Modular sofa maker Lovesac misses Q3 sales estimates

Lovesac Co

11/12/2025 12:12

Overview

 Lovesac's fiscal Q3 net sales rose 0.2% but missed analyst expectations

Adjusted EBITDA for fiscal Q3 missed analyst expectations

Company's results driven by showroom expansion and marketing strategy adjustments

Outlook

Company expects full-year net sales between $685 mln and $705 mln

Lovesac projects fourth-quarter net sales of $236 mln to $256 mln

Company anticipates full-year net income between $2 mln and $8 mln

Result Drivers

SHOWROOM EXPANSION - Net sales increased slightly due to the addition of 17 new showrooms, despite a decline in omni-channel comparable net sales

HIGHER COSTS - Gross profit and margin decreased due to increased transportation and tariff costs, partially offset by vendor cost reductions

MARKETING CAMPAIGN - Increased advertising and marketing expenses were driven by a new product marketing campaign

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$150.20 mln
$154.15 mln (6 Analysts)
Q3 EPS
-$0.72
Q3 Net Income
-$10.60 mln
Q3 Adjusted EBITDA
Miss
-$6 mln
-$3.85 mln (6 Analysts)
Q3 Gross Margin
56.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home furnishings peer group is "hold."

Wall Street's median 12-month price target for Lovesac Co is $29.00, about 111.1% above its December 10 closing price of $13.74

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX28rkGP

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)