Lovesac reported fourth‑quarter and full‑year 2026 results that ended February 1, 2026, with net sales of $248.0 million, a 2.7 % year‑over‑year increase, and earnings per share of $2.19. The earnings beat the consensus estimate of $2.00–$2.01 by $0.18–$0.19, a 9.5 % lift, reflecting strong demand in core segments and disciplined cost management.
Revenue growth was driven by a 12.3 % rise in internet sales and a 3.5 % increase in showroom sales. The shift toward higher‑margin online sales helped offset the impact of higher inbound transportation and tariff costs, as well as increased outbound transportation and warehousing expenses, which contributed to margin compression.
Gross margin fell 230 basis points to 58.1 % from the prior year, while operating margin declined, largely due to the transportation and tariff pressures mentioned above. Despite these headwinds, the company maintained profitability and a healthy balance sheet.
The company expanded its share‑repurchase program by $40 million, bringing the total authorized buyback amount to approximately $54.1 million. The move signals management’s confidence in the business outlook and its intent to return capital to shareholders while preserving a strong balance sheet.
Guidance for the first quarter of fiscal 2027 projects net sales of $133 million to $139 million, below analyst expectations, and an adjusted EBITDA loss and net loss per share. Full‑year fiscal 2027 guidance forecasts net sales of $700 million to $750 million, adjusted EBITDA of $33 million to $44 million, and net income of $5 million to $14 million, indicating a cautious outlook amid macro headwinds.
CEO Shawn Nelson highlighted the challenging macro environment, noting tariff pressures, economic uncertainty, and intense promotional activity, yet emphasized market‑share gains, full‑year profitability, positive free cash flow, a record cash balance, and no debt. CFO Keith Siegner underscored the company’s healthy balance sheet and liquidity, expressing confidence in funding strategic growth while returning capital to shareholders.
Investors responded positively to the earnings beat, revenue beat, and share‑repurchase expansion, reflecting confidence in the company’s execution and outlook.
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