News
Earnings · Home Furnishings · Lovesac · Retail
The Lovesac Company reported a widened net loss of $11.1 million, or $0.76 per share, for the first quarter of fiscal 2027, compared to a $10.8 million loss, or $0.73 per share, in the prior year, while refining its full-year fiscal 2027 outlook.
Net sales slightly decreased by 0.1% to $138.2 million, primarily due to the closure of Best Buy shop-in-shop locations and a 1.0% decrease in omni-channel comparable net sales, partially offset by 14 net new showrooms. Gross margin declined by 160 basis points to 52.1%, driven by increased inbound transportation and tariff costs, despite product margin improvements from price increases and cost reduction initiatives.
CEO Shawn David Nelson highlighted disciplined execution, modest market share gains, and a robust product innovation roadmap, including new Sactionals platforms and a Made in America initiative. For fiscal 2027, Lovesac projects net sales between $700 million and $740 million and net income between $5 million and $12 million.
