Lovesac Cuts Earnings Guidance Amid Mixed Q2 Results; Analysts Lower Price Targets but Maintain Buy Ratings
The Lovesac Company (NASDAQ:LOVE) reported second-quarter fiscal 2027 results on September 10, 2026. The company achieved record quarterly net sales of $161.2 million and turned a profit with net income of $7.4 million ($0.51 per diluted share), compared to a loss in the prior year. However, this was partly driven by an IEEPA tariff refund benefit of $0.86 per share. Omni-channel comparable sales declined 1.9%, signaling softness in lower-end demand. Three analysts from Canaccord Genuity, Roth Capital Partners, and DA Davidson all maintained their Buy ratings but reduced price targets due to weaker-than-expected guidance adjustments by management. The new CFO's conservative outlook is seen as a strategic shift rather than an operational decline. Despite this, the core business remains under pressure with gross margin slipping 40 basis points year-over-year when excluding tariff benefits and adjusted EBITDA turning negative at $1.3 million. Lovesac ended Q2 with strong liquidity of $68.8 million in cash but faces challenges ahead as it prepares for a heavy product launch schedule later this fiscal year.
Tickers: $LOVE
Topics: Buy Ratings Earnings Stock Analysis