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Get filing alertsLovesac swings to Q2 profit on tariff refunds; guides FY27 sales to $690-710M
Filed September 10, 2026 · Period ending September 10, 2026 · ~1 min read
Key Changes
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Net income swung to $7.4M, or $0.51 per diluted share, from a $6.7M loss a year ago, boosted by $0.86 per share of IEEPA tariff refunds.
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Gross margin expanded 1,200 bps to 68.4%, driven by tariff recoveries; excluding those, margin was 56.0%, down 40 bps year over year.
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Full-year FY27 guidance: net sales $690-710M, net income $14.5-18.5M, Adjusted EBITDA $31.5-35.5M, diluted EPS $0.98-1.26.
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Q2 net sales rose 0.4% to $161.2M, with 14 net new showrooms offset by a 1.9% decline in omni-channel comparable sales and Best Buy shop-in-shop closures.
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Q3 FY27 guidance: net sales $140-150M, net loss $9-12M, Adjusted EBITDA loss $7-10M, basic loss per share $0.62-0.83.
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Summary
Lovesac reported second-quarter fiscal 2027 results that swung to a profit, largely due to one-time tariff refunds. Net income was $7.4 million, or $0.51 per diluted share, compared with a net loss of $6.7 million a year earlier. The quarter included $0.86 per diluted share of net benefit from IEEPA tariff refunds, which also drove gross margin to 68.4% from 56.4% a year ago.
Excluding those recoveries, gross margin was 56.0%, down 40 basis points year over year, reflecting higher transportation costs. Net sales rose just 0.4% to $161.2 million, as 14 net new showrooms were offset by a 1.9% decline in omni-channel comparable sales and the closure of Best Buy shop-in-shop locations.
The company provided full-year guidance of $690 million to $710 million in net sales, net income of $14.5 million to $18.5 million, and Adjusted EBITDA of $31.5 million to $35.5 million. For the third quarter, it expects a net loss of $9 million to $12 million on sales of $140 million to $150 million. For retail investors, the headline profit is flattered by non-recurring tariff refunds, while underlying comparable sales declined and the company guided to a third-quarter loss. The full-year outlook implies a significant second-half earnings ramp, which will depend on showroom productivity and margin execution without further tariff benefits.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Lovesac issued a press release announcing Q2 FY2027 financial results for the quarter ended August 2, 2026.
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On September 10, 2026, The Lovesac Company, a Delaware corporation (the “Company”), issued a press release (the “Press Release”) announcing the Company’s financial results for the second quarter of fiscal year 2027, which ended August 2, 2026.
The Company announced its financial results for the second quarter of fiscal year 2027, which ended August 2, 2026. The press release is attached as Exhibit 99.1. The information is being furnished and is not deemed filed under the Exchange Act.
Event · Exhibit 99.1
Lovesac reports Q2 FY27 net sales of $161.2M, net income of $7.4M, and FY27 guidance of $690-710M sales.
Added in current filing · view on EDGAR →
Gross margin 68.4 % 56.4 % 1,200 bps
Gross margin expanded 1,200 basis points to 68.4% of net sales, primarily due to IEEPA tariff recoveries contributing 1,240 basis points and a 250 basis point improvement in product margin, partially offset by higher inbound and outbound transportation costs. Excluding tariff recoveries, gross margin was 56.0%, down 40 basis points year over year.
Added in current filing · view on EDGAR →
Net sales in the range of $690 million to $710 million.
The Company expects full-year fiscal 2027 net sales of $690 million to $710 million, net income of $14.5 million to $18.5 million, Adjusted EBITDA of $31.5 million to $35.5 million, and diluted EPS of $0.98 to $1.26 on approximately 14.6 million estimated diluted weighted average shares outstanding.
Added in current filing · view on EDGAR →
Net sales in the range of $140 million to $150 million.
For the third quarter of fiscal 2027, the Company expects net sales of $140 million to $150 million, a net loss of $9 million to $12 million, Adjusted EBITDA loss of $7 million to $10 million, and basic loss per share of $0.62 to $0.83 on approximately 14.5 million estimated basic weighted average shares outstanding.
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Figures/quotes linked to EDGAR · Narrative written by AI · Sep 11, 2026 · How we verify