The Lovesac Company · Q3 2025 earnings

Briefing

Net sales decreased due to a decline in omni-channel comparable net sales, though this was partially offset by the addition of new showrooms. Gross margin increased, driven by lower inbound transportation costs, while operating loss increased due to higher operating expenses.

Lovesac reported a decrease in net sales for Q3 2025, driven by a decline in omni-channel comparable net sales, despite an increase in the number of showrooms. The company experienced an increase in gross margin but also an increase in operating loss due to higher operating expenses. The company gained market share and strengthened its competitive position through product innovation and operational excellence.

• Net sales decreased by 2.7% to $149.9 million compared to the prior year period, primarily driven by an 8.3% decrease in omni-channel comparable net sales.
• Gross profit decreased slightly by 0.9% to $87.6 million, but gross margin increased by 110 basis points to 58.5%.
• Operating loss was $7.7 million, compared to $3.6 million in the prior year period.
• The company's cash and cash equivalents balance was $61.7 million as of November 3, 2024, compared to $37.7 million as of October 29, 2023.

Headline financials

Revenue & EPS history

The Company expects net sales in the range of $660 million to $680 million, Adjusted EBITDA in the range of $37.5 million to $48.5 million, and net income in the range of $4.5 million to $12.5 million for the full year of fiscal 2025. For the fourth quarter of fiscal 2025, the Company expects net sales in the range of $221 million to $241 million, Adjusted EBITDA in the range of $43 million to $55 million, and net income in the range of $28 million to $36 million.