Lovesac posted a smaller-than-expected Q1 loss of $0.76 per share and cut its full-year sales guidance by $10 million due to tariff pressures.
Lovesac reported a first-quarter net loss of $11.1 million, or $0.76 per share, narrower than the $1.05 per share loss analysts had forecast. Revenue reached $138.2 million, slightly above the $136.3 million consensus estimate but nearly flat year-over-year.
The company reduced its fiscal 2027 net sales guidance to a range of $700 million to $740 million, trimming $10 million from the top end of its prior forecast. Gross margin contracted 160 basis points to 52.1%, driven by 380 basis points in higher inbound transportation and tariff costs and 110 basis points in outbound logistics expenses.
Lovesac attributed the sales decline to the closure of Best Buy shop-in-shop locations and a 1.0% drop in omni-channel comparable net sales, partially offset by 14 new showrooms. The company ended the quarter with 281 showrooms.