Revenue growth of just 0.4% in 2027Q2 alongside a 940-basis-point gross margin expansion to 65.8% and SG&A fixed near $95M indicates profitability is being driven by cost dynamics rather than demand, with three of the last four quarters posting operating losses.
The Lovesac Company (LOVE) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 |
|---|
| Sales/Revenue | 697.65M | 697.12M | 680.63M | 700.26M | 651.18M | 498.24M | 320.74M | 233.38M | 165.88M | 101.81M | 76.34M | 74.15M |
| Revenue Growth % | 1.07% | 2.42% | -2.8% | 7.54% | 30.7% | 55.34% | 37.43% | 40.69% | 62.93% | 33.36% | 2.96% | - |
| Cost of Goods Sold | 291.38M | 319.11M | 282.79M | 299.22M | 307.53M | 224.71M | 145.97M | 116.69M | 75M | 44.59M | 34.65M | 33.64M |
| COGS % of Revenue | - | 45.78% | 41.55% | 42.73% | 47.23% | 45.1% | 45.51% | 50% | 45.21% | 43.8% | 45.38% | 45.36% |
| Gross Profit | 406.27M | 378.01M | 397.83M | 401.04M | 343.65M | 273.53M | 174.77M | 116.69M | 90.88M | 57.22M | 41.7M | 40.51M |
| Gross Margin % | 58.23% | 54.22% | 58.45% | 57.27% | 52.77% | 54.9% | 54.49% | 50% | 54.79% | 56.2% | 54.62% | 54.64% |
| Gross Profit Growth % | - | -4.98% | -0.8% | 16.7% | 25.63% | 56.51% | 49.77% | 28.4% | 58.83% | 37.22% | 2.93% | - |
| Operating Expenses | 383.56M | 372.65M | 384.19M | 370.97M | 306.69M | 232.95M | 159.89M | 132.5M | 97.92M | 62.25M | 47.87M | 47.17M |
| OpEx % of Revenue | - | 53.46% | 56.45% | 52.98% | 47.1% | 46.76% | 49.85% | 56.77% | 59.03% | 61.15% | 62.7% | 63.62% |
| Selling, General & Admin | 371.63M | 372.65M | 369.48M | 358.36M | 295.84M | 225.09M | 153.28M | 127.34M | 94.79M | 60.04M | 47.87M | 47.17M |
| SG&A % of Revenue | - | 53.46% | 54.28% | 51.18% | 45.43% | 45.18% | 47.79% | 54.56% | 57.14% | 58.97% | 62.7% | 63.62% |
| Research & Development | 1.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 14.71M | 12.6M | 10.84M | 7.86M | 6.61M | 5.16M | 3.13M | 2.21M | 0 | 0 |
| Operating Income | 22.71M | 5.36M | 13.65M | 30.08M | 36.97M | 40.58M | 14.88M | -15.81M | -7.04M | -5.04M | -6.17M | -6.66M |
| Operating Margin % | 3.25% | 0.77% | 2.01% | 4.29% | 5.68% | 8.14% | 4.64% | -6.77% | -4.25% | -4.95% | -8.08% | -8.99% |
| Operating Income Growth % | - | -60.7% | -54.62% | -18.64% | -8.9% | 172.7% | 194.12% | -124.45% | -39.81% | 18.36% | 7.4% | - |
| EBITDA | 38.76M | 20.57M | 28.36M | 42.68M | 47.81M | 48.44M | 21.49M | -10.65M | -3.91M | -2.82M | -4.06M | -4.28M |
| EBITDA Margin % | 5.56% | 2.95% | 4.17% | 6.09% | 7.34% | 9.72% | 6.7% | -4.56% | -2.36% | -2.77% | -5.32% | -5.77% |
| EBITDA Growth % | 25.02% | -27.47% | -33.56% | -10.73% | -1.3% | 125.36% | 301.79% | -172.43% | -38.47% | 30.47% | 5.15% | - |
| D&A (Non-Cash Add-back) | 16.05M | 15.21M | 14.71M | 12.6M | 10.84M | 7.86M | 6.61M | 5.16M | 3.13M | 2.21M | 2.11M | 2.38M |
