Lovesac Posts $32.1M Q4 Profit, Guides Q1 Revenue of $133M–$139M
Lovesac delivered Q4 net income of $32.1 million (EPS $2.19) on $248 million revenue, driven by a 3% omni-channel sales gain from new showrooms that offset a 45.4% drop in pop-up shop sales. The company guided Q1 revenue of $133 million–$139 million and full-year revenue of $700 million–$750 million.
1. Q4 Financial Performance
Lovesac delivered Q4 net income of $32.1 million (EPS $2.19) on $248 million revenue. Omni-channel comparable net sales rose nearly 3%, outpacing a 3.3% decline in the broader seating category.
2. Channel Performance
Sales from pop-up shops and the Love by Lovesac resale program declined 45.4% following Best Buy location closures. This weakness was offset by contributions from new permanent showrooms.
3. Forward Guidance
The company forecast Q1 revenue of $133 million–$139 million and full-year revenue of $700 million–$750 million, with full-year EPS projected between $0.34 and $0.95.
4. Margin Improvement Plan
Lovesac is reshoring manufacturing to the U.S. to reduce tariff exposure, stabilize shipping costs and target significant gross margin gains by fiscal 2028.