Andrew Chasanoff's questions to Lovesac (LOVE) leadership • Q2 2026
Question
Andrew Chasanoff asked about Lovesac's unmitigated tariff costs, whether the current guidance contemplates further pricing actions, and if there are any expected changes to the business's expense profile in the latter half of fiscal 2025 and into 2026.
Answer
CFO Keith Siegner stated that the guidance is based on current in-effect tariff rates and does not factor in potential future changes or additional pricing actions beyond those already discussed. He emphasized that Lovesac has many long-term plans to restore gross margins to target levels, but these are not factored into the immediate Q4 guide. Regarding the expense profile, he noted no material changes are expected, except for a higher SG&A as a percentage of sales in Q4 compared to last year's Q4, due to not planning for an unwind of previously accrued incentive compensation, unlike the prior year. He added that structural growth and category support would drive greater flow-through to the bottom line.