Canaccord lowered its price target on The Lovesac Company to $20 from $22 on September 10 while keeping its Buy rating, after the company reported second-quarter fiscal 2027 results that landed in line with expectations. Lovesac posted net income of $7.4 million for the quarter, a swing from a net loss of $6.7 million a year earlier, and operating income of $10.9 million versus an operating loss of $8.8 million, though the improvement was largely driven by $21 million in IEEPA tariff refunds. Net sales rose 0.4% year over year on 14 net new showrooms, partly offset by a 1.9% decline in omni-channel comparable net sales and the closure of the company's Best Buy shop-in-shop locations, while gross margin expanded to 68.4% of net sales from 56.4%, a 1,200 basis point gain that included 1,240 basis points from tariff recoveries. The company lowered its full-year sales and adjusted EBITDA outlook, guiding to net sales of $690 million to $710 million and net income of $14.5 million to $18.5 million, citing product launch timing and the promotional environment, with key innovations now expected to contribute more meaningfully in the fourth quarter rather than the third. Analysts remain optimistic, with a consensus Buy rating and a median 12-month price target of $20 as of September 11, implying roughly 43.78% upside, even as short interest stood at 21.93% of the float as of August 31.
The Lovesac CompanyCanaccord cut its price target to $20 from $22 and Lovesac lowered full-year sales and EBITDA guidance after Q2 results.
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