Lovesac (NASDAQ:LOVE) Issues Earnings Results

Lovesac (NASDAQ:LOVE) posted its quarterly earnings data on Thursday. The company reported $2.19 earnings per share for the quarter, beating analysts’ consensus estimates of $2.18 by $0.01, RTT News reports. Lovesac had a net margin of 1.05% and a return on equity of 3.61%. The company’s quarterly revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.13 earnings per share.

Here are the key takeaways from Lovesac’s conference call:

• Fiscal 2026 results showed modest revenue growth to $697.1M with positive omni-channel comps and internet sales up ~12% in Q4, while full-year net income fell to $4.1M and gross margin was 56.4% — the company finished with a record cash balance (~$101.9M) and no debt.
• The company accelerated its brand evolution and product roadmap — launching the entry-level Snug platform, reengineering Sactionals, previewing a new high-end sectional, and planning a calendar 2027 launch into a whole new room, plus beginning Made in America manufacturing of Sactional seat inserts this summer.
• Gross margins were pressured by tariffs and transportation (Q4 GM down ~230 bps) and management baked continued tariff/shipping uncertainty into guidance: FY27 sales of $700–$750M, adjusted EBITDA of $33–$44M, and a Q1 loss driven by seasonality and delivery rollout timing.
• Go-to-market improvements are already showing traction: a digital-first marketing pivot, e‑commerce UX and AI upgrades, showroom incentive changes, expansion of resale via Loved by Lovesac (29 states), and planned national rollouts of room-of-choice and white‑glove delivery to boost acquisition and LTV.

Lovesac Price Performance

NASDAQ:LOVE traded up $2.62 during mid-day trading on Thursday, reaching $13.91. The stock had a trading volume of 518,332 shares, compared to its average volume of 270,775. The company has a market capitalization of $203.31 million, a price-to-earnings ratio of 60.46, a price-to-earnings-growth ratio of 0.37 and a beta of 2.35. Lovesac has a 1-year low of $10.33 and a 1-year high of $21.90. The stock’s 50 day simple moving average is $12.87 and its two-hundred day simple moving average is $14.24.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Maxim Group set a $26.00 price target on Lovesac in a research note on Friday, December 12th. Weiss Ratings restated a “sell (d)” rating on shares of Lovesac in a research note on Monday, December 29th. DA Davidson dropped their price objective on Lovesac from $24.00 to $18.00 and set a “buy” rating on the stock in a report on Thursday, December 11th. Canaccord Genuity Group cut their target price on Lovesac from $30.00 to $24.00 and set a “buy” rating on the stock in a research report on Friday, December 12th. Finally, Wall Street Zen cut Lovesac from a “hold” rating to a “strong sell” rating in a research note on Saturday, December 13th. Five investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $26.20.

Key Lovesac News

Here are the key news stories impacting Lovesac this week:

• Positive Sentiment: Q4 results beat expectations on the bottom line and showed year-over-year revenue growth: EPS $2.19 vs. consensus $2.18, Q4 net sales $248.0M (up 2.7% YoY) and FY net sales $697.1M. The report drove initial market optimism. The Lovesac Company Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Board expanded the share repurchase authorization by $40M, bringing total available to roughly $54M — a shareholder-friendly move that supports buyback-driven EPS accretion and likely contributed to the stock rally. The Lovesac Company Expands Share Repurchase Authorization by $40 Million
• Positive Sentiment: Market coverage highlighted the beat-plus-buyback combo and reported a strong intraday stock reaction, reinforcing momentum from the print. Lovesac stock surges 18% on fourth quarter earnings, revenue beat
• Neutral Sentiment: Analyst notes and previews ahead of the print showed some recent estimate changes; coverage will determine whether guidance or analyst revisions sustain the move. Lovesac gears up for Q4 print; here are the recent forecast changes
• Negative Sentiment: Profitability metrics remain thin (net margin ~1.05%, ROE ~3.6%) and the EPS beat was only $0.01 — the print shows modest underlying profit improvement, leaving room for concern if revenue or margin trends soften. Press Release / Earnings Details
• Neutral Sentiment: Reported short-interest data in recent feeds is inconsistent/erroneous (shows zeros/NaN), so there’s no clear short-squeeze signal from the public short-interest reads. Coverage of Q4 beat and market reaction

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of LOVE. AQR Capital Management LLC grew its position in shares of Lovesac by 391.8% in the 1st quarter. AQR Capital Management LLC now owns 111,727 shares of the company’s stock worth $2,031,000 after acquiring an additional 89,007 shares in the last quarter. Millennium Management LLC raised its position in shares of Lovesac by 344.8% during the 1st quarter. Millennium Management LLC now owns 302,291 shares of the company’s stock valued at $5,496,000 after acquiring an additional 234,324 shares in the last quarter. Empowered Funds LLC lifted its stake in Lovesac by 8.1% during the first quarter. Empowered Funds LLC now owns 55,925 shares of the company’s stock worth $1,017,000 after purchasing an additional 4,200 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in Lovesac by 756.5% during the second quarter. JPMorgan Chase & Co. now owns 58,885 shares of the company’s stock worth $1,072,000 after purchasing an additional 52,010 shares during the last quarter. Finally, Rhumbline Advisers boosted its holdings in Lovesac by 15.9% in the second quarter. Rhumbline Advisers now owns 24,550 shares of the company’s stock worth $447,000 after purchasing an additional 3,376 shares during the period. Institutional investors own 91.32% of the company’s stock.

About Lovesac

Lovesac, trading on NASDAQ under the symbol LOVE, is an American furniture company known for its modular seating systems and distinctive foam-filled “Sacs.” Founded in 1995 by Shawn Nelson, the company has built a reputation for innovative design that emphasizes comfort, durability and adaptability. Its core offerings include Sactionals—customizable sectional sofas assembled from individual “Sactional” cubes—and the original Lovesac Sacs, large fabric-covered bean bag chairs available in a variety of sizes and materials.

In addition to seating solutions, Lovesac has expanded into home entertainment products with the introduction of the Stage, a modular soundbar system designed to integrate seamlessly with Sactionals.