The Lovesac Company (LOVE) AI Stock Analysis

• Market Cap: $310.11M
• Dividend Yield: N/A
• Average Volume (3M): 321.99K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.99
• Revenue Growth: -2.80%
• EPS Growth: -49.06%
• Country: US
• Employees: 920
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.73
• Shares Outstanding: 14,845,078
• 10 Day Avg. Volume: 269,869
• 30 Day Avg. Volume: 321,985
• PEG Ratio: -0.32
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.05
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: 4.69
• 1Y Price Target: $31.00
• Price Target Upside: 51.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: $21.50 ▲(4.88%Upside)

The Lovesac Company's stock score is driven by solid financial performance and successful product launches, which indicate potential for future growth. However, high valuation and revenue decline present challenges. Technical indicators suggest a mixed outlook, with short-term momentum but longer-term pressure. Strategic initiatives and leadership changes could mitigate some risks.

Positive Factors

Financial Performance

Lovesac reported impressive fiscal 4Q25 results, beating expectations for both revenue and profitability, marking a strong finish to a challenging year.

Market Strategy

The company showcased its ability to develop multiple product platforms and acquire customers via a robust omni-channel strategy, strengthening confidence in Lovesac as a unique secular growth story.

Product Innovation

The company is successfully reaping the benefits of years of strategic investment in product innovation, digital infrastructure, and customer acquisition, positioning itself to continue taking market share by driving long-term sustainable growth.

Negative Factors

Macroeconomic Conditions

Management attributed the softness primarily to the unfavorable macro environment, which is expected to continue, still projecting a 10% decline for the category.

Tariff Challenges

The actual amount of tariff payments will likely be higher due to the increased China tariffs on products that are too near term to move out, impacting costs.

The Lovesac Company Business Overview & Revenue Model

Company Description

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and accessories comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. As of January 30, 2022, the company operated 146 showrooms. It markets its products primarily through lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, kiosks, mobile concierges, and street locations in 39 states of the United States; and in store pop-up- shops and shop-in-shops. The Lovesac Company was founded in 1995 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

The Lovesac Company generates revenue through the sale of its core products: Sactionals and Sacs. Sactionals are modular sofas that allow customers to purchase different pieces and covers to create customized configurations, offering flexibility and longevity. Sacs are bean bag chairs available in various sizes and covers. The company's revenue model is primarily direct-to-consumer, facilitated through its online store and showrooms. Lovesac also generates income from sales of accessories and covers, which allow customers to refresh or modify their furniture's appearance. Strategic partnerships with technology companies have allowed Lovesac to integrate audio and other tech features into its products, potentially increasing their appeal and value proposition. The company's focus on sustainable and high-quality materials also helps differentiate its offerings in a competitive market.

The Lovesac Company Financial Statement Overview

Summary

The Lovesac Company demonstrates solid financial performance with strong profitability and efficient cash flow management. However, the increase in leverage and recent revenue decline pose potential risks. Continued focus on revenue growth and managing debt levels will be crucial for sustaining financial stability.

Income Statement

The company's income statement shows strong profitability with a consistent gross profit margin over the years. The net profit margin has improved significantly since 2020, indicating better cost management. However, revenue growth has been volatile, with a decline in the most recent year. The EBIT and EBITDA margins remain healthy, supporting overall profitability.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio has increased, suggesting higher leverage and potential risk. Return on equity is positive, indicating efficient use of shareholder funds. The equity ratio is stable, reflecting a solid financial foundation, although the increasing liabilities warrant close monitoring.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth in recent years, recovering from previous negative figures. The operating cash flow to net income ratio is favorable, indicating effective cash generation from operations. However, the free cash flow to net income ratio shows some volatility, suggesting potential challenges in capital expenditure management.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
680.63M	700.26M	651.54M	498.24M	320.74M
	Gross Profit
397.83M	388.44M	345.83M	273.35M	174.77M
	EBIT
13.65M	30.08M	39.02M	38.44M	14.88M
	EBITDA
28.36M	42.68M	47.81M	46.30M	21.49M
	Net Income Common Stockholders
11.56M	23.86M	26.49M	47.49M	14.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.73M	87.04M	43.53M	92.39M	78.34M
	Total Assets
532.25M	482.18M	418.05M	371.58M	171.02M
	Total Debt
183.02M	175.50M	157.85M	112.96M	0.00
	Net Debt
99.29M	88.47M	114.32M	20.56M	-78.34M
	Total Liabilities
315.89M	264.68M	224.79M	215.35M	63.07M
	Stockholders Equity
216.35M	217.50M	193.26M	156.23M	107.95M
Cash Flow		Free Cash Flow
17.95M	47.23M	-46.92M	17.53M	31.47M
	Operating Cash Flow
38.98M	76.44M	-21.38M	34.02M	40.52M
	Investing Cash Flow
-21.52M	-29.21M	-25.55M	-16.49M	-9.05M
	Financing Cash Flow
-20.76M	-3.73M	-1.94M	-3.48M	-1.67M

The Lovesac Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 20.5 is above the 20-day moving average (MA) of 19.60, above the 50-day MA of 19.22, and below the 200-day MA of 24.19, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOVE.

The Lovesac Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	74 Outperform	$169.54M	12.65	9.48%	2.12%	7.24%	-9.51%
KEQU	73 Outperform	$112.72M	6.68	33.52%	―	9.44%	102.67%
LOVE	65 Neutral	$310.11M	34.12	5.33%	―	-2.80%	-49.06%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
HOFT	57 Neutral	$129.18M	―	-5.89%	7.62%	-8.26%	-233.72%
BSET	54 Neutral	$137.53M	―	-3.83%	5.06%	-11.78%	-13.89%
SNBR	45 Neutral	$209.83M	―	9.10%	―	-12.36%	37.69%

The Lovesac Company Corporate Events

Lovesac Elects Board Directors, Fails Compensation Approval

At the 2025 Annual Meeting of Stockholders held on June 10, 2025, The Lovesac Company elected six directors to its Board, with Shawn Nelson receiving the highest votes. However, the advisory approval for the fiscal 2025 compensation for named executive officers was not passed, while the appointment of Deloitte & Touche LLP as the independent auditor for the fiscal year ending February 1, 2026, was ratified.

The most recent analyst rating on (LOVE) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on The Lovesac Company stock, see the LOVE Stock Forecast page.

Lovesac Announces Board Member Resignation

On May 22, 2025, The Lovesac Company announced that Mr. John Grafer will resign from the Board of Directors and all its committees, effective June 10, 2025, coinciding with the company’s annual meeting. His resignation is not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (LOVE) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on The Lovesac Company stock, see the LOVE Stock Forecast page.

The Lovesac Company Announces Board Member Resignation

On April 3, 2025, The Lovesac Company announced that Jack A. Krause will resign from its Board of Directors after the annual meeting of stockholders on June 10, 2025. His resignation is not due to any disagreements with the company’s operations, policies, or practices, suggesting a smooth transition and continuity in the company’s governance.