Lovesac ($LOVE) Q4 Revenue Tops Estimates with $248.05 Million

Lovesac (NASDAQ: LOVE) announced its fourth-quarter financial results for 2026, highlighting a revenue achievement that exceeded market expectations.

The company reported revenue of $248.05 million, reflecting a 2.72 percent increase from $241.49 million recorded a year earlier. Earnings per share were $2.19, surpassing the anticipated $2.01 per share, and showing a 2.82 percent growth from $2.13 per share in the same quarter last year.

In the fourth quarter of fiscal 2026, gross margin decreased by 230 basis points to 58.1 percent of net sales from 60.4 percent in the prior year period. Operating margin was 18.2 percent of net sales compared to 19.7 percent in the same period last year.

For the fiscal year 2026, net sales increased by $16.5 million, or 2.4 percent, compared to fiscal 2025. Net income was $0.28 per diluted share, down from $0.69 per diluted share the previous year.

Full year gross margin decreased by 210 basis points to 56.4 percent from 58.5 percent in fiscal 2025. Operating margin was 0.8 percent compared to 2.0 percent in fiscal 2025.

For the upcoming first quarter of 2027, Lovesac forecasts a loss per share ranging from $-1.22 to $-0.95, which is broader than the expected loss of $-0.81 per share. Revenue is projected between $133.00 million to $139.00 million, below the analyst forecast of $144.45 million.

For the full fiscal year 2027, earnings are expected between $0.34 to $0.95 per share, compared to the analyst estimate of $0.78 per share. Revenue for the fiscal year is anticipated to range from $700.00 million to $750.00 million, surrounding the expected $735.74 million.

Shawn Nelson, Chief Executive Officer, said, “Fiscal 2026 was a pivotal year for Lovesac. We made substantial progress on our evolution from a product-driven company into a multi-platform, multi-room, lifestyle brand. A brand that we believe can be the most loved home brand in America in short order, and one day, the most loved brand in America full stop.”