The Lovesac Company (NASDAQ:LOVE) reported first-quarter fiscal 2027 results that topped analyst expectations, but stock fell after the furniture retailer narrowed its full-year sales and earnings outlook amid ongoing pressure on lower-priced purchases.

First-Quarter Results

The furniture retailer posted a GAAP net loss of $11.1 million, or 76 cents per share, compared with a loss of $10.8 million, or 73 cents per share, in the year-ago period. The result was better than analysts’ estimate for a loss of $1.00 per share.

Net sales slipped 0.1% year over year to $138.2 million, ahead of the consensus estimate of $137.4 million.

Showroom sales increased 0.6% to $97.1 million, while internet sales rose 7.1% to $35.7 million. Other sales fell 36.3% to $5.5 million, largely due to the closure of Best Buy shop-in-shop locations. Omni-channel comparable net sales declined 1.0%.

Gross margin contracted 160 basis points to 52.1%, reflecting higher inbound transportation, tariff, outbound transportation and warehousing costs. Price increases and cost-reduction initiatives partially offset those headwinds.

Demand Trends And Financial Position

Management said transactions above $6,000 increased at a mid-double-digit rate during the quarter, ...