Lovesac Q4 Earnings Call: Sales Growth, Digital Strength, and a Challenging Promotional Environment

Lovesac reported Q4 net sales of $248.0 million, up 2.7% YoY, with e-commerce up 12.3%. However, gross margin slid to 58.1% and adjusted EBITDA fell to $49.6 million. The company finished fiscal 2026 with a strong liquidity position and repurchased 6.0 million shares. Management is prioritizing onshoring, new product platforms, and paid delivery/white-glove services. Fiscal 2027 guidance is $700-750 million in net sales and $33-44 million in adjusted EBITDA, assuming continued category weakness.