Stamford-based furniture retailer Lovesac said it has received $3.6 million in tariff refunds, becoming one of the first Connecticut companies to collect money after the U.S. Supreme Court struck down Trump-era tariffs earlier this year. The company said it submitted refund claims in April and had received $3.6 million through June 10. Because the payments […]
Stamford-based furniture retailer Lovesac said it has received $3.6 million in tariff refunds, becoming one of the first Connecticut companies to collect money after the U.S. Supreme Court struck down Trump-era tariffs earlier this year.
The company said it submitted refund claims in April and had received $3.6 million through June 10. Because the payments arrived after the close of its first quarter, Lovesac said the refunds will be recorded as income in its second-quarter results.
The refunds stem from the Supreme Court's February ruling that tariffs imposed under the International Emergency Economic Powers Act were unlawful. The decision prompted U.S. Customs and Border Protection to establish a process for importers to seek reimbursement of duties they had previously paid.
The payment provides an early indication that the federal refund process is beginning to return money to businesses. In April, a number of Connecticut companies
said they were owed millions of dollars in tariff refunds following the court's decision.
Among them was Fairfield-based Bigelow Tea, whose president and CEO, Cindi Bigelow, said the tariffs had cost the family-owned business millions of dollars. Oxford importer B. United International said it was seeking more than $518,000 in refunds. Other Connecticut companies pursuing refunds included Amphenol, Timex Group, RBC Bearings and Lovesac.
Lovesac said the total amount it ultimately recovers remains uncertain and could differ from the amount it has claimed.
The retailer disclosed the refund update Thursday while reporting first-quarter results. For the quarter ended May 3, net sales totaled $138.2 million, essentially unchanged from $138.4 million a year earlier. The company posted a net loss of $11.1 million, compared with a loss of $10.8 million in the year-ago period.
The company said the closure of its Best Buy shop-in-shop locations offset gains in its showroom and e-commerce businesses. Showroom sales increased 0.6% to $97.1 million, while online sales rose 7.1% to $35.7 million. Lovesac operates 281 showrooms nationwide.
The company updated its fiscal 2027 outlook to reflect the tariff refunds, projecting net sales between $700 million and $740 million and net income of $5 million to $12 million.
