Lovesac (NASDAQ:LOVE) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Lovesac (NASDAQ:LOVE) released its quarterly earnings results on Thursday. The company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.19, RTT News reports. The firm had revenue of $248.05 million for the quarter, compared to analysts’ expectations of $242.77 million. Lovesac had a net margin of 1.05% and a return on equity of 3.61%. The business’s quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm 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 Trading Up 21.9%

LOVE opened at $13.76 on Friday. The stock has a market capitalization of $201.13 million, a P/E ratio of 59.83, a PEG ratio of 0.36 and a beta of 2.35. The stock has a 50-day moving average price of $12.82 and a 200-day moving average price of $14.24. Lovesac has a 12-month low of $10.33 and a 12-month high of $21.90.

Institutional Trading of Lovesac

A number of hedge funds have recently bought and sold shares of the company. Invesco Ltd. boosted its stake in Lovesac by 32.3% in the fourth quarter. Invesco Ltd. now owns 73,880 shares of the company’s stock worth $1,090,000 after buying an additional 18,027 shares in the last quarter. Corient Private Wealth LLC raised its stake in shares of Lovesac by 139.4% during the fourth quarter. Corient Private Wealth LLC now owns 278,863 shares of the company’s stock worth $4,113,000 after acquiring an additional 162,356 shares in the last quarter. Empowered Funds LLC raised its stake in shares of Lovesac by 10.8% during the fourth quarter. Empowered Funds LLC now owns 76,547 shares of the company’s stock worth $1,129,000 after acquiring an additional 7,483 shares in the last quarter. XTX Topco Ltd bought a new stake in shares of Lovesac in the 4th quarter worth approximately $149,000. Finally, Millennium Management LLC lifted its holdings in shares of Lovesac by 378.9% in the 4th quarter. Millennium Management LLC now owns 327,477 shares of the company’s stock worth $4,830,000 after acquiring an additional 259,097 shares during the last quarter. Institutional investors own 91.32% of the company’s stock.

Analysts Set New Price Targets

LOVE has been the subject of several recent analyst reports. Canaccord Genuity Group reduced their target price on Lovesac from $30.00 to $24.00 and set a “buy” rating for the company in a research report on Friday, December 12th. DA Davidson dropped their price target on Lovesac from $24.00 to $18.00 and set a “buy” rating for the company in a research report on Thursday, December 11th. Maxim Group set a $26.00 price objective on Lovesac in a report on Friday, December 12th. Weiss Ratings restated a “sell (d)” rating on shares of Lovesac in a research report on Monday, December 29th. Finally, Wall Street Zen downgraded shares of Lovesac from a “hold” rating to a “strong sell” rating in a research note on Saturday, December 13th. Five analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Lovesac presently has a consensus rating of “Moderate Buy” and a consensus price target of $26.20.

Key Lovesac News

Here are the key news stories impacting Lovesac this week:

• Positive Sentiment: Q4 earnings and revenue topped estimates (EPS $2.19 vs. $2.18 est.; revenue ~$248.0M vs. ~$242.8M est.), with revenue up ~2.7% year-over-year — management followed the print with an upbeat FY26 outlook that helped lift sentiment. Lovesac shares rally on Q4 sales and profit beat, upbeat FY26 outlook
• Positive Sentiment: Board increased share repurchase authorization by $40M (total ~ $54M), signaling management confidence and creating direct buyback support for the stock. The Lovesac Company Expands Share Repurchase Authorization by $40 Million
• Positive Sentiment: Management commentary on the earnings call emphasized execution and navigating a challenging consumer backdrop while pursuing profitable growth — that tone reinforced the upbeat guidance and helped push shares higher. The Lovesac Co (LOVE) Q4 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst metric reviews show the quarter beat consensus but growth was modest (low single-digit revenue growth), so upside depends on sustained margin expansion and execution vs. peers. Lovesac (LOVE) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Valuation and profitability remain concerns: the stock trades at a high P/E relative to earnings power and the company reported a thin net margin and modest ROE, which could cap upside if growth or margins disappoint. Lovesac (LOVE) stock profile

Lovesac Company Profile

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.