Lovesac Co. (NASDAQ:LOVE) Stock Plummets After Q3 Revenue Miss and Weak Holiday Guidance

Lovesac Co. (NASDAQ:LOVE) reported its financial results for the third quarter of fiscal 2026, delivering figures that fell short of Wall Street's expectations on the top line and issuing revenue guidance for the critical holiday quarter that disappointed investors. The market's reaction was swift and negative, with the stock trading down sharply in pre-market activity.

Earnings and Revenue Miss

For the quarter ended November 2, 2025, the modular furniture company reported net sales of $150.2 million, representing a marginal 0.2% increase compared to the same period last year. This result came in below the analyst consensus estimate.

• Reported Q3 Revenue: $150.2 million
• Analyst Estimate for Q3 Revenue: Approximately $157.2 million
• Variance: A miss of roughly $7.0 million, or about 4.5%.

On profitability, the company's non-GAAP earnings per share (EPS) loss was slightly wider than analysts had projected.

• Reported Q3 Non-GAAP EPS: -$0.72
• Analyst Estimate for Q3 EPS: -$0.70

Disappointing Forward Guidance

A primary driver of the negative market sentiment appears to be the company's outlook for the upcoming fourth quarter, which encompasses the key holiday shopping season. Lovesac provided revenue guidance that was notably below current analyst expectations.

• Company's Q4 Revenue Guidance: $246 million
• Analyst Consensus Estimate for Q4 Revenue: Approximately $260.6 million
• Variance: Guidance is about 5.6% below estimates.

This cautious forecast suggests management anticipates continued headwinds or a more challenging consumer environment than the market had priced in.

Market Reaction and Recent Performance

The immediate financial markets responded negatively to the earnings miss and soft guidance. Prior to the market open following the report, LOVESAC CO/THE (NASDAQ:LOVE) shares were indicated down approximately 13.8%. This sharp pre-market decline stands in contrast to the stock's more muted performance in the weeks leading up to the report, where it had been relatively flat.

Press Release Summary

The company's official press release highlighted the slight year-over-year sales increase to $150.2 million. It emphasized Lovesac's identity as a "Designed for Life" home and technology brand, best known for its adaptable Sactionals couches. The release served as the formal announcement of the financial results detailed above, setting the stage for the subsequent market reaction.

Looking Ahead

With the Q3 results now public, investor focus will shift to the company's ability to execute during the all-important fourth quarter and whether it can meet or exceed its own tempered guidance. Full-year analyst estimates will likely be adjusted in the wake of this report. The coming months will be a test of the company's operational efficiency and the resilience of demand for its premium modular furniture in the current economic climate.

For a detailed breakdown of historical earnings, future estimates, and analyst revisions, you can review the data here: LOVE Earnings & Estimates.

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