Lovesac Expects 4-9% Revenue Growth in FY26, Driven by Brand Refresh and Snugg Launch Success

Lovesac reported Q2 2026 earnings in line with expectations, marking another quarter of top-line growth. CEO Shawn Nelson noted the success of their brand refresh and Snugg launch, driving revenue growth. The company outlined a 4%-9% fiscal 2026 revenue growth target, indicating confidence in their ongoing efforts to revitalize their brand and expand their product offerings.

Lovesac, the Designed for Life home and technology brand, reported its second quarter fiscal 2026 earnings, showing top-line growth and a successful brand refresh. The company's net sales increased by 2.5% to $160.5 million compared to the same period last year, driven by a 0.9% increase in omni-channel comparable net sales and the addition of 16 new showrooms Lovesac : Earnings Release Q2 2026^[1].

CEO Shawn Nelson highlighted the success of their brand refresh and the launch of the Snugg product line, contributing to the revenue growth. The company's gross profit decreased by 1.9% to $90.6 million, primarily due to higher transportation costs and promotional discounting. SG&A expenses decreased by 2.1% to $72.1 million, while advertising and marketing expenses increased by 0.7% to $23.5 million, driven by the new product marketing campaign Lovesac : Earnings Release Q2 2026^[1].

Lovesac's operating loss was $8.8 million for the quarter, up from $8.4 million in the same period last year, resulting in an operating margin of (5.5)% of net sales. The net loss was $6.7 million, or $(0.45) per common share, compared to $5.9 million or $(0.38) per common share in the prior year period. The company also recorded an income tax benefit of $2.1 million, up from $1.8 million in the prior year Lovesac : Earnings Release Q2 2026^[1].

For the year-to-date period ended August 3, 2025, Lovesac's net sales increased by 3.3% to $298.9 million, with a gross profit increase of $0.6 million. The company expects net sales in the range of $710 million to $740 million for the full year of fiscal 2026, with adjusted EBITDA in the range of $42 million to $55 million, and net income in the range of $8 million to $17 million Lovesac : Earnings Release Q2 2026^[1].

The company's brand refresh and product expansion initiatives are expected to continue driving growth in the coming quarters. Lovesac's focus on long-term brand building and efficient customer acquisition strategies indicates confidence in its ability to deliver meaningful long-term value Lovesac : Earnings Release Q2 2026^[1].

References:
Lovesac : Earnings Release Q2 2026^[1]: https://www.marketscreener.com/news/lovesac-earnings-release-q2-2026-ce7d59d2d98df322