Lovesac sets fiscal 2026 projections with a net sales goal of $685M–$705M, emphasizing its core brand and domestic production.

Management Insights: CEO Shawn Nelson reported Q3 2026 net sales of $150.2 million, slightly below guidance, while highlighting product innovations and a strategic shift to slow physical store expansion amid challenging macro conditions and consumer uncertainty.

Financial Performance: The company experienced a mixed financial performance with showroom sales increasing but internet sales declining, leading to an operating loss of $15.8 million and a net loss of $10.6 million, while gross margins faced pressure from rising costs.

Outlook and Guidance: The revised fiscal 2026 guidance projects net sales between $685 million and $705 million, with a cautious approach to future growth and profitability, emphasizing market share gains and operational efficiency.

Risks and Strategic Focus: Management acknowledged ongoing macroeconomic challenges and consumer price sensitivity, implementing strategies like price increases and a shift to domestic production to mitigate risks while maintaining a focus on product innovation and brand strength.