Quarterly ResultJun 11, 2026, 07:06 AM
Lovesac Q1 Net Sales Flat at $138.2M; Full-Year Outlook Maintained
AI Summary
Lovesac Co reported Q1 FY27 results with net sales slightly down 0.1% to $138.2M and a net loss of $11.1M ($0.76/share). The company cited the closure of Best Buy shops and a decrease in comparable net sales as primary drivers for the revenue dip. Gross margin also decreased due to increased transportation costs. Despite these challenges, Lovesac provided an optimistic full-year outlook, projecting net sales between $700M and $740M and a net income of $5M to $12M. The company also highlighted strategic initiatives like new product launches and domestic production of Sactionals seat inserts.
Key Highlights
- Net sales decreased 0.1% to $138.2M in Q1 FY27, impacted by closure of Best Buy shops.
- Gross margin declined 160 bps to 52.1% due to higher transportation costs, partially offset by product margin.
- Net loss widened to $11.1M ($0.76/share) from $10.8M ($0.73/share) in Q1 FY26.
- Adjusted EBITDA was a loss of $10.5M, compared to a loss of $8.4M in the prior year.
- Full-year FY27 outlook: Net sales $700M-$740M, Net income $5M-$12M.
- Cash and cash equivalents stood at $57.0M as of May 3, 2026, down from $101.9M at Feb 1, 2026.
- Merchandise inventory decreased to $109.3M from $124.9M year-over-year.
Price Impact
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