revenue $138.2M, net income -$11.1M. Lovesac Q1 flat revenue masks comp decline, margin squeeze from tariffs and logistics

Filed June 11, 2026 · Period ending May 3, 2026 · Compared to 10-Q Jun 12, 2025 · ~2 min read

Key Changes

• high

  Gross margin compressed 160bp to 52.1% as inbound transportation and tariff costs surged 380bp, overwhelming 330bp product margin gains from pricing and cost cuts. Company filed for tariff refunds in April 2026 but has not recognized any benefit due to uncertainty.

  MD&A: Gross Margin & Tariff Refund verify on EDGAR →
• high

  Omni-channel comparable sales declined 1.0% after 2.8% growth in prior year Q1. Both new and repeat customer counts fell (down 2.5% and 1.2%), signaling weakening demand despite new showroom openings keeping total revenue flat.

  MD&A: Comparable Sales & Customer Metrics verify on EDGAR →
• high

  Net loss widened to $11.1M from $10.8M despite flat revenue, driven by margin compression and higher SG&A as percentage of sales (49.6% vs. 48.5%), partially offset by 10.7% reduction in advertising spend.

  MD&A: Operating Results verify on EDGAR →