10-Q · June 11, 2026
Lovesac's Q1 2026 results showed a slight revenue decline to $138.2 million, slightly below estimates, while the EPS loss of $0.73 improved from expectations of a larger loss. Overall operating losses increased amid…
Earnings analysis · 10-Q
LOVE earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
The quarter was mixed: revenue of $161.245 million modestly missed expectations, while diluted EPS of $0.51 materially exceeded consensus, aided by $21.0 million of IEEPA tariff refunds. Gross margin improved to 56.4%…
Read full summary
The quarter was mixed: revenue of $161.245 million modestly missed expectations, while diluted EPS of $0.51 materially exceeded consensus, aided by $21.0 million of IEEPA tariff refunds. Gross margin improved to 56.4% and free cash flow reached $8 million, but operating margin remained negative at 5.5% and comparable sales declined 1.9%. Management lowered full-year revenue guidance to $690 million-$710 million while raising EPS guidance to $0.98-$1.26, supporting a neutral assessment because the earnings benefit appears partly nonrecurring.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.51
What stood out
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EPS beat aided by tariff refunds
Q2 revenue was $161.245 million, while diluted EPS was $0.51 versus the $(0.18) consensus estimate. EPS benefited materially from $21.0 million of IEEPA tariff refunds and related interest.
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Gross margin recovered sequentially
Gross margin was 56.4% and operating margin was negative 5.5%; gross margin improved from 52.1% in the prior quarter, but operating profitability remained negative.
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Cash generation improved
Free cash flow was positive $8 million in Q2 versus negative $40 million in the prior quarter, indicating a meaningful sequential improvement in cash generation.
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Share repurchases resumed
The company repurchased 274,426 shares at an average price of $17.74 during the quarter, leaving approximately $46.860 million available under the repurchase program.
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Interest-rate exposure viewed as limited
Management reported that cash, cash equivalents and short-term investments were held primarily in deposits, certificates of deposit, money market funds and investment-grade corporate debt, while stating that interest-rate changes are not expected to materially affect results.
What to watch
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Underlying demand and margins weakened
Comparable sales declined 1.9%, and reported operating margin was negative 5.5%. The $21.0 million tariff refund benefit is nonrecurring, increasing the risk that underlying profitability is weaker than reported EPS suggests.
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Revenue outlook was lowered
Full-year revenue guidance was reduced to $690 million-$710 million from $700 million-$740 million, despite EPS guidance increasing to $0.98-$1.26 from $0.34-$0.81.
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Inflation and variable-rate exposure
The company states that more significant inflation could fail to be fully offset through price increases or efficiency measures, potentially harming results. The revolving credit line also carries floating-rate interest, although management does not expect a material impact.
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Capital allocation could pressure liquidity
The company repurchased 274,426 shares at $17.74 per share while approximately $46.860 million remained authorized, which could reduce liquidity if cash generation weakens.
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No new formal risk-factor changes
There were no material changes to the risk factors disclosed in the fiscal 2026 Form 10-K, and management reported no material control changes during the quarter ended August 2, 2026.
Management's outlook
Full-year guidance was mixed: revenue was lowered to $690 million-$710 million from $700 million-$740 million, while diluted EPS was raised to $0.98-$1.26 from $0.34-$0.81. The filing does not provide a new quantitative outlook beyond the previously disclosed guidance.
Earlier filings 4
10-K · April 2, 2026
Lovesac reported modest revenue growth to $697.0M in fiscal 2026 (sum of quarterly revenues) with pronounced seasonality and a very strong Q4 (Q4 net sales $248.0M, operating margin 18.1%, FCF $78.0M) that offset…
10-Q · December 11, 2025
Lovesac reported quarterly net sales of $150,166,000 (thirteen weeks ended November 2, 2025), essentially flat year‑over‑year versus $149,905,000, but profitability and liquidity deteriorated: gross margin compressed to…
10-Q · September 11, 2025
Lovesac reported quarterly net sales of $160,530,000 (up $3,940,000 or 2.5% YoY versus $156,590,000) but posted a net loss of $6,650,000 (diluted EPS $(0.45)), wider than prior-year quarter EPS $(0.38). Gross profit…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.