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The Lovesac Company
(NASDAQ:LOVE)
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Rating:61Neutral
Price Target:
$19.50
▲(10.48% Upside)
Action:Reiterated
Date:07/17/26
The score is held back primarily by pressured operating profitability and an expensive valuation (high P/E with no dividend support). Offsetting those risks, the stock’s technical trend is constructive and management’s guidance points to full-year profitability with operational initiatives (e-commerce, showrooms, onshoring), though near-term margin and demand challenges remain.
Positive Factors
Modular DTC Ecosystem
Lovesac’s configurable Sactionals and accessory ecosystem create higher AOVs and recurring purchase opportunities (covers, add-ons). The direct-to-consumer model (showrooms + e-commerce) preserves margin, builds customer data and loyalty, and structurally supports lifetime value and marketing efficiency.
Negative Factors
Thin Operating Profitability
Operating profitability is compressed (EBITDA ~3%, net ~0.6%), leaving little buffer for cost shocks or weaker demand. Thin margins constrain reinvestment and make returns sensitive to volatility in freight, tariffs or SG&A, increasing execution risk over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Modular DTC Ecosystem
Lovesac’s configurable Sactionals and accessory ecosystem create higher AOVs and recurring purchase opportunities (covers, add-ons). The direct-to-consumer model (showrooms + e-commerce) preserves margin, builds customer data and loyalty, and structurally supports lifetime value and marketing efficiency.
Read all positive factors
The Lovesac Company Key Performance Indicators (KPIs)
Any
Revenue by Channel
Reveals how much revenue comes from different sales channels like online, showrooms, or partnerships, highlighting the company's strategic focus and adaptability to consumer shopping preferences.
Reveals how much revenue comes from different sales channels like online, showrooms, or partnerships, highlighting the company's strategic focus and adaptability to consumer shopping preferences.
Data provided by:
The Fly
The FlyThe Lovesac Company (LOVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$266.49M
Dividend YieldN/A
Average Volume (3M)231.58K
Price to Earnings (P/E)67.8
Beta (1Y)1.85
Revenue Growth1.54%
EPS Growth-70.61%
CountryUS
Employees917
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.26
Shares Outstanding14,638,418
10 Day Avg. Volume232,048
30 Day Avg. Volume231,583
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)0.88
Price to Sales (P/S)0.28
P/FCF Ratio7.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$22.67Price Target Upside28.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.56
Revenue Forecast (FY)$717.30M
The Lovesac Company Business Overview & Revenue Model
Company Description
The Lovesac Company designs, produces, and distributes distinctive furniture items. Their product range features "Sactionals," an innovative modular seating system made up of individual seats and sides, along with "Sacs," oversized foam-filled bea...
How the Company Makes Money
The Lovesac Company primarily makes money by selling home furniture and accessories directly to consumers, with revenue recognized from product sales (and related shipping and service fees, where applicable). Its largest revenue driver is typicall...
The Lovesac Company Earnings Call Summary
Earnings Call Date:Jun 11, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Neutral
The call balanced near‑term execution challenges (freight/tariff pressure, condensed margins, quarterly losses and softness in sub‑$6k transactions) with multiple strategic progress points (e‑commerce growth, product platform momentum, showroom performance, onshoring progress, improved marketing efficiency, strong cash position and positive full‑year guidance). Management positioned the business for multi‑quarter operational improvements and longer‑term profitable growth while prudently excluding uncertain tariff recoveries from guidance.Positive Updates
Revenue Relative Performance vs Category
Net sales were $138.2M, down $0.2M or 0.1% year-over-year, outperforming the furniture category which declined 2.2% and the high-end furniture segment which declined 5%.
Negative Updates
Gross Margin Pressure from Transportation and Tariffs
Reported gross margin declined 160 basis points to 52.1% of net sales (from 53.7% prior year), driven by increases of ~380 basis points in inbound transportation and tariff costs and ~110 basis points in outbound transportation and warehousing.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Relative Performance vs Category
Net sales were $138.2M, down $0.2M or 0.1% year-over-year, outperforming the furniture category which declined 2.2% and the high-end furniture segment which declined 5%.
Read all positive updates
Company Guidance
Lovesac's fiscal 2027 guidance calls for full-year net sales of $700M–$740M, adjusted EBITDA of $35M–$46M, and gross margins of 56%–57%, with advertising ~12% of sales, SG&A ~40%–41%, estimated net income of $5M–$12M (diluted EPS $0.34–$0.81 on ~14.8M diluted shares) and an effective tax rate ~39%–40% at the midpoint. For Q2 the company expects net sales of $157M–$166M, adjusted EBITDA between -$4M and $2M, gross margins 57.5%–58.5%, advertising ~14.5% of sales, SG&A 44.5%–46.5%, net loss $3M–$7M and basic loss per share $0.20–$0.48 on ~14.7M basic shares. Guidance includes approximately $3.6M of tariff refunds collected (the company is not counting potential future recoveries) and contemplates modest inventory increases versus the prior year.The Lovesac Company Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
60
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 696.94M | 697.12M | 680.63M | 700.26M | 651.18M | 498.24M |
| Gross Profit | 390.82M | 378.01M | 397.83M | 401.04M | 343.65M | 273.53M |
| EBITDA | 20.36M | 21.87M | 31.16M | 44.43M | 47.81M | 48.44M |
| Net Income | 3.81M | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M |
Balance Sheet | ||||||
| Total Assets | 500.97M | 534.68M | 532.25M | 482.18M | 408.63M | 369.08M |
| Cash, Cash Equivalents and Short-Term Investments | 57.00M | 101.85M | 83.73M | 87.04M | 43.53M | 92.39M |
| Total Debt | 190.87M | 192.51M | 183.02M | 175.50M | 146.57M | 108.51M |
| Total Liabilities | 295.44M | 315.98M | 315.89M | 264.68M | 215.53M | 211.27M |
| Stockholders Equity | 205.53M | 218.71M | 216.35M | 217.50M | 193.09M | 157.81M |
Cash Flow | ||||||
| Free Cash Flow | 35.00M | 26.18M | 17.46M | 47.23M | -46.92M | 17.53M |
| Operating Cash Flow | 55.35M | 49.32M | 38.98M | 76.44M | -21.38M | 32.65M |
| Investing Cash Flow | -20.63M | -24.02M | -21.52M | -29.21M | -25.55M | -15.12M |
| Financing Cash Flow | -4.62M | -7.18M | -20.76M | -3.73M | -1.94M | -3.48M |
The Lovesac Company Technical Analysis
Positive
17.65
Price Trends
16.18
Positive
15.08
Positive
14.61
Positive
Market Momentum
0.58
Negative
55.44
Neutral
64.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOVE, the sentiment is Positive. The current price of 17.65 is above the 20-day moving average (MA) of 16.97, above the 50-day MA of 16.18, and above the 200-day MA of 14.61, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 64.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOVE.
The Lovesac Company Risk Analysis
The Lovesac Company disclosed 56 risk factors in its most recent earnings report. The Lovesac Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Lovesac Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $579.67M | 14.61 | 8.46% | 7.86% | -4.79% | -30.21% | |
64 Neutral | $151.67M | -6.35 | -13.04% | 7.20% | -25.67% | -96.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $266.49M | 67.77 | 1.88% | ― | 1.54% | -70.61% | |
56 Neutral | $187.02M | 33.59 | 3.24% | 4.59% | 1.96% | 122.75% | |
55 Neutral | $109.32M | 10.82 | 16.29% | ― | 17.27% | -15.71% |
* Consumer Cyclical Sector Average
LOVE
The Lovesac Company
17.62
-1.19
-6.33%
BSET
Bassett Furniture
21.25
3.49
19.66%
ETD
Ethan Allen
23.09
-3.91
-14.48%
HOFT
Hooker Furniture
13.65
3.43
33.50%
KEQU
Kewaunee Scientific
36.26
-21.51
-37.23%
The Lovesac Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lovesac Appoints Andrew Farag as New Chief Financial Officer
Positive
Jun 15, 2026
On June 10, 2026, The Lovesac Company’s board appointed Andrew Farag, a veteran finance and operations executive with more than two decades of experience across consulting and corporate roles, as Executive Vice President, Chief Financial Off...
Executive/Board ChangesShareholder Meetings
Lovesac Shareholders Back Board, Executive Pay and Auditor
Positive
Jun 9, 2026
At its June 9, 2026 annual meeting, The Lovesac Company’s shareholders elected eight directors, including CEO Shawn Nelson and several incumbent and independent members, to continue serving on the board. The vote results suggest broad but no...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.