Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on LOVE

The Lovesac Company's recent performance was positively driven by revenue and profitability improvements, largely attributed to showroom expansion and new product launches. Despite macroeconomic uncertainty and tariff headwinds, the company remains debt-free with solid cash reserves. Management expects continued growth in revenue and profits for fiscal 2026. A recent earnings report revealed a quarterly loss of $0.45 per share, beating the Zacks Consensus Estimate of a loss of $0.72. The company also appointed Alan Boehme to its Board of Directors, effective August 27, 2025.

1.c. Company Highlights

2. The Lovesac Company's Q2 FY2026 Earnings: A Closer Look

The Lovesac Company reported Q2 FY2026 net sales of $160.5M, a 2.5% year-over-year increase, with omnichannel sales rising 0.9%. Earnings per share (EPS) came in at -$0.45, beating estimates of -$0.72. Gross margin was 56.4%, down 260 basis points due to transportation and discounting pressures. Adjusted EBITDA was $0.8M, down from $1.5M in the prior year.

Publication Date: Sep -15

📋 Highlights
  • Q2 Revenue Growth:: Net sales reached $160.5M, up 2.5% YoY amid a 4% furniture category decline, with omnichannel sales rising 0.9%.
  • Brand Strategy Shift:: Rebranded EverCouch as "Snug" under "Design for Life," expanding to 100 showrooms and launching 25+ new SKUs by 2026.
  • Collaboration Success:: Partnerships with Van Leeuwen, FIFA Club World Cup, and Michelob Ultra generated 40M+ earned impressions and boosted brand visibility.
  • Customer Acquisition:: Digital marketing and showroom expansion drove 0.9% omnichannel sales growth, with 400+ new showrooms planned by 2030.
  • Financial Outlook:: Adjusted gross margin pressure from tariffs and competition, but full-year profitability maintained with updated guidance of 2.5–4% sales growth.

Financial Performance and Guidance

The company's financial guidance for FY2026 includes sales growth of 4-9% to $710-$740M and adjusted EBITDA of $42-$55M. Gross margin is expected to improve to 57-58% by year-end. Q3 guidance includes sales of $151-$161M and an adjusted EBITDA loss of $1-$7M. The company ended Q2 with $34.2M in cash and no debt.

Operational Highlights and Strategy

The Lovesac Company is focusing on its "Design for Life" strategy, with the rebranding of EverCouch to Snug, a product line expansion, and showroom growth. The company is also investing in its resale platform, "Loved by Lovesac," and exploring new marketing strategies, including celebrity partnerships. CEO Shawn Nelson highlighted the long-term goal of reaching 3 million households by 2030.

Valuation and Metrics

With a P/E Ratio of 20.52, P/B Ratio of 1.34, and P/S Ratio of 0.38, the company's valuation metrics indicate a relatively high price-to-earnings ratio. The EV/EBITDA ratio is 7.26, and the ROE is 6.35%. These metrics suggest that the market is pricing in growth expectations, but the company's profitability and return on equity are still relatively modest.

3. NewsRoom

Card image cap

The Lovesac Company Announces Third Quarter Conference Call Date

Nov -26

Source: globenewswire.com

Card image cap

The Lovesac Company Appoints Wan Ling Martello to Its Board of Directors

Nov -20

Source: globenewswire.com

Card image cap

Brokerages Set The Lovesac Company (NASDAQ:LOVE) PT at $30.00

Nov -15

Source: defenseworld.net

Card image cap

The Lovesac Company Appoints Jacob Pat as Chief Technology and Digital Transformation Officer

Oct -21

Source: globenewswire.com

Card image cap

Lovesac Expands Its PillowSac Chair Line with the New PillowSac Chair Jr. -- Big Comfort, Now for Every Space

Oct -21

Source: prnewswire.com

Card image cap

The Lovesac Company Announces Participation in Upcoming Investor Conference

Oct -01

Source: globenewswire.com

Card image cap

Why Lovesac Stock Is Plummeting Today

Sep -11

Source: fool.com

Card image cap

The Lovesac Company (LOVE) Q2 2026 Earnings Call Transcript

Sep -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Sactionals

Expected Growth: 10.5%

Growing demand for modular and customizable furniture, increasing popularity of rearrangable living spaces, and rising consumer preference for comfort and style are driving the growth of Sactionals from The Lovesac Company.

Sacs

Expected Growth: 10.5%

Growing demand for comfortable and versatile furniture, increasing popularity of modular furniture, and rising consumer spending on home decor are expected to drive the growth of The Lovesac Company's patented foam-filled sacs.

Other

Expected Growth: 10.5%

Growing demand for Sactionals accessories and miscellaneous items, driven by increasing consumer preference for comfort and customization, is expected to drive growth in this segment.

7. Detailed Products

Sactionals

Modular, comfortable, and customizable seating solutions for living rooms, home theaters, and more.

Sacs

Comfortable, oversized, and stylish bean bag chairs for lounging and relaxation.

Sectionals

Configurable, stylish, and comfortable sectionals for living rooms, dens, and family rooms.

Pillows and Throws

Cozy, stylish, and comfortable pillows and throws to complement Lovesac's seating solutions.

Tables and Ottomans

Stylish, functional, and comfortable tables and ottomans to complement Lovesac's seating solutions.

8. The Lovesac Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The Lovesac Company's products are moderately substitutable, as customers can opt for traditional furniture or other alternative seating options. However, the company's unique patented technology and high-quality products reduce the threat of substitutes.

Bargaining Power Of Customers

The Lovesac Company's customers have limited bargaining power due to the company's strong brand reputation and unique products. Customers are willing to pay a premium for the company's high-quality products, reducing their bargaining power.

Bargaining Power Of Suppliers

The Lovesac Company's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for raw materials. However, the company's strong relationships with suppliers and its ability to negotiate prices reduce the suppliers' bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the furniture industry, including significant capital requirements and the need for specialized manufacturing capabilities. The Lovesac Company's patented technology and established brand reputation also deter new entrants.

Intensity Of Rivalry

The furniture industry is highly competitive, with many established players competing for market share. The Lovesac Company faces intense competition from traditional furniture retailers and online retailers, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.66%
Debt Cost 3.95%
Equity Weight 55.34%
Equity Cost 17.88%
WACC 11.66%
Leverage 80.69%

11. Quality Control: The Lovesac Company passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Interface

A-Score: 4.9/10

Value: 5.5

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Leggett & Platt

A-Score: 4.4/10

Value: 9.6

Growth: 1.8

Quality: 4.7

Yield: 6.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
American Woodmark

A-Score: 4.0/10

Value: 7.0

Growth: 6.0

Quality: 4.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Lovesac

A-Score: 3.9/10

Value: 8.1

Growth: 7.4

Quality: 4.3

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
MillerKnoll

A-Score: 3.9/10

Value: 7.3

Growth: 3.6

Quality: 2.4

Yield: 4.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Lifetime Brands

A-Score: 3.8/10

Value: 8.1

Growth: 2.2

Quality: 2.3

Yield: 7.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.96$

Current Price

13.96$

Potential

-0.00%

Expected Cash-Flows