Lovesac Q4 Profit Climbs, Sees Loss In Q1, Higher Results In FY26; Stock Climbs In Pre-market

(RTTNews) - Lovesac Co. (LOVE), a direct-to-consumer specialty furniture brand, on Thursday reported higher profit in its fourth quarter, despite weak net sales. Further, the company issued outlook, expecting loss in first quarter and higher profit and sales in fiscal 2026.

In pre-market activity on the Nasdaq, Lovesac shares are climbing around 16.3 percent to trade at $18.52, after gaining around 28 percent on Wednesday's regular trade.

Looking ahead, for the first quarter, the company currently expects net loss in the range of $10 million to $13 million, or basic loss per share in the range of $0.66 to $0.85.

Net sales for the quarter are expected in the range of $136 million to $142 million.

For fiscal 2026, the company projects net income in the range of $13 million to $22 million or earnings per share in the range of $0.80 to $1.36, and net sales in the range of $700 million to $750 million.

In fiscal 2025, net income was $11.6 million or $0.69 per share on net sales of $680.63 million.

Separately, Lovesac announced the appointment of Heidi Cooley as Chief Brand and Marketing Officer, effective April 23.

Cooley will be the first Chief Brand and Marketing Officer for Lovesac and will lead all aspects of marketing, eCommerce and brand strategy. She will report to Mary Fox, President, and serve on the company's Executive Leadership Team.

In the fourth quarter, net income was $35.3 million or $2.13 per share, up 14 percent from $31.0 million or $1.87 per share last year.

Adjusted EBITDA grew 11.4 percent to $53.9 million.

Total net sales decreased 3.6 percent to $241.5 million from last year's $250.5 million, primarily driven by a decrease of 9.4 percent in omni-channel comparable net sales, partially offset by the net addition of 27 new showrooms period over period.

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