Lovesac Reports Q2 Earnings with Mixed Performance Amid Tariff Refunds
Lovesac (LOVE) reported second-quarter results for fiscal year 2027, showing total net sales of $161.2 million—a slight increase driven by new showroom locations but offset by a decline in omni-channel comparable sales. Gross margin improved significantly to 68.4%, largely due to the recognition of $20 million in IEEPA tariff recoveries. However, adjusted gross margin fell slightly to 56.0% when excluding one-time benefits. Net income reached $7.4 million or $0.51 per diluted share, with a notable contribution from tariff refunds. Adjusted EBITDA turned negative at a loss of $1.3 million compared to prior-year gains. The company reported showroom sales growth supported by 14 new locations and improved conversion rates but faced declines in internet and other net sales due to strategic shifts. Lovesac revised its full-year guidance, projecting adjusted EBITDA between $31.5 million and $35.5 million with expected operating leverage from Q4 product launches.
Tickers: $LOVE
Topics: finance retail sales_performance