| EBIT | 24.25M | 5.36M | 16.45M | 31.82M | 36.97M | 40.58M | 14.88M | -15.81M | -7.04M | -5.04M | -6.17M | -7.31M |
| Net Interest Income | 2.75M | 0 | 2.8M | 1.75M | -117K | -179K | -67.38K | 646.84K | 355.36K | -437.96K | -565.56K | -1.69M |
| Interest Income | 2.75M | 0 | 2.8M | 1.75M | 0 | 0 | 0 | 646.84K | 355.36K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 117K | 179K | 67.38K | 0 | 0 | 437.96K | 565.56K | 1.69M |
| Other Income/Expense | 2.75M | 1.3M | 2.8M | 1.75M | -117K | -179K | -67K | 647K | 355.36K | -437.96K | -565.56K | -2.33M |
| Pretax Income | 25.46M | 6.67M | 16.45M | 31.82M | 36.85M | 40.4M | 14.81M | -15.16M | -6.69M | -5.48M | -6.74M | -8.99M |
| Pretax Margin % | 3.65% | 0.96% | 2.42% | 4.54% | 5.66% | 8.11% | 4.62% | -6.5% | -4.03% | -5.38% | -8.82% | -12.13% |
| Income Tax | -1.88M | 2.6M | 4.89M | 7.96M | 10.36M | -7.09M | 86K | 43K | 16.41K | 26K | 138K | 0 |
| Effective Tax Rate % | -7.38% | 39.01% | 29.75% | 25.02% | 28.12% | -17.55% | 0.58% | -0.28% | -0.25% | -0.47% | -2.05% | 0% |
| Net Income | 17.89M | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M | 14.73M | -15.21M | -6.7M | -5.5M | -6.87M | -8.99M |
| Net Margin % | 2.56% | 0.58% | 1.7% | 3.41% | 4.07% | 9.53% | 4.59% | -6.52% | -4.04% | -5.4% | -9% | -12.13% |
| Net Income Growth % | 38.83% | -64.82% | -51.57% | -9.92% | -44.22% | 222.46% | 196.86% | -126.79% | -21.86% | 19.97% | 23.57% | - |
| Net Income (Continuing) | 17.89M | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M | 14.73M | -15.21M | -6.7M | -5.5M | -6.87M | -8.99M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.22 | 0.28 | 0.69 | 1.45 | 1.66 | 2.86 | 0.96 | -1.07 | -3.28 | -0.52 | -0.53 | -0.67 |
| EPS Growth % | 93.65% | -59.42% | -52.41% | -12.65% | -41.96% | 197.92% | 189.72% | 67.38% | -530.77% | 1.89% | 20.73% | - |
| EPS (Basic) | - | 0.28 | 0.75 | 1.55 | 1.74 | 3.04 | 1.01 | -1.07 | -3.28 | -0.52 | -0.53 | -0.67 |
| Diluted Shares Outstanding | 14.65M | 14.7M | 16.79M | 16.46M | 15.96M | 16.06M | 15.33M | 14.26M | 10.54M | 12.93M | 12.93M | 13.45M |
| Basic Shares Outstanding | 14.65M | 14.68M | 15.5M | 15.43M | 15.2M | 15.11M | 14.61M | 14.26M | 10.54M | 12.93M | 12.93M | 13.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LOVE stock.
For fiscal year 2026, The Lovesac Company (LOVE) reported total revenue of $697.1M. This represents a 840.2% increase compared to $74.1M in 2016.
The Lovesac Company (LOVE) is profitable, generating $4.1M in net income for the fiscal year ending 2026 with a net profit margin of 0.6%.
The Lovesac Company (LOVE) reported an operating income of $5.4M, resulting in an operating profit margin of 0.8%. This margin reflects the operational efficiency of the business before interest and taxes.
