6%. Other sales fell 36.3%, mainly due to the closure of Best Buy shop-in-shop locations.
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Comparable net sales declined 1.0%, compared with 2.8% growth a year earlier. Lovesac ended the quarter with 281 showrooms, up from 267 last year.
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Gross margin declined to 52.1% from 53.7%, pressured by higher inbound transportation, tariff costs, outbound transportation, and warehousing costs. Product margin improved, helped by price increases and cost reduction initiatives, but higher promotions offset part of the benefit.
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Net loss widened slightly to $11.1 million, or $0.76 per share, from a loss of $10.8 million, or $0.73 per share, a year earlier. Adjusted EBITDA declined to a loss of $10.5 million from a loss of $8.4 million.

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Guidance

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For fiscal 2027, Lovesac expects net sales of $700 million to $740 million, adjusted EBITDA of $35 million to $46 million, and net income of $5 million to $12 million.
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For the second quarter, the company expects net sales of $157 million to $166 million, adjusted EBITDA ranging from a $4 million loss to $2 million of income, and a net loss of $3 million to $7 million.

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The Bigger Picture

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Lovesac’s quarter was not a clean growth story, but it was better than feared.
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Revenue beat expectations, and the loss was narrower than analysts expected. Still, comparable sales declined, margins compressed, and adjusted EBITDA weakened. The key question is whether upcoming product launches, domestic production, and showroom expansion can restart stronger growth while reducing cost pressure.
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