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The Lovesac Company (LOVE)
NASDAQ:LOVE
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The Lovesac Company
(NASDAQ:LOVE)
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Rating:57Neutral
Price Target:
$13.00
▼(-5.45% Downside)
The Lovesac Company's overall stock score reflects solid financial performance and strategic initiatives. However, technical indicators suggest bearish momentum, and high valuation metrics pose risks. The earnings call provided mixed signals with strategic positives but highlighted financial challenges.
The Lovesac Company (LOVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$200.99M
Dividend YieldN/A
Average Volume (3M)594.58K
Price to Earnings (P/E)63.4
Beta (1Y)2.00
Revenue Growth0.13%
EPS Growth-14.51%
CountryUS
Employees920
SectorN/A
Sector StrengthN/A
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.72
Shares Outstanding14,617,106
10 Day Avg. Volume713,430
30 Day Avg. Volume594,577
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)1.83
Price to Sales (P/S)0.58
P/FCF Ratio22.69
Enterprise Value/Market Cap2.13
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit1.07
Enterprise Value/Ebitda13.80
Forecast
1Y Price Target
$23.17Price Target Upside68.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
The Lovesac Company Business Overview & Revenue Model
Company DescriptionThe Lovesac Company (LOVE) specializes in innovative furniture designed for modern living, primarily focusing on modular sofas and bean bag chairs. The company operates in the home furnishings sector, offering a range of customizable and high-quality products that cater to the evolving needs of consumers. Lovesac's core offerings include its signature Sactionals, which can be reconfigured and accessorized, as well as Sac, its oversized bean bag chairs. The company emphasizes sustainability and durability in its designs, appealing to environmentally conscious consumers.
How the Company Makes MoneyLovesac generates revenue through direct sales of its furniture products, primarily through its online platform and a growing network of retail showrooms. The company’s key revenue streams include the sale of Sactionals, Sac products, and various accessories such as covers and cushions. Lovesac also benefits from a strong focus on customer experience, which drives repeat purchases and referrals. Additionally, the company has established partnerships with various retailers and online platforms, enhancing its distribution reach. Seasonal promotions and marketing campaigns further contribute to sales growth, while the brand's emphasis on quality and innovation helps maintain a loyal customer base.
The Lovesac Company Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Apr 09, 2026
Earnings Call Sentiment Neutral
The earnings call highlights a mix of achievements in product innovation and strategic marketing shifts, alongside challenges in revenue guidance and gross margin pressures. While the company is making strides in domestic manufacturing and leadership, macroeconomic conditions and consumer behavior have impacted financial performance.Q3-2026 Updates
Positive Updates
Successful Product Launches
The launch of the Snug platform and the Pillow Sac Chair Junior has been positively received, contributing to sales growth. The Snug has seen strong performance online and is expected to drive future growth.
Expansion of Domestic Manufacturing
Lovesac is on track to begin domestic production of fractional insert pieces by next summer, with potential gross margin benefits and enhanced product features.
Strong Performance in Key Sales Periods
The combined Black Friday and Cyber Monday holiday period achieved strong growth compared to last year, recording the strongest Cyber Monday in the company's history.
Innovative Marketing and Customer Engagement
Shifts in marketing strategy, including increased use of digital channels and influencer partnerships, have begun to show positive results, particularly in the fourth quarter.
Strengthened Leadership and Governance
Jacob Pat joined as Chief Technology Officer, and the board welcomed Wan Ling Martello, enhancing the company's expertise in digital transformation and consumer engagement.
Negative Updates
Missed Revenue Guidance
Third-quarter net sales were $150.2 million, approximately $1 million below guidance due to macroeconomic challenges and consumer uncertainty.
Decreased Gross Margin
Gross margin decreased by 240 basis points to 56.1% due to increased tariffs, transportation costs, and promotional intensity.
Challenges in Smaller Transactions
Weakness was observed in smaller transactions below $6,000, impacting overall sales performance in the third quarter.
Increased Operating Loss
Operating loss for the quarter was $15.8 million, compared to $7.7 million in the previous year, driven by higher SG&A expenses and marketing costs.
Company Guidance
During The Lovesac Company's third quarter fiscal 2026 earnings call, the guidance provided highlighted several key financial metrics and strategic initiatives aimed at navigating a challenging macroeconomic environment. The company reported third-quarter net sales of $150.2 million, slightly below the guidance range, with adjusted EBITDA and net loss within the expected range. Gross margin decreased by 240 basis points due to increased tariffs and transportation costs, while omnichannel comparable net sales saw a 1.2% decline. The company emphasized its robust balance sheet with healthy inventory and net cash levels, anticipating an optimized inventory carry by year-end. For the full fiscal year 2026, Lovesac projected net sales of $685 million to $705 million and adjusted EBITDA between $37 million and $43 million. The fourth quarter outlook included net sales of $230 million to $256 million and adjusted EBITDA of $51 million to $56 million. Strategic plans include investing in new product innovations, focusing on the Design for Life platforms, and enhancing customer acquisition engines, with a goal to achieve modest market share gains despite a down market. The company also announced plans to slow physical store expansion and bolster its marketing strategy through digital channels and influencer partnerships.The Lovesac Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
68
Positive
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The Lovesac Company Technical Analysis
Positive
13.75
Price Trends
13.79
Positive
16.03
Negative
17.34
Negative
Market Momentum
>-0.01
Negative
52.59
Neutral
73.78
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 13.75 is above the 20-day moving average (MA) of 13.47, below the 50-day MA of 13.79, and below the 200-day MA of 17.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOVE.
The Lovesac Company Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
70 Outperform | $110.33M | 9.87 | 18.18% | ― | 43.02% | -37.24% | |
66 Neutral | $151.31M | 19.51 | 4.70% | 4.59% | -2.74% | ― | |
66 Neutral | $613.51M | 13.06 | 9.96% | 7.51% | -4.61% | -25.66% | |
57 Neutral | $200.99M | 63.39 | 3.77% | ― | 0.13% | -14.51% | |
49 Neutral | $117.58M | -3.72 | -11.27% | 8.73% | -12.09% | -204.66% | |
42 Neutral | $193.72M | -2.48 | ― | ― | -16.95% | -88.00% |
* Sector Average
LOVE
The Lovesac Company
13.94
-10.81
-43.68%
BSET
Bassett Furniture
17.22
4.12
31.45%
ETD
Ethan Allen
24.11
-2.76
-10.27%
HOFT
Hooker Furniture
10.50
-3.90
-27.08%
KEQU
Kewaunee Scientific
38.88
-14.15
-26.68%
SNBR
Sleep Number
8.46
-9.41
-52.66%
The Lovesac Company Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Lovesac Appoints Wan Ling Martello to Board
Positive
Nov 20, 2025
On November 20, 2025, The Lovesac Company announced the appointment of Wan Ling Martello to its Board of Directors. Ms. Martello brings a wealth of experience from her leadership roles at companies like Nestlé and Walmart, and her expertise in digital transformation and consumer engagement aligns with Lovesac’s mission as a technology-driven furniture company. Her appointment is expected to provide strategic insights as the company navigates its next phase of growth.
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.