Lovesac (NASDAQ:LOVE) Releases Earnings Results, Beats Estimates By $0.01 EPS

Lovesac (NASDAQ:LOVE) posted its quarterly earnings results on Thursday. The company reported $2.19 EPS for the quarter, beating the consensus estimate 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%. During the same period last year, the firm posted $2.13 earnings per share. Lovesac’s revenue for the quarter was up 2.7% on a year-over-year basis.

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 Stock Performance

Shares of LOVE traded up $2.62 during mid-day trading on Thursday, reaching $13.91. 518,332 shares of the company’s stock traded hands, compared to its average volume of 270,775. The business’s 50-day moving average price is $12.87 and its 200-day moving average price is $14.24. The stock has a market capitalization of $203.31 million, a P/E ratio of 60.46, a price-to-earnings-growth ratio of 0.37 and a beta of 2.35. Lovesac has a 12 month low of $10.33 and a 12 month high of $21.90.

More 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 Trading of Lovesac

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC raised its stake in Lovesac by 391.8% during the 1st quarter. AQR Capital Management LLC now owns 111,727 shares of the company’s stock valued at $2,031,000 after acquiring an additional 89,007 shares in the last quarter. Millennium Management LLC grew its stake in shares of Lovesac by 344.8% in the first quarter. Millennium Management LLC now owns 302,291 shares of the company’s stock worth $5,496,000 after purchasing an additional 234,324 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of Lovesac by 8.1% during the first quarter. Empowered Funds LLC now owns 55,925 shares of the company’s stock valued at $1,017,000 after purchasing an additional 4,200 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of Lovesac by 756.5% during the second quarter. JPMorgan Chase & Co. now owns 58,885 shares of the company’s stock valued at $1,072,000 after purchasing an additional 52,010 shares during the period. Finally, Rhumbline Advisers raised its stake in shares of Lovesac by 15.9% during the second quarter. Rhumbline Advisers now owns 24,550 shares of the company’s stock valued at $447,000 after purchasing an additional 3,376 shares in the last quarter. 91.32% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

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

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.