Lovesac Reports Slight Increase in Net Sales but Wider Net Loss for Recent Quarter

The Lovesac Company reported a slight increase in net sales for the thirteen weeks ended November 2, 2025, totaling $150.2 million, up from $149.9 million in the same period last year. However, the company experienced a net loss of $10.6 million, compared to a loss of $4.9 million in the prior year. For the thirty-nine weeks ended November 2, 2025, net sales rose to $449.1 million from $439.1 million, while the net loss increased to $28.0 million from $23.8 million. The company's gross profit margin also declined, with gross profit at $84.2 million, or 56.1% of net sales, down from 58.5% in the previous year.

The company noted significant changes in customer engagement, with a 16.4% decrease in new customers and a 2.3% decline in repeat customers during the most recent quarter. This decline in customer counts contributed to a 1.2% drop in omni-channel comparable net sales. The showroom segment saw a 12.8% increase in sales, while internet sales fell by 16.9%, reflecting a shift in consumer purchasing behavior. The company operated 275 showrooms as of November 2, 2025, an increase from 258 a year earlier, indicating a strategic focus on expanding its physical presence.

Operationally, Lovesac has made adjustments to its product offerings, including the launch of the Snugg™ seating platform and the Sactionals Reclining Seat, which are designed to enhance customer experience and product adaptability. The company also discontinued its partnership with Best Buy, resulting in the closure of all shop-in-shop locations, which negatively impacted sales in the "Other" category, leading to a 27.3% decrease in that segment. The company has emphasized its commitment to sustainability through initiatives like the Loved by Lovesac program, which allows customers to purchase revitalized open-box products.

Looking ahead, Lovesac's management expressed caution regarding macroeconomic factors such as inflation and consumer spending, which could impact future performance. The company plans to continue evaluating its capital sources and operational strategies to adapt to changing market conditions. Despite the challenges, Lovesac remains focused on leveraging its omni-channel sales strategy and expanding its showroom footprint to drive future growth. The company has approximately $14.1 million remaining under its share repurchase program, reflecting its ongoing commitment to enhancing shareholder value.