Lovesac Company (LOVE) Stock Forecast & Price Target

Lovesac's net sales demonstrated a modest increase of 2.5% year-over-year, reaching $160.5 million in the second quarter of fiscal 2026, which aligns well with market consensus expectations. The company's adjusted gross margin remains robust at 56.4%, surpassing consensus estimates by 100 basis points, indicating effective management of costs despite a year-over-year contraction. Furthermore, Lovesac's revised full-year revenue outlook of $710-$740 million points to a projected growth of 4-9% year-over-year, showcasing a positive trajectory driven by continued market share gains and strong fundamentals.

Lovesac is facing a challenging financial landscape characterized by decreased revenue estimates and profitability forecasts, driven by pressures from tariffs and competitive discounting within the uncertain macroeconomic environment. The company has reported a decline in gross margins, which fell by 260 basis points to 56.4%, despite being slightly better than market expectations, indicating underlying cost challenges. Furthermore, with anticipated EBITDA guidance adjustment to a range of $42-$55 million and concerns over intellectual property-related risks potentially impacting future sales growth, the outlook for Lovesac’s stock appears negative.