Lovesac's Q4 performance exceeded expectations, and the stock soared 18%

LootboxPhobia · 2026-03-26T19:32:54+00:00

The Lovesac Company exceeded analyst expectations in the fourth quarter, with an adjusted earnings per share of $2.19 and revenue of $248 million. Despite economic challenges, net sales increased by 2.4%, but net profit declined by 64.8%. The company expects revenue for fiscal year 2027 to be between $700 million and $750 million.

LootboxPhobia

2026-03-26 19:32:54

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The Lovesac Company (NASDAQ: LOVE) in Stamford, Connecticut, reported fourth-quarter earnings that exceeded analyst expectations on Thursday.

Following the earnings release, the company’s stock rose 18.33% in pre-market trading, reflecting positive investor reactions to the furniture retailer’s performance amid a challenging macroeconomic environment.

The company reported adjusted earnings per share of $2.19 for the quarter ending February 1, 2026, beating the consensus estimate of $2.18 by $0.01. Revenue reached $248 million, surpassing the expected $242.8 million and up 2.7% from $241.5 million in the same period last year.

CEO Shawn Nelson stated, “Despite the macroeconomic challenges of 2026, including tariff pressures, economic uncertainty, and intense promotional activity in our category, we have effectively adapted and made meaningful progress toward our strategic goals.”

For fiscal 2026, net sales increased 2.4% to $697.1 million from $680.6 million in 2025. However, net income declined 64.8% to $4.1 million (diluted EPS of $0.28) from $11.6 million ($0.69 per share) last year. Gross margin contracted 210 basis points to 56.4%, mainly due to increased inbound shipping and tariff costs.

The company issued guidance for the first quarter of fiscal 2027, expecting revenue between $133 million and $139 million, with a midpoint of $136 million. The company also forecasted a loss per share for the quarter between $0.95 and $1.22.

For the full fiscal year 2027, Lovesac projects revenue between $700 million and $750 million, with a midpoint of $725 million. Full-year earnings per share are expected to range from $0.34 to $0.95, with a midpoint of $0.65.

At quarter’s end, the company held $101.9 million in cash and had no debt. The board authorized an additional $40 million share repurchase plan, bringing the total available amount to approximately $54.1 million.

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