The Lovesac Company (LOVE)
NASDAQ:LOVE
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The Lovesac Company
(NASDAQ:LOVE)
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Rating:54Neutral
Price Target:
$15.00
▲(4.38% Upside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by compressed profitability, muted revenue growth, and a more levered financial profile, alongside a high P/E that offers limited margin of safety. Technicals provide some support via improving intermediate-term momentum, but overbought indicators and a cautious near-term earnings guide (Q1 loss expected amid tariff/freight pressure) temper the overall outlook.
Positive Factors
Digital channel growth
Sustained double‑digit internet growth and record web satisfaction indicate a durable direct channel advantage. A stronger digital platform lowers customer acquisition costs, scales marketing efficiency, and supports repeat purchases and cross‑sell of covers/accessories, improving unit economics over multiple years.
Negative Factors
Compressed profitability
Sharp margin compression over several years materially reduces the earnings buffer and operational flexibility. Persistently low net margins increase sensitivity to cost shocks and constrain reinvestment capacity, making multi‑year profitability improvements necessary to restore returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital channel growth
Sustained double‑digit internet growth and record web satisfaction indicate a durable direct channel advantage. A stronger digital platform lowers customer acquisition costs, scales marketing efficiency, and supports repeat purchases and cross‑sell of covers/accessories, improving unit economics over multiple years.
Read all positive factors
The Lovesac Company (LOVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$210.05M
Dividend YieldN/A
Average Volume (3M)330.85K
Price to Earnings (P/E)47.6
Beta (1Y)1.97
Revenue Growth0.13%
EPS Growth-14.51%
CountryUS
Employees920
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.19
Shares Outstanding14,617,106
10 Day Avg. Volume564,044
30 Day Avg. Volume330,848
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)0.88
Price to Sales (P/S)0.28
P/FCF Ratio7.39
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit0.79
Enterprise Value/Ebitda15.03
Forecast
1Y Price Target
$24.00Price Target Upside67.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.84
Revenue Forecast (FY)$735.74M
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,...
How the Company Makes Money
The Lovesac Company makes money primarily by selling its furniture and related accessories directly to consumers. Its key revenue stream is product sales of Sactionals, which are modular sectional components (bases and sides) that customers can co...
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 Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Neutral
The call presented a balanced view: the company delivered modest revenue growth, full‑year profitability and positive free cash flow while building strategic advantages (digital momentum, showroom productivity, product innovation and a move to onshore manufacturing). However, meaningful near‑term margin and earnings pressure from tariffs, freight, promotions and a cautious Q1 FY27 guide temper the outlook. Management emphasized long‑term optionality and investments that should improve unit economics over multiple years but acknowledged short‑term uncertainty.Positive Updates
Revenue Growth and Year‑End Financial Strength
Full‑year net sales of $697.1M, up 2.4% year‑over‑year; Q4 net sales $248.0M, up 2.7% YoY. Company delivered full‑year positive free cash flow, ended Q4 with $101.9M cash, $36M committed availability, no borrowings and no debt, and reduced inventory 14% YoY.
Negative Updates
Gross Margin Pressure from Tariffs and Logistics
Q4 gross margin declined 230 basis points to 58.1% (from 60.4% prior year). Inbound transportation and tariff increases contributed ~300 bps of pressure and outbound logistics +90 bps; higher promotional discounting partially offset product margin gains.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth and Year‑End Financial Strength
Full‑year net sales of $697.1M, up 2.4% year‑over‑year; Q4 net sales $248.0M, up 2.7% YoY. Company delivered full‑year positive free cash flow, ended Q4 with $101.9M cash, $36M committed availability, no borrowings and no debt, and reduced inventory 14% YoY.
Read all positive updates
Company Guidance
Lovesac's fiscal 2027 guidance calls for net sales of $700–750M, adjusted EBITDA of $33–44M, gross margin of 56–57%, advertising of ~12% of sales, SG&A of ~40–41% of sales, net income of $5–14M and diluted EPS of $0.34–0.95 (≈14.7M diluted weighted average shares), with ~8 net new showrooms (± a couple), ~ $20M capex and a modest inventory build expected. For Q1 they forecast net sales of $133–139M, an adjusted EBITDA loss of $(12)–(16)M, gross margin of 51.5–52.5%, advertising ~13% of sales, SG&A 51–53% of sales, net loss of $(14)–(18)M and diluted loss per share $(0.95)–(1.22) (14.7M shares). Management is planning on a low-single-digit category decline, has baked in tariff and shipping pressures (no assumed IEEPA tariff recovery), expects a full‑year tax rate closer to ~30%, and noted an expanded share‑repurchase authorization of ~$40M incremental (total ~ $54.1M).The Lovesac Company Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 697.12M | 680.63M | 700.26M | 651.18M | 498.24M |
| Gross Profit | 378.01M | 397.83M | 401.04M | 343.65M | 273.53M |
| EBITDA | 20.57M | 28.36M | 42.68M | 47.81M | 48.44M |
| Net Income | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M |
Balance Sheet | |||||
| Total Assets | 534.68M | 532.25M | 482.18M | 408.63M | 369.08M |
| Cash, Cash Equivalents and Short-Term Investments | 101.85M | 83.73M | 87.04M | 43.53M | 92.39M |
| Total Debt | 192.51M | 183.02M | 175.50M | 146.57M | 108.51M |
| Total Liabilities | 315.98M | 315.89M | 264.68M | 215.53M | 211.27M |
| Stockholders Equity | 218.71M | 216.35M | 217.50M | 193.09M | 157.81M |
Cash Flow | |||||
| Free Cash Flow | 26.18M | 17.46M | 47.23M | -46.92M | 17.53M |
| Operating Cash Flow | 49.32M | 38.98M | 76.44M | -21.38M | 32.65M |
| Investing Cash Flow | -24.02M | -21.52M | -29.21M | -25.55M | -15.12M |
| Financing Cash Flow | -7.18M | -20.76M | -3.73M | -1.94M | -3.48M |
The Lovesac Company Technical Analysis
Positive
14.37
Price Trends
12.78
Positive
13.42
Positive
15.48
Negative
Market Momentum
0.47
Negative
65.86
Neutral
93.33
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 14.37 is above the 20-day moving average (MA) of 11.97, above the 50-day MA of 12.78, and below the 200-day MA of 15.48, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 65.86 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, 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 53 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $566.44M | 12.45 | 9.20% | 7.86% | -4.26% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $97.49M | 40.94 | 16.29% | ― | 43.02% | -37.24% | |
54 Neutral | $210.05M | 47.61 | 2.02% | ― | 0.13% | -14.51% | |
54 Neutral | $145.18M | -1.14 | -15.57% | 7.20% | -12.09% | -204.66% | |
48 Neutral | $121.23M | 29.10 | 3.24% | 4.59% | -2.74% | ― | |
43 Neutral | $26.98M | -1.49 | 16.35% | ― | -16.95% | -88.00% |
* Consumer Cyclical Sector Average
LOVE
The Lovesac Company
14.37
1.23
9.36%
BSET
Bassett Furniture
14.02
-0.62
-4.26%
ETD
Ethan Allen
22.26
-2.26
-9.22%
HOFT
Hooker Furniture
13.47
4.93
57.73%
KEQU
Kewaunee Scientific
34.01
-2.05
-5.69%
SNBR
Sleep Number
1.18
-4.03
-77.33%
The Lovesac Company Corporate Events
Business Operations and StrategyStock Buyback
Lovesac Expands Share Repurchase Authorization, Signals Confidence
Positive
Mar 26, 2026
On March 26, 2026, The Lovesac Company announced that its board had authorized the repurchase of up to an additional $40 million of its outstanding common stock, increasing the total capacity of its share buyback program to approximately $54.1 mil...
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.