Lovesac reported fiscal second-quarter net sales of $161.2 million, up 0.4% from a year earlier, while omni-channel comparable sales fell 1.9%, and the company lowered its full-year outlook as major product launches slipped toward the fourth quarter. The company said it received a $21 million benefit from IEEPA tariff refunds and related interest, of which $20 million was recognized in cost of merchandise sold, $300,000 reduced inventory and $700,000 was recorded as interest income. That recovery lifted reported gross margin by 1,200 basis points to 68.4% from 56.4% a year earlier, but excluding tariff recoveries gross margin was approximately 56%, down about 40 basis points year over year, and adjusted EBITDA excluding the $20 million refund benefit was a loss of $1.3 million versus positive $0.8 million a year earlier. Operating income was $10.9 million against a prior-year operating loss of $8.8 million, and net income totaled $7.4 million, or $0.51 per diluted share, versus a net loss of $6.7 million, or $0.45 per share, with diluted earnings per share including a net $0.86 benefit from tariff refunds. For fiscal 2027, Lovesac forecast net sales of $690 million to $710 million, including fourth-quarter revenue of $250.5 million to $260.5 million, full-year net income of $14.5 million to $18.5 million, adjusted EBITDA of $31.5 million to $35.5 million and diluted earnings per share of $0.98 to $1.26, while for the third quarter it expects net sales of $140 million to $150 million, a net loss of $9 million to $12 million and an adjusted EBITDA loss of $7 million to $10 million.
The Lovesac CompanyLovesac cut its fiscal 2027 outlook as major product launches slipped to Q4, with adjusted EBITDA excluding tariff refunds swinging to a $1.3M loss.
