- Fourth-quarter net sales fell 3.6% to $241.5 million.
- Fiscal 2025 net income declined 51.6% to $11.6 million.
- Lovesac (LOVE, Financial) projects fiscal 2026 sales between $700-750 million.
The Lovesac Company (NASDAQ: LOVE) has reported its financial results for the fourth quarter and fiscal year 2025. During the fourth quarter, the company observed a decline in net sales by 3.6%, bringing total sales to $241.5 million. Despite this, the company achieved a notable improvement in net income, which rose by 14.1% to $35.3 million. Gross margin also saw an uptick, increasing 70 basis points to reach 60.4%.
For the entire fiscal year 2025, Lovesac reported net sales of $680.6 million, marking a 2.8% decrease from the previous year. Net income for the year dropped significantly by 51.6% to $11.6 million, reflecting challenging market conditions.
Looking ahead, Lovesac has provided a positive outlook for fiscal 2026, with projected net sales ranging from $700 to $750 million and adjusted EBITDA between $48 and $60 million. The company foresees net income to fall within the range of $13 to $22 million. In addition, Lovesac has continued to expand its retail footprint, adding 27 new showrooms, bringing the total to 257.
The company remains committed to innovation and product development, highlighted by the launch of the Sactionals Reclining Seat and the EverCouchâ„¢. Moreover, Lovesac holds a strong financial position with $83.7 million in cash and no debt, positioning it for future growth opportunities.
