Lovesac (NASDAQ:LOVE) Issues Quarterly Earnings Results

Lovesac (NASDAQ:LOVE) posted its quarterly earnings data on Thursday. The company reported $2.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.00 by $0.19, RTT News reports. The business had revenue of $248.05 million for the quarter, compared to the consensus estimate of $242.77 million. Lovesac had a net margin of 0.58% and a return on equity of 2.07%. The company’s revenue was up 2.7% compared to the same quarter last year. During the same period last year, the firm posted $2.13 earnings per share.

Here are the key takeaways from Lovesac’s conference call:

• Fiscal 2026 results showed modest revenue growth to $697.1M with positive omni-channel comps and internet sales up ~12% in Q4, while full-year net income fell to $4.1M and gross margin was 56.4% — the company finished with a record cash balance (~$101.9M) and no debt.
• The company accelerated its brand evolution and product roadmap — launching the entry-level Snug platform, reengineering Sactionals, previewing a new high-end sectional, and planning a calendar 2027 launch into a whole new room, plus beginning Made in America manufacturing of Sactional seat inserts this summer.
• Gross margins were pressured by tariffs and transportation (Q4 GM down ~230 bps) and management baked continued tariff/shipping uncertainty into guidance: FY27 sales of $700–$750M, adjusted EBITDA of $33–$44M, and a Q1 loss driven by seasonality and delivery rollout timing.
• Go-to-market improvements are already showing traction: a digital-first marketing pivot, e‑commerce UX and AI upgrades, showroom incentive changes, expansion of resale via Loved by Lovesac (29 states), and planned national rollouts of room-of-choice and white‑glove delivery to boost acquisition and LTV.

Lovesac Trading Down 1.7%

Shares of LOVE opened at $13.53 on Friday. Lovesac has a 12-month low of $10.33 and a 12-month high of $21.90. The firm has a market capitalization of $197.81 million, a P/E ratio of 46.66, a P/E/G ratio of 0.89 and a beta of 2.35. The firm has a 50-day moving average price of $12.78 and a 200 day moving average price of $14.19.

Trending Headlines about Lovesac

Here are the key news stories impacting Lovesac this week:

• Positive Sentiment: Q4 results topped expectations: EPS $2.19 vs. $2.00 consensus and revenue of $248.1M vs. $242.8M, and management gave an upbeat FY26 outlook — this drove initial upside in the stock. Lovesac shares rally on Q4 sales and profit beat, upbeat FY26 outlook
• Positive Sentiment: Board expanded the share repurchase authorization by $40M (total ≈ $54M), a capital-return move that signals management confidence and can support the stock. The Lovesac Company Expands Share Repurchase Authorization by $40 Million
• Positive Sentiment: Market reaction: coverage noted an immediate sharp rally (reports of ~18% intraday jump) after the earnings/revenue beat, showing investors rewarded the print initially. Lovesac stock surges 18% on fourth quarter earnings, revenue beat
• Neutral Sentiment: Call/transcript provides color on inventory, channel mix and margin drivers—useful for modeling but not a single catalyst. Investors should read the transcript for detail on guidance drivers. Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst/metrics coverage compares key Q4 metrics vs. estimates (traffic, AOV, margins) — useful for EPS/FCF modeling but mixed signals on sustainable growth. Lovesac (LOVE) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Tariff headwinds: a local Stamford report highlights that tariffs have reduced annual profit, reinforcing concerns about cost pressure, margin squeeze and the potential for earnings vulnerability despite the beat. That likely tempered follow-through buying. Tariffs dent annual profit of Stamford-based furniture retailer Lovesac

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on LOVE shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Lovesac in a research note on Monday, December 29th. Maxim Group set a $26.00 price objective on shares of Lovesac in a report on Friday, December 12th. Canaccord Genuity Group lowered their target price on Lovesac from $30.00 to $24.00 and set a “buy” rating on the stock in a report on Friday, December 12th. DA Davidson dropped their price target on Lovesac from $24.00 to $18.00 and set a “buy” rating for the company in a research report on Thursday, December 11th. Finally, Wall Street Zen cut Lovesac from a “hold” rating to a “strong sell” rating in a report on Saturday, December 13th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $26.20.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LOVE. Arrowstreet Capital Limited Partnership boosted its position in shares of Lovesac by 41.9% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 375,883 shares of the company’s stock worth $6,364,000 after purchasing an additional 110,953 shares during the period. Invenomic Capital Management LP purchased a new position in shares of Lovesac during the fourth quarter worth $5,350,000. Millennium Management LLC grew its stake in shares of Lovesac by 378.9% in the fourth quarter. Millennium Management LLC now owns 327,477 shares of the company’s stock valued at $4,830,000 after buying an additional 259,097 shares in the last quarter. Bridgeway Capital Management LLC grew its stake in shares of Lovesac by 252.8% in the second quarter. Bridgeway Capital Management LLC now owns 306,687 shares of the company’s stock valued at $5,582,000 after buying an additional 219,762 shares in the last quarter. Finally, MML Investors Services LLC raised its holdings in shares of Lovesac by 24.7% in the 4th quarter. MML Investors Services LLC now owns 303,283 shares of the company’s stock valued at $4,473,000 after buying an additional 60,034 shares during the period. 91.32% of the stock is currently owned by hedge funds and other institutional investors.

Lovesac Company Profile

Lovesac, trading on NASDAQ under the symbol LOVE, is an American furniture company known for its modular seating systems and distinctive foam-filled “Sacs.” Founded in 1995 by Shawn Nelson, the company has built a reputation for innovative design that emphasizes comfort, durability and adaptability. Its core offerings include Sactionals—customizable sectional sofas assembled from individual “Sactional” cubes—and the original Lovesac Sacs, large fabric-covered bean bag chairs available in a variety of sizes and materials.

In addition to seating solutions, Lovesac has expanded into home entertainment products with the introduction of the Stage, a modular soundbar system designed to integrate seamlessly with Sactionals.