The Lovesac Company (NASDAQ: LOVE) has appointed Andrew Farag as Executive Vice President, Chief Financial Officer and Treasurer, effective June 15, 2026, as the Stamford, Connecticut-based furniture retailer reported first quarter fiscal 2027 net sales of $138.2 million.
Farag succeeds Keith Siegner, who stepped down from the CFO role. Siegner will remain with the company for a short period to support the transition. The appointment follows Lovesac's Q1 fiscal 2027 results for the 13 weeks ended May 3, 2026, released June 11, 2026.
#Andrew Farag Brings 20-Plus Years of Finance and Operations Experience
Farag joins from Riveron, where he served as Managing Director providing strategic finance and corporate advisory services. He previously held roles at Ankura Consulting and has served as CFO and COO at Net Retailers, Inc., Dynamic Communities, and rEvolution Marketing.
His background spans consumer goods, retail, and manufacturing companies, including those the company said were scaling toward $2 billion in revenue. Farag holds a Bachelor of Science in Accounting from Purdue University's Krannert School of Management and an MBA in Finance from Northwestern University's Kellogg School of Management.
"Having worked with Andrew previously in a consulting capacity, we saw firsthand the value he brings to complex business challenges," said Shawn Nelson, Chief Executive Officer of Lovesac, in the statement. "His proven ability to optimize financial operations, lead systems implementations, and drive business growth and margin improvements through marketing, supply chain, manufacturing, and organizational strategic initiatives aligns perfectly with our strategic priorities."
#Q1 Net Sales Flat as Tariff Costs Weigh on Gross Margin
Net sales in Q1 fiscal 2027 were $138.2 million, down 0.1% from $138.4 million in the prior year period. The decline reflected the closure of Best Buy shop-in-shop locations and a 1.0% decrease in omni-channel comparable net sales, partially offset by 14 net new showrooms.
Showroom net sales rose 0.6% to $97.1 million. Internet net sales increased 7.1% to $35.7 million. Other channel revenue, which included the Best Buy locations, fell 36.3% to $5.5 million.
Gross margin declined 160 basis points to 52.1%, from 53.7% in the prior year period. The company attributed the contraction primarily to increases of 380 basis points in inbound transportation and tariff costs and 110 basis points in outbound transportation and warehousing costs, partially offset by a 330 basis point improvement in product margin from price increases and cost reduction initiatives.
Net loss was $11.1 million, or $(0.76) per diluted share, compared to a net loss of $10.8 million, or $(0.73) per diluted share, in the first quarter of fiscal 2026. Adjusted EBITDA was a loss of $10.5 million, compared to a loss of $8.4 million in the prior year period.
Cash and cash equivalents were $57.0 million as of May 3, 2026, compared to $26.9 million a year earlier. The company had no outstanding balance on its credit line.
#Domestic Manufacturing and New Products Ahead as Full-Year Guidance Reaffirmed
The company reaffirmed its full-year fiscal 2027 guidance, projecting net sales of $700 million to $740 million, Adjusted EBITDA of $35 million to $46 million, and net income of $5 million to $12 million, equivalent to diluted earnings per share of $0.34 to $0.81.
For the second quarter of fiscal 2027, Lovesac projected net sales of $157 million to $166 million and a net loss of $3 million to $7 million. The company also said it expects to recognise approximately $3.6 million in IEEPA tariff refunds, including interest, in the second quarter.
The company said domestic production of Sactionals seat inserts is set to begin in summer 2026 as part of a "Made in America" initiative intended to reduce cost exposure to tariffs and overseas shipping disruptions. Management said the reclining seat was included in one in every three new Sactionals setups during the quarter.
Lovesac competes in the specialty home furnishings market alongside larger retailers including RH (Restoration Hardware) and Williams-Sonoma, as well as direct-to-consumer furniture brands. The company operates 281 showrooms and sells online at lovesac.com.
Execution risks include continued tariff and freight cost pressure, softer consumer discretionary spending, dependence on foreign manufacturing, and the ability to successfully launch new products on the company's stated timeline. Management projected the New Room product platform would launch in early calendar 2027, though product development timelines and macroeconomic conditions remain risks to that outlook.