Tariffs And Shipping Bills Blow A Hole In Lovesac's Quarter - Lovesac (NASDAQ:LOVE)

Core Viewpoint - Lovesac Company reported a wider quarterly loss and softer sales than expected, leading to a decline in stock price and a tightened full-year outlook due to higher costs and weaker comparable sales [1] Financial Performance - The company reported quarterly sales of $150.166 million, a slight increase of 0.2% year over year, but below the expected $154.146 million [2] - Gross profit fell by 3.9% year over year to $84.2 million, with gross margin decreasing by 240 basis points to 56.1% [3] - The operating loss for the third quarter was $15.8 million, compared to $7.7 million in the prior year [3] Cash Position - As of November 2, 2025, the cash and cash equivalents balance was $23.7 million, down from $61.7 million a year ago, with total merchandise inventory at $129.7 million [4] Outlook - The fiscal 2026 GAAP earnings outlook was cut to a range of 15 cents to 49 cents per share, down from 52 cents to $1.05, and below the analyst estimate of 85 cents [5] - The revenue forecast for fiscal 2026 was trimmed to $685 million to $705 million, compared to the earlier projection of $710 million to $740 million and the consensus estimate of $713.56 million [5] - For the fourth quarter, the company expects GAAP earnings of $1.88 to $2.22 per share, below the analyst estimate of $2.33, and projects revenue of $236 million to $256 million, compared to the consensus forecast of $260.47 million [6] Strategic Goals - The CEO stated the goal of reaching three million Lovesac households by 2030, indicating long-term growth ambitions [7]