The earnings call reflects a challenging quarter for Lovesac with a decline in net sales and increased expenses. However, the company has managed to gain market share and maintain a strong cash position. Product innovations are receiving positive feedback, indicating potential for future growth, although the current consumer environment remains uncertain.
Company Guidance
During the Lovesac Q3 2025 earnings call, the company reported total net sales of $149.9 million, reflecting a year-over-year decline of 2.7%. The omnichannel comparable net sales decreased by 8.3%, though this was partially offset by contributions from new and non-comparable touchpoints. Adjusted EBITDA for the quarter was $2.7 million, slightly higher than the previous year. The company is facing headwinds, particularly in the pre-election period, impacting average order size conversions despite encouraging growth in quotes for large setups. Gross margin increased by 110 basis points to 58.5% of net sales, driven by decreases in inbound and outbound transportation costs, although product margins decreased due to higher promotional discounting. Lovesac's guidance for the full fiscal year 2025 anticipates net sales between $660 million and $680 million, with adjusted EBITDA projected to be between $37.5 million and $48.5 million. The outlook reflects ongoing challenges within the home category, despite positive developments in product innovation and market share gains.
Market Share Gains and Cash Position
Despite the challenging category environment, Lovesac achieved market share gains with the highest pre-holiday cash balance in years.
Product Innovation Success
Successful entry into new product categories including a power recliner and 'any table,' with the recliner exceeding expectations in terms of internal attachment rates and customer feedback.
Expansion and Omnichannel Growth
Continued expansion with 28 new showrooms and an 11.2% increase in net sales on a two-year basis.
Improved Gross Margin
Gross margin increased by 110 basis points to 58.5% due to decreases in inbound transportation costs and outbound transportation and warehousing costs.
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The Lovesac Company (LOVE) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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LOVE Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Dec 12, 2024
$37.68
$25.74
-31.69%
Sep 12, 2024
$21.02
$25.50
+21.31%
Jun 13, 2024
$25.98
$26.26
+1.08%
Apr 11, 2024
$23.34
$20.73
-11.18%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does The Lovesac Co (LOVE) report earnings?
The Lovesac Co (LOVE) is schdueled to report earning on Apr 10, 2025, TBA Not Confirmed.
What is The Lovesac Co (LOVE) earnings time?
The Lovesac Co (LOVE) earnings time is at Apr 10, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.