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Feb 02, 2025
Lovesac Q4 2025 Earnings Report
Lovesac reported a strong Q4 with increased net income and improved margins, despite a slight decline in revenue year-over-year.
Key Takeaways
Lovesac delivered solid Q4 earnings with notable growth in net income and improved operating margins, even as total net sales slightly declined compared to the same period last year.
Net income grew 14.1% YoY to $35.3 million
Gross margin expanded by 70 basis points to 60.4%
Operating income rose to $47.6 million from $40.4 million YoY
Total net sales declined 3.6% YoY to $241.5 million
Revenue by Segment
Forward Guidance
Lovesac projects modest revenue growth in FY26 with a wide range for net income and EPS due to ongoing macroeconomic uncertainty and recent tariff changes.
Positive Outlook
- FY26 revenue expected between $700M and $750M
- Net income forecasted between $13M and $22M
- Adjusted EBITDA guidance of $48M to $60M
- Strong cash position with $83.7M in cash and no debt
- Healthy gross margin improvements from supply chain efficiencies
Challenges Ahead
- Projected Q1 FY26 net loss between $10M and $13M
- Expected Q1 adjusted EBITDA loss between $8M and $12M
- Tariff-related uncertainties may impact future results
- Macro conditions remain challenging
- Promotional discounting continues to pressure product margins
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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