Lovesac Company (LOVE) Stock Forecast & Price Target

Lovesac experienced a year-over-year net sales increase of 2.5%, reaching $160.5 million in the second quarter of fiscal 2026, consistent with market expectations. The company has also revised its full-year revenue forecast to between $710 million and $740 million, reflecting a growth rate of 4-9% year-over-year, which highlights its resilience and market share gains despite macroeconomic challenges. Additionally, while gross margins contracted by approximately 250 basis points, they remained 100 basis points above consensus estimates, indicating a stronger-than-expected profitability outlook relative to market conditions.

The Lovesac Company is experiencing a negative outlook, primarily due to a decline in revenue estimates attributed to a challenging macroeconomic environment and pressure on profitability from tariffs and competitive discounting. Gross margins have fallen by 260 basis points to 56.4%, despite exceeding consensus expectations, indicating underlying cost challenges that could further impact financial performance. Additionally, the company has revised its EBITDA guidance downward to a range of $42-$55 million, suggesting ongoing difficulties in maintaining sustainable growth in the face of intellectual property risks and potential competitive pressures.