The Lovesac Company (LOVE) AI Stock Analysis

• Market Cap: $195.63M
• Dividend Yield: N/A
• Average Volume (3M): 584.03K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.98
• Revenue Growth: -0.50%
• EPS Growth: 26.88%
• Country: US
• Employees: 920
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.45
• Shares Outstanding: 14,610,309
• 10 Day Avg. Volume: 603,733
• 30 Day Avg. Volume: 584,033
• PEG Ratio: -0.66
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 22.69
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 13.20
• 1Y Price Target: $28.75
• Price Target Upside: 114.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $14.50 ▲(8.29% Upside)

The Lovesac Company's overall stock score is driven by solid financial performance and a mixed earnings call outlook. While profitability and cash flow management are strong, technical indicators suggest bearish momentum, and valuation is moderate. The company faces challenges with decreased gross margins and increased net losses, but maintains a healthy balance sheet and market share growth.

Positive Factors

Market Share Growth

Increasing market share indicates a strengthening competitive position, suggesting effective strategies in customer acquisition and retention.

Healthy Balance Sheet

A strong balance sheet with ample cash reserves and no debt enhances financial stability and provides flexibility for strategic investments.

Successful Product Launches

Successful product launches, like the Snug platform, can drive future revenue growth and expand market presence, reinforcing product innovation.

Negative Factors

Decreased Gross Margin

A declining gross margin can pressure profitability, indicating challenges in cost management and pricing power amidst rising operational costs.

Net Loss Increase

Increasing net losses highlight financial strain, potentially impacting future investment capacity and necessitating improved cost control measures.

Decreased Internet Sales

A decline in internet sales suggests challenges in e-commerce strategy execution, crucial for growth in an increasingly digital retail environment.

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 direct sale of its furniture products, primarily through its online platform and retail showrooms. Key revenue streams include the sales of Sactionals, Sacs, and associated accessories. The company also benefits from a growing online presence, which has been bolstered by its e-commerce strategy, allowing for a wider customer reach. Additionally, Lovesac engages in partnerships with various home design and lifestyle brands, enhancing its product offerings and marketing efforts. The focus on high-quality, customizable products allows Lovesac to command premium pricing, contributing significantly to its overall earnings.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	686.36M	680.63M	700.26M	651.18M	498.24M	320.74M
Gross Profit	400.16M	397.83M	401.04M	343.65M	273.53M	174.77M
EBITDA	31.37M	28.36M	42.68M	47.81M	48.44M	21.49M
Net Income	13.68M	11.56M	23.86M	26.49M	47.49M	14.73M
Balance Sheet
Total Assets	483.74M	532.25M	482.18M	408.63M	369.08M	171.02M
Cash, Cash Equivalents and Short-Term Investments	26.90M	83.73M	87.04M	43.53M	92.39M	78.34M
Total Debt	191.64M	183.02M	175.50M	146.57M	108.51M	0.00
Total Liabilities	282.53M	315.89M	264.68M	215.53M	211.27M	63.07M
Stockholders Equity	201.21M	216.35M	217.50M	193.09M	157.81M	107.95M
Cash Flow
Free Cash Flow	-18.30M	17.46M	47.23M	-46.92M	17.53M	31.47M
Operating Cash Flow	4.61M	38.98M	76.44M	-21.38M	32.65M	40.52M
Investing Cash Flow	-22.91M	-21.52M	-29.21M	-25.55M	-15.12M	-9.05M
Financing Cash Flow	-27.16M	-20.76M	-3.73M	-1.94M	-3.48M	-1.67M

The Lovesac Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOVE, the sentiment is Negative. The current price of 13.39 is below the 20-day moving average (MA) of 14.38, below the 50-day MA of 16.33, and below the 200-day MA of 18.67, indicating a bearish trend. The MACD of -0.78 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 9.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOVE.

The Lovesac Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSET	66 Neutral	$126.55M	16.32	4.70%	5.49%	-2.74%	―
ETD	66 Neutral	$614.02M	13.07	9.96%	7.06%	-4.61%	-25.66%
LOVE	62 Neutral	$195.63M	21.48	6.45%	―	-0.50%	26.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KEQU	57 Neutral	$119.79M	10.11	19.99%	―	30.09%	-33.19%
HOFT	42 Neutral	$101.70M	―	-6.33%	9.73%	-6.46%	-1110.82%
SNBR	39 Underperform	$105.06M	―	―	―	-16.95%	-88.00%

The Lovesac Company Corporate Events

The Lovesac Company Reports Modest Sales Growth Amid Challenges

The Lovesac Company, based in Stamford, Connecticut, is a technology-driven home and technology brand known for its innovative and adaptable furniture products, including modular couches and immersive home theater systems.

Lovesac Co’s Earnings Call: Growth Amid Challenges

The recent earnings call for The Lovesac Co presented a mixed sentiment, highlighting both achievements and challenges. While the company celebrated continued sales growth and successful product launches, it also faced significant hurdles such as decreased gross margins and increased net losses. Despite maintaining a healthy balance sheet and gaining market share, concerns over tariff pressures and competitive discounting persist.

The Lovesac Company Appoints Alan Boehme to Board

On August 27, 2025, The Lovesac Company announced the appointment of Alan Boehme to its Board of Directors. Boehme, a seasoned technology and business leader, brings over three decades of experience in consumer goods, retail, and manufacturing, having worked with major brands like H&M Group and Coca-Cola. His expertise in digital transformation and retail technology aligns with Lovesac’s growth objectives and innovative business model, potentially enhancing the company’s operations and market positioning.

The most recent analyst rating on (LOVE) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on The Lovesac Company stock, see the LOVE Stock Forecast page.