Lovesac stock fell 1.8 percent on October 2 as tariffs aided profit

Published on 10/04/2026 at 23:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Lovesac stock posted USD 161.2 million in fiscal Q2 2027 revenue for the period ended August 2, 2026. Tariff refunds lifted earnings, while full-year sales guidance stood at USD 690 million to USD 710 million.

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Lovesac stock fell 1.8 percent to USD 14.70 on Nasdaq on October 2, 2026, leaving the shares between a 52-week low of USD 10.33 and a high of USD 19.25. The move followed a fiscal second quarter in which tariff refunds lifted reported profit while comparable sales declined, a split picture that keeps the company tied to its product launches and consumer demand.

Tariff refunds lifted quarterly profit

For the thirteen weeks ended August 2, 2026, net sales increased 0.4 percent to USD 161.2 million from USD 160.5 million a year earlier, according to GlobeNewswire on September 10, 2026. Net income reached USD 7.4 million, or USD 0.51 per diluted share, compared with a net loss of USD 6.7 million, or USD 0.45 per share, in the prior-year quarter.

The improvement included USD 0.86 of net benefit per diluted share from tariff refunds, while adjusted EBITDA was a loss of USD 1.3 million versus income of USD 0.8 million a year earlier, GlobeNewswire reported. Gross margin reached 68.4 percent, compared with 56.4 percent in the prior-year period, but the company said the margin excluding tariff recoveries was 56.0 percent.

Demand and guidance remain mixed

Comparable omni-channel sales fell 1.9 percent for the quarter, even as showroom sales rose 4.6 percent to USD 114.1 million and the showroom count reached 284, according to the company release. The company guided fiscal 2027 revenue to USD 690 million to USD 710 million and adjusted EBITDA to USD 31.5 million to USD 35.5 million.

Analyst actions after the results highlighted the tension between the earnings benefit and the operating trends. Investing.com reported on September 11, 2026, that DA Davidson cut its target from USD 20 to USD 18 while maintaining a Buy rating. The same report said Canaccord reduced its target from USD 22 to USD 20 and also kept a Buy rating.

Analysts still see higher value

MarketBeat reported on September 20, 2026, that three analysts rated Lovesac Buy and one rated it Hold, producing a Moderate Buy consensus with an average target of USD 21.33. Against the October 2 price of USD 14.70, that target is 45.1 percent above the price, while the published 52-week high is USD 19.25.

The next visible company event is October 8, 2026, when Lovesac is scheduled to participate in the TAG and Santander Global Consumer and Retail Conference at 2:45 p.m. ET, according to the company's investor-relations calendar at The Lovesac Company. For investors, the key test is whether new products can improve underlying demand after the one-time tariff benefit fades.

Lovesac stock stays below its yearly high

Lovesac stock was last at USD 14.70 on Nasdaq on October 2, 2026, down USD 0.27 or 1.80 percent for the session. Its 52-week range was USD 10.33 to USD 19.25.