Lovesac Reports Flat Q2 Sales and Adjusts Outlook Amid Tariff Refunds
The Lovesac Company (NASDAQ:LOVE) reported fiscal second-quarter net sales of $161.2 million, up slightly by 0.4% year-over-year but marked a decline in omni-channel comparable sales by 1.9%. The company noted strong demand for premium configurations above $6,000 growing at double-digit rates, while lower-priced products faced ongoing pressure from inflation and interest rate challenges. Lovesac's profitability was significantly boosted by a one-time $21 million benefit from IEEPA tariff refunds during the quarter. This led to an operating income of $10.9 million compared to a prior-year loss of $8.8 million, with gross margin rising sharply to 68.4%. However, excluding these refunds, adjusted EBITDA was in negative territory at -$1.3 million. The company revised its fiscal year outlook downward due to delayed product launches and ongoing pricing assessments. It now expects sales between $690 million–$710 million for FY2027 with adjusted EBITDA of $31.5 million–$35.5 million, primarily driven by Q4 performance.
Tickers: $LOVE
Topics: fiscal performance product launches sales outlook tariff refunds