Lovesac has released its financial results for Q2 2026, showing sales growth alongside an increase in losses.
Lovesac's Q2 Financial Results
In Q2 2026, Lovesac reported a 2.5% increase in net sales, amounting to $160.5 million compared to $156.6 million last year. This growth was driven by a 0.9% increase in comparable net sales and the opening of 16 new showrooms. However, the company's gross profit saw a slight decline of 1.9%, totaling $90.6 million, with a gross margin decrease of 260 basis points, attributed to rising transportation costs and promotional discounting.
Company Outlook and Strategies
Despite the sales growth, Lovesac reported a net loss of $6.7 million, or $0.45 per share, exceeding the expected loss of $0.72 per share. This loss is more significant than the $5.9 million loss from the same quarter last year. Operating expenses decreased slightly by 1.3%, reflecting reductions in professional fees and overhead costs, though these were partially offset by impairment charges and increased payroll expenses. Looking ahead, Lovesac projects net sales between $710 million and $740 million.
Conclusions on Financial Results and Forecasts
The company expects net sales for the upcoming third quarter to be between $151 million and $161 million, with an Adjusted EBITDA loss ranging from $1 million to $7 million. The projected net loss is expected to fall between $8 million and $12 million. Lovesac remains focused on innovation and brand evolution, aiming to establish itself as a multifaceted home brand.
These financial results reflect a mixed performance from Lovesac, which continues to face industry challenges while maintaining an optimistic outlook for future results.
