The Lovesac Company (Nasdaq: LOVE), a leading U.S. home furnishings brand best known for its modular "Sactionals" sofas, has reported a 4.3% year-on-year increase in net sales for the first quarter of fiscal 2026, reaching $138.4 million. The growth is attributed largely to new showroom openings and strategic investment in core capabilities, despite softening consumer demand in the home sector.
© Lovesac
Lovesac CEO Shawn Nelson stated, 'Our first quarter performance was inline with our expectations to capitalize on secular initiatives to drive growth. Notably, we delivered topline growth and leveraged operating expenses as we have begun to reap the benefits of previous investments in core capabilities to bolster our infinity flywheel and accelerate our pace of product innovation.'
The company added 11 new showrooms during the quarter, bringing its total to 267, and reported a 2.8% growth in omni-channel comparable sales. However, internet sales declined by 8.9%, and sales from other channels dropped 40.5%, reflecting shifts in consumer engagement and seasonal fluctuations.
Operating losses narrowed to $15.0 million from $17.9 million in the prior year, supported by a 1.9% drop in SG&A expenses, due to lower professional fees and overheads. Despite these improvements, net loss stood at $10.8 million or $(0.73) per share, a modest improvement from $(0.83) per share in Q1 FY25.
The launch of EverCouch™, Lovesac's new modular sofa platform, was a focal point for the quarter, marking a significant expansion into traditional seating categories such as armchairs and loveseats.
Nelson added, 'As we enter the second quarter, we are thrilled to have launched our third Designed For Life Platform, EverCouch. This expansion into the armchair, loveseat and sofa category effectively doubles our total addressable market. While we remain cautious given the dynamic environment, we have high conviction in our long-term growth trajectory as we execute against our strategic roadmap and unlock the tremendous growth potential ahead.'
Advertising spend increased slightly to $18.6 million, driven by the EverCouch launch campaign. Inventory levels rose to $124.9 million to support growth, with the brand maintaining $26.9 million in cash and no outstanding balance on its line of credit.
Lovesac forecasts full-year FY26 sales between $700 million and $750 million, with adjusted EBITDA expected to range from $48 million to $60 million.
For interior design trade professionals, Lovesac's evolving product ecosystem—anchored in modularity, sustainability, and user-driven flexibility, continues to signal growing relevance in the premium furniture B2B sector.
More information:
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