The Lovesac Company (LOVE) generated $378.0M in gross profit for the year, representing a gross profit margin of 54.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Gross margin sustainability with flat revenue
Metrics are mathematically derived from official filings.
Stalled Top Line Amid Demand Ceiling
Lovesac's revenue inched up just 0.4% year over year to $161.2 million in 2027Q2, extending a multi-quarter pattern of near-flat comparisons. According to reported figures, trailing twelve-month revenue totals approximately $697.6 million, implying only about 1.1% annualized growth across all seasons.
The stagnation is broad-based: the seasonally largest Q4 rose only 2.7% to $248.0 million, while Q1 revenue was effectively flat at $138.2 million. This pattern suggests Lovesac may be approaching a saturation point in its core modular-sofa addressable market, or facing intensifying direct-to-consumer competition that is capping share gains. Investors should monitor whether new product configurations and showroom expansion can reaccelerate unit volumes before extrapolating any margin-driven earnings gains as durable.
Gross Margin Surge Warrants Skepticism
Gross margin expanded roughly 940 basis points year over year to 65.8% in 2027Q2, driven by a 21% decline in COGS to $55.2 million on essentially flat revenue. As reported in recent SEC filings, this margin level is far above furnishings peers La-Z-Boy at 44.0% and Flexsteel at 24.7%.
The magnitude of the COGS decline against unchanged sales volume appears unusual and may reflect freight cost normalization, supplier renegotiations, or a mix shift toward higher-margin accessories within the modular ecosystem rather than an operating-efficiency gain. The wide intra-year swing between 52.1% (2027Q1) and 65.8% (2027Q2) gross margins also highlights potential classification changes or one-time adjustments that warrant further investigation before treating the new margin level as the run rate.
Fixed Cost Base Amplifies Seasonal Swings
SG&A has remained inside a tight $85–97 million band across all ten reported quarters regardless of revenue seasonality, indicating a largely fixed corporate cost structure. Based on the company's reported figures, SG&A absorbed 61.9% of revenue in 2027Q1 but only 38.3% in 2026Q4, swinging operating margin from -12.6% to +18.1%.
This structure means Lovesac's bottom line is driven far more by gross margin discipline than overhead efficiency, since the fixed cost stack does not flex down with seasonal revenue declines. Positive operating income materialized in only two of the last ten quarters, suggesting the breakeven threshold sits near the holiday-quarter revenue level at historical gross margins — a bar the business has not sustained outside Q4. Any structurally higher SG&A trajectory without commensurate revenue growth would compress that already narrow margin of safety.
Q2 2027 Breaks Pattern of Off-Season Losses
2027Q2 marks the first non-holiday quarter to deliver material profitability, with operating income of $10.9 million and diluted EPS of $0.51 versus a $0.45 loss in the prior-year comparable. According to the income statement history, this inflection was almost entirely a gross margin event rather than a revenue acceleration story.
Historically, Lovesac's results were binary — modest holiday-quarter profits consistently offset by off-season operating losses of $8–18 million. If the 65.8% gross margin reflects a durable structural shift (e.g., freight deflation, supplier leverage, or mix improvement), the earnings profile could re-rate meaningfully; however, if margins normalize toward the 56% historical range, this inflection may prove transitory. The single-quarter nature of the swing, rather than a sustained multi-period trend, argues for a cautious extrapolation.
Flat Revenue Undermines Margin-Led Case
The strongest bear case hinges on the disconnect between 0.4% revenue growth and a narrative built on margin expansion, while SG&A has climbed from $86.4 million to $95.1 million over the ten-quarter window. As reported, three of the last four quarters posted operating losses despite an elevated gross margin environment.
A short-seller would argue the 2027Q2 gross margin improvement is a one-time benefit — potentially freight deflation, inventory-related adjustments, or channel mix effects — and that the fixed cost base cannot support sustained profitability without top-line growth. The sudden appearance of an $1.8 million R&D line in 2027Q2 (after nine quarters of $0) also signals a disclosure or accounting practice change that investors should probe, since it complicates period-over-period expense comparisons and may mask underlying cost trajectory shifts.