Sep 10, 2026 earnings call — Big product roadmap and service rollouts
Company reported net sales of $161.2 million and outlined four major product launches starting late Q3 and impacting Q4.
Revenue $0.2B (est $0.2B) · EPS $0.51 (est $-0.36) · Next-quarter revenue outlook $0.1B
Key quotes
"Building on the successful launches of reclining seat and Snugg, the second half of fiscal 2027 will represent the most prolific period of new product introductions ever."
"Our marketing efficiency and ROI improved significantly during the quarter."
"Our initial onshore production of Sactionals seats remains on track to begin manufacturing in Q3."
Analyst Q&A 5
discounted open-box program growth
Q (Thomas Forte · Maxim Group): Will Loved by Lovesac help capture value-focused customers? Also asked about higher-end product launches, room share, and selling with higher-end retailers.
A: Management said Loved by Lovesac is scaling and is already in 32 states with more coming. They see most customers in that program are new to the brand and plan an outlet in Chicago; they also described upcoming higher-end Sactionals and other product rollouts coming in Q4.
"70% of the customers that are coming into Loved by Lovesac are new to the Lovesac brand." — Mary Fox (PRESIDENT)
timing of new product launches
Q (Eric Des Lauriers · Craig-Hallum): Which products launch when, is it one per quarter, and will the premium Sactional be the biggest P&L driver? Also asked if delays affected the lowered outlook.
A: Management said they will have a steady drumbeat of multiple innovations across quarters, not just one per quarter, and that several new Sactionals and Snugg additions are planned. They said many launches cluster over the next couple of quarters and timing shifts (some launches landing late in Q3) contributed to the more conservative near-term guidance.
"The key takeaway here is that heretofore, Lovesac has been seen as a Sactionals company." — Shawn Nelson (CEO)
customer financing and marketing mix
Q (Maria Ripps · Canaccord Genuity): Are financing programs a lever to improve conversion and have customer financing preferences changed? Also asked about Q4 marketing mix between brand and performance.
A: Management said financing remains one lever and they keep testing options, but overall financing usage has declined as customers have more choices. They plan to increase Q4 marketing behind a big campaign, shifting more to digital and social while keeping brand and product storytelling to drive conversion.
"We continue to test and learn, always looking in terms of every opportunity to be able to drive acquisition." — Mary Fox (PRESIDENT)
drivers of EBITDA reduction
Q (Speaker 8 · ROTH Capital): How much of the $7 million EBITDA cut is due to tariffs versus softer demand, higher logistics/input costs, or assumed promotions?
A: Management said the EBITDA improvement they forecast is driven by new product launches, services, and customer-acquisition optimizations, and that fuel and freight costs are baked into guidance. They explicitly said tariffs are not part of their EBITDA guidance or results and that pricing/promotion changes are being tested, so guidance is conservative.
"As it relates specifically to tariffs is not part of our EBITDA calculation, part of our adjusted EBITDA calculation, not in our guidance, nor is it in our actual results." — Andrew Farag (CFO)
macro impact on lowered guidance
Q (Casey McKenzie · Oppenheimer): Did macro pressures or demand deterioration drive the reduced guidance versus prior expectations? What changed this quarter?
A: Management said they are not assuming a change in macro consumer sentiment and that the main driver of the guidance update is timing of innovation launches and activating marketing and services. They said they are managing SG&A tightly and will focus on innovation and marketing to drive growth without expecting a macro recovery.
"The key drivers around the updates in the guidance are really around the innovation timings." — Mary Fox (PRESIDENT)