olivLaw · US equity research
The Lovesac