Lovesac Stock Plummets on Revised Earnings Guidance Despite Market Share Gains

Lovesac shares tumbled 17% Thursday after the modular furniture Maker slashed its full-year earnings guidance. The company now expects $0.75 EPS at midpoint, down sharply from prior $1.08 projections, despite delivering better-than-expected Q2 results.

While the 2.5% sales growth outpaced the furniture industry's 4% decline, investor focus shifted to deteriorating profitability. The market punished Lovesac's defensive positioning against macroeconomic headwinds - including soft consumer confidence, stagnant housing markets, and volatile China tariffs affecting 15% of production.

Bright spots emerged in the Snugg furniture line's successful soft launch, designed to simplify online sales. Yet this innovation couldn't offset concerns about the Core Sactionals products' complexity during economic uncertainty.