Lovesac Stock Plummets On Q3 Earnings Miss: Retail Heartbroken

Shares of Lovesac ($LOVE) were down 25% on Thursday morning after the home furnishing company posted third-quarter earnings missed analyst estimates, dampening retail sentiment.

Stamford, Conn.-based Lovesac posted a net loss of $4.9 million or loss per share of $0.32, wider than the $2.3 million or per share loss of $0.15 seen last year in the same period.  

Its net sales fell 2.7% compared to the year-ago period, led by a decrease of 8.3% in omni-channel comparable net sales, which the company said was partially offset by the net addition of 28 new showrooms.

“Near-term headwinds for our category clearly persisted through the pre-election period,” Shawn Nelson, CEO, said, adding the fundamental drivers of the business - including brand equity, innovation pipeline, and customer relationship opportunities - are strong.

Retail sentiment on the stock fell to the lowest levels seen this year in the ‘extremely bearish’ (5/100) territory, down from ‘neutral’ (54/100) a month ago. Message volume jumped  to ‘extremely high’ from ‘normal.’

LOVE sentiment meter and message volumes on Dec 12

For fiscal 2025, the company lowered its guidance on net sales, expecting it to fall between $660 million and $680 million, compared to the earlier stated $700 million and $735 million.

It expects diluted income per common share in the range of $0.27 to $0.74, reduced from the earlier expected $1.01 and $1.26. 

For the fourth quarter of fiscal 2025, it expects net sales of $221 million to $241 million and diluted income per common share of $1.67 to $2.14.

Lovesac stock is up 7% year-to-date.