The Lovesac Company (NASDAQ:LOVE), the omni-channel home brand famous for its "Designed for Life" Sactionals, today announced financial results for the fourth quarter and full fiscal year ended February 1, 2026.
Net sales for the fourth quarter reached $248 million, a 2.7% increase over the $241.5 million reported in the prior-year period.
This brought full-year fiscal 2026 net sales to $697.1 million, up 2.4% annually.
The growth was driven by continued strength in the company's showroom and e-commerce channels, partially offset by a more promotional environment across the furniture sector.
Profitability metrics for the year reflected increased investment and input cost pressures.
Lovesac reported a full-year gross margin of 56.4%, representing a 210-basis-point decline from fiscal 2025.
Net income for the fiscal year totaled $4.1 million.
Despite the margin compression, the company maintained a healthy liquidity position, ending the year with $101.9 million in cash and no outstanding debt on its credit facility.
Reflecting confidence in its long-term strategy, Lovesac's Board of Directors authorized an incremental $40 million for the company's share repurchase program.
This expansion brings the total available buyback capacity to approximately $54.1 million, allowing the company to aggressively return value to shareholders at current valuation levels.
Looking forward to fiscal 2027, Lovesac provided a guidance range of $700 million to $750 million in net sales, with adjusted EBITDA expected to land between $33 million and $44 million.
Management anticipates full-year net income in the range of $5 million to $14 million.
However, the company cautioned that the first quarter of fiscal 2027 is expected to result in both a net loss and an adjusted EBITDA loss, typical of the seasonal nature of the furniture industry and the timing of planned marketing investments.