Lovesac reported record second quarter revenue of $161.2 million on September 10, its highest Q2 total ever, though the 0.4% sales increase came almost entirely from showrooms rather than higher-margin online orders. A $20 million tariff refund lifted gross margin by 1,200 basis points to 68.4%, masking an underlying business that actually lost money once that windfall is stripped out. Configurations priced above $6,000 grew by double digits, and showroom net sales climbed 4.6% to $114.1 million, helped by 14 net new locations and a double-digit jump in conversion rates, while the Snugg platform pushed other products revenue up 198.2%. Below the $6,000 line, omni-channel comparable sales fell 1.9%, internet sales dropped 5.3%, Sacs sales fell 8.6%, and the exit of the Best Buy shop-in-shop partnership cut other net sales by 23.2%; adjusted EBITDA was a loss of $1.3 million versus income of $0.8 million a year earlier. Management guided third quarter sales to $140 million to $150 million with an expected net loss of $9 million to $12 million and an adjusted EBITDA loss of $7 million to $10 million, as four major launches and a national delivery rollout are set for the second half.
The Lovesac CompanyRecord Q2 revenue of $161.2M and a $20M tariff refund lifting gross margin to 68.4%, but the underlying business lost money and Q3 guidance points to a net loss of $9-12M.
Best Buy Co. IncLovesac's exit from the Best Buy shop-in-shop partnership cut its other net sales by 23.2%, implying lost placement for Best Buy's in-store vendor program.
