Lovesac Pops On Strong Q4 Results: Retail Investors Turn Extremely Bullish

Lovesac Co (LOVE) shares rose 16% on Thursday and saw a reversal of retail sentiment to bullish, after the furniture retailer reported fourth-quarter results that beat expectations.

Revenue decreased 3.6% to $241.5 million but beat analyst expectations of $230.3 million. Earnings of $2.13 per share also exceeded the expectations of $1.87 per share.

“After a slow start to the holiday selling season, strong execution by our teams dramatically improved conversion of customer quotes to sales throughout the remainder of the fourth quarter," said CEO Shawn Nelson in a statement.

"While macro conditions were, and remain, frustratingly challenging, we are optimistic and enter Fiscal 2026 in a position of strength."

Lovesac is known for its giant beanbags called "Sacs", which are filled with a proprietary Durafoam blend instead of beans or beads. They are available in multiple sizes and with interchangeable covers.

For its fiscal first quarter, the company expects revenue in the range of $136 million to $142 million and earnings in the range $0.66 to $0.85.

Lovesac said the guidance considers the potential impact of the new U.S. import tariffs; however, "given the fluidity of the recent developments," it cannot predict the impact with certainty.

The company relies on manufacturers in Vietnam, Malaysia, and Indonesia for some of its products.

On Stocktwits, retail sentiment reversed to 'extremely bullish' from 'extremely bearish' within a day, and message volume remained 'extremely high.'

One user expressed concerns over the additional stores the company has opened recently and the high inventory.

Another user said investors were buying LOVE stock due to the fear of missing out.

Shares of LOVE are down nearly 22% year to date.

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