Lovesac Company (LOVE) Stock Forecast & Price Target

Lovesac Co reported a year-over-year net sales increase of 2.5%, reaching $160.5 million for the second quarter of fiscal 2026, which aligns with market consensus. The company has adjusted its fiscal year 2026 revenue outlook to a range of $710-$740 million, indicating a growth forecast of 4-9% year-over-year amidst prevailing macroeconomic challenges. Despite a 250 basis point contraction in gross margin to 56.4%, this figure remains 100 basis points above consensus, suggesting strong operational resilience and confidence in future growth.

The Lovesac Co. has experienced a decline in gross margins, which fell by 260 basis points to 56.4%, indicating pressure on profitability that may be attributed to competitive discounting and tariff impacts. Revenue estimates have been lowered due to an uncertain macroeconomic environment, while EBITDA guidance was also revised downward to a range of $42-55 million, suggesting challenges in maintaining expected profit margins. Additionally, the company faces intellectual property-related risks that could hinder future sales growth, particularly from competitors offering similar products at lower prices.