Lovesac lowered its sales outlook for the year as it continues to contend with sluggish furniture demand.

Shares in premarket trading fell around 12%.

The furniture company said Thursday it now expects revenue of $690 million to $710 million for the full year, down from its prior range of $700 million to $740 million.

Still, the company raised its full-year profit outlook to factor in tariff refunds, now forecasting earnings per share of 98 cents to $1.26, compared with 34 cents to 81 cents previously.

For the current third quarter, the company projects sales of $140 million to $150 million and a loss of $9 million to $12 million. Analysts polled by FactSet were looking for sales of $156.8 million and a loss of $7.8 million.

Chief Executive Shawn David Nelson said the category is choppy, with the high end of its business remaining a source of strength as customers configure larger setups.

"While the environment remains dynamic, we are appropriately measured in our outlook for the balance of the year," Nelson said.

The company updated forecast as it swung to a second-quarter profit, driven by $21 million in tariff refunds received in the period.

Second-quarter profit came in at $7.4 million, or 51 cents a share, compared with a loss of $6.7 million, or 45 cents a share, a year earlier. Analysts polled by FactSet expected a loss of 36 cents a share.

Revenue ticked up 0.4% to $161.2 million, compared with analyst estimates of $161.6 million. The increase was primarily driven by new showrooms, offsetting a decrease in omni-channel comparable net sales.