Couch maker Lovesac's Q2 sales rise 2.5%, just edging past beat estimates

Lovesac Co

11/09/2025 12:09

Corrects to remove extraneous word "beat" in headline

Overview

Lovesac fiscal Q2 net sales rise 2.5%, beating analyst expectations, per LSEG data

Adjusted EBITDA for fiscal Q2 beats consensus, despite ongoing category headwinds

Company reports net loss of $6.7 mln, impacted by higher transportation costs

Outlook

Lovesac sees full-year net sales between $710 mln and $740 mln

Company expects full-year adjusted EBITDA between $42 mln and $55 mln

Lovesac projects Q3 net sales between $151 mln and $161 mln

Company anticipates Q3 adjusted EBITDA loss of $1 mln to $7 mln

Result Drivers

SALES GROWTH - Net sales increased 2.5% in Q2, driven by a 0.9% rise in omni-channel sales and 16 new showrooms

GROSS MARGIN DECLINE - Gross margin fell 260 bps due to higher transportation costs and increased promotional discounting

SG&A REDUCTION - SG&A expenses decreased by 2.1% due to lower professional fees and credit card costs, offset by Best Buy partnership termination costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight beat
$160.50 mln
$160.20 mln (5 Analysts)
Q2 EPS
-$0.45
Q2 Net Income
-$6.70 mln
Q2 Adjusted EBITDA
Beat
$800,000
-$5.49 mln (5 Analysts)
Q2 Gross Margin
56.4%
Q2 Basic EPS
-$0.45


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home furnishings peer group is "hold."

Wall Street's median 12-month price target for Lovesac Co is $28.00, about 25.9% above its September 10 closing price of $20.75

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX35mz9t

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)