By Connor Hart

Lovesac cut its full-year outlook after logging a wider loss in the third quarter, hurt by what Chief Executive Shawn Nelson called tough times for the furniture industry.

The furniture company said Thursday it now expects per-share earnings of 15 cents to 49 cents for the year, down from a previous forecast of 52 cents to $1.05.

Sales are now projected to come in between $685 million and $705 million, compared with a prior view of $710 million to $740 million.

Analysts polled by FactSet were looking for full-year earnings of 68 cents a share on sales of $713.6 million.

For the current quarter, Lovesac guided for earnings of $1.88 to $2.22 a share on sales of $236 million to $256 million. Wall Street had modeled earnings of $2.33 a share, as well as sales of $260.5 million.

Shares tumbled 16%, to $11.57, in premarket trading.

Nelson noted that the company gained market share in the furniture category during the recent quarter thanks to increased marketing efforts and new product launches. These trends have continued through the Black Friday and Cyber Monday holidays, he added.

"Lovesac is inventing and investing steadily, even through these tough times for our category," Nelson said.

The company posted a widened loss of $10.6 million for the quarter ended Nov. 2 compared with a loss of $4.9 million in last year's comparable period. A quarterly loss of 72 cents a share came in slightly below the loss of 69 cents a share that analysts expected.

Sales edged 0.2% higher to $150.2 million but missed the $154.2 million that Wall Street modeled. The company attributed the increase largely to the addition of new showrooms.

Comparable sales, or those from stores and digital channels in operation for at least a year, slipped 1.2%.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

December 11, 2025 07:25 ET (12:25 GMT)

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