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The Lovesac Company
(NASDAQ:LOVE)
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Rating:61Neutral
Price Target:
$15.50
▼(-2.64% Downside)
Action:Reiterated
Date:09/15/26
Overall score reflects improving fundamentals (re-accelerating TTM growth, margin rebound, and solid free cash flow) balanced against a weak technical setup (below key moving averages with negative MACD) and a mixed near-term outlook from guidance (Q3 loss expected despite positive full-year targets). Valuation is supportive with a ~12x P/E but is not strong enough to offset the bearish trend signals.
Positive Factors
Revenue and Profitability Rebound
The return to double-digit trailing revenue growth and stronger profitability indicates improving demand conversion and operating execution. If sustained, the rebound can rebuild earnings power and provide more internal funding for product development, showrooms, and customer acquisition over the next several quarters.
Negative Factors
Demand and Traffic Pressure
Comparable-sales contraction and weaker traffic show that the business is still exposed to cautious discretionary spending, especially among lower-priced customers. Longer conversion times can reduce showroom productivity and make sustained revenue growth dependent on continued share gains and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Rebound
The return to double-digit trailing revenue growth and stronger profitability indicates improving demand conversion and operating execution. If sustained, the rebound can rebuild earnings power and provide more internal funding for product development, showrooms, and customer acquisition over the next several quarters.
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
$211.88M
Dividend YieldN/A
Average Volume (3M)287.93K
Price to Earnings (P/E)11.8
Beta (1Y)1.88
Revenue Growth1.07%
EPS Growth52.13%
CountryUS
Employees1,900
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.22
Shares Outstanding14,423,433
10 Day Avg. Volume210,925
30 Day Avg. Volume287,930
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 Cap1.69
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit0.88
Enterprise Value/Ebitda8.88
Forecast
1Y Price Target
$23.17Price Target Upside45.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.1
Revenue Forecast (FY)$698.82M
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:Sep 10, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, supported by record non-Q4 quarterly sales, market-share gains, strong premium-customer demand, improved conversion, a broad innovation pipeline, tariff refunds, and a healthy balance sheet. However, the company continues to face comparable-sales, traffic, under-$6,000 demand, margin, and near-term profitability pressures, and product-timing delays led to a more conservative outlook. Highlights significantly outweighed the lowlights.Positive Updates
Record Second-Quarter Sales and Market-Share Gains
Lovesac delivered its highest quarterly sales ever outside of Q4, with net sales of $161.2 million, up 0.4% year over year. Results were within guidance, and management stated that the company continued to gain market share despite a challenging operating backdrop.
Negative Updates
Comparable-Sales Decline and Pressure Below $6,000
Omni-channel comparable sales declined 1.9%. The under-$6,000 segment improved its run rate in Q2 but had not returned to growth, reflecting pressure from inflation, rising rates, and higher gas prices. Management also said some customers are taking longer to convert.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Second-Quarter Sales and Market-Share Gains
Lovesac delivered its highest quarterly sales ever outside of Q4, with net sales of $161.2 million, up 0.4% year over year. Results were within guidance, and management stated that the company continued to gain market share despite a challenging operating backdrop.
Read all positive updates
Company Guidance
For the third quarter, Lovesac estimates net sales of $140 million-$150 million, gross margins of 54.5%-55.5%, advertising and marketing of approximately 14.5% as a percent of net sales, SG&A of 47.5%-49.5% of net sales, a net loss between negative $9 million and negative $12 million, adjusted EBITDA loss between negative $7 million and negative $10 million, and basic loss per common share between $0.62 and $0.83, with 14.5 million basic weighted average shares outstanding; for the full year, it estimates net sales of $690 million-$710 million, fourth quarter net revenues of $250.5 million-$260.5 million, gross margins of 58.5%-59.5%, advertising and marketing of approximately 12.5% as a percent of net sales, SG&A of approximately 40.5%-41.5% as a percent of net sales, net income between $14.5 million and $18.5 million, adjusted EBITDA between $31.5 million and $35.5 million, diluted income per common share in the range of $0.98 to $1.26, approximately 14.6 million estimated diluted weighted average shares outstanding, and a full-year effective tax rate of approximately 36%-38%; guidance assumes existing home sales and housing-related demand remain generally consistent with current trends, customer discretionary spending remains in line with recent purchasing patterns, reflects freight, transportation, logistics costs, and tariff rates known today, includes only tariff refunds already received except for adjusted EBITDA, and incorporates a more prudent risk-adjusted approach.The Lovesac Company Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
64
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 697.65M | 697.12M | 680.63M | 700.26M | 651.18M | 498.24M |
| Gross Profit | 406.27M | 378.01M | 397.83M | 401.04M | 343.65M | 273.53M |
| EBITDA | 40.30M | 21.87M | 31.16M | 44.43M | 47.81M | 48.44M |
| Net Income | 17.89M | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M |
Balance Sheet | ||||||
| Total Assets | 538.96M | 534.68M | 532.25M | 482.18M | 408.63M | 369.08M |
| Cash, Cash Equivalents and Short-Term Investments | 68.80M | 101.85M | 83.73M | 87.04M | 43.53M | 92.39M |
| Total Debt | 191.02M | 192.51M | 183.02M | 175.50M | 146.57M | 108.51M |
| Total Liabilities | 329.01M | 315.98M | 315.89M | 264.68M | 215.53M | 211.27M |
| Stockholders Equity | 209.95M | 218.71M | 216.35M | 217.50M | 193.09M | 157.81M |
Cash Flow | ||||||
| Free Cash Flow | 44.70M | 26.18M | 17.46M | 47.23M | -46.92M | 17.53M |
| Operating Cash Flow | 67.11M | 49.32M | 38.98M | 76.44M | -21.38M | 32.65M |
| Investing Cash Flow | -23.03M | -24.02M | -21.52M | -29.21M | -25.55M | -15.12M |
| Financing Cash Flow | -9.47M | -7.18M | -20.76M | -3.73M | -1.94M | -3.48M |
The Lovesac Company Technical Analysis
Positive
15.92
Price Trends
15.26
Positive
15.96
Negative
15.13
Positive
Market Momentum
-0.13
Negative
55.39
Neutral
71.33
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 15.92 is above the 20-day moving average (MA) of 14.75, above the 50-day MA of 15.26, and above the 200-day MA of 15.13, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 71.33 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $341.91M | 12.57 | 19.78% | 1.08% | 4.10% | 73.26% | |
68 Neutral | $498.54M | 12.60 | 8.40% | 24.32% | -5.72% | -22.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $211.88M | 11.82 | 8.69% | ― | 1.07% | 52.13% | |
56 Neutral | $137.29M | -7.59 | -10.59% | 3.61% | -28.13% | -38.44% | |
56 Neutral | $1.17B | 14.39 | 7.86% | 3.38% | 0.20% | -10.08% | |
53 Neutral | $185.49M | 27.55 | 4.12% | 3.72% | 1.40% | -11.99% |
* Consumer Cyclical Sector Average
LOVE
The Lovesac Company
15.34
0.34
2.27%
BSET
Bassett Furniture
22.03
7.29
49.47%
ETD
Ethan Allen
20.79
-1.55
-6.93%
FLXS
Flexsteel
84.98
49.47
139.32%
HOFT
Hooker Furniture
12.77
4.13
47.85%
LZB
La-Z-Boy Incorporated
30.40
-1.60
-5.01%
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...
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.