Lovesac Q4 sales beat estimates, helped by showroom expansion

Lovesac Co

26/03/2026 11:11

Overview

U.S. home furniture brand's Q4 sales rose 2.7% yr/yr, beating analyst expectations

Q4 adjusted EBITDA missed consensus, net income declined yr/yr

Company announced new $40 mln share repurchase authorization

Outlook

Lovesac sees FY27 net sales between $700 mln and $750 mln

Company expects FY27 net income of $5 mln to $14 mln

Lovesac forecasts Q1 net sales between $133 mln and $139 mln

Result Drivers

SHOWROOM EXPANSION - Q4 sales growth was mainly attributed to the net addition of 21 new showrooms and a slight increase in omni-channel comparable sales

HIGHER TRANSPORTATION AND TARIFF COSTS - Gross margin declined due to increased inbound transportation and tariff costs, partially offset by product margin improvements from price increases and cost reductions

INCREASED SG&A COSTS - SG&A expenses rose in Q4 due to higher incentive compensation, new product innovation costs, and other overhead

Company press release: ID:nGNX6zqr3Q

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$248 mln
$242.78 mln (6 Analysts)
Q4 EPS
$2.19
Q4 Net Income
$32.10 mln
Q4 Adjusted EBITDA
Miss
$49.60 mln
$51.92 mln (6 Analysts)
Q4 Gross Margin
58.10%


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 "buy"

Wall Street's median 12-month price target for Lovesac Co is $25.00, about 121.4% above its March 25 closing price of $11.29

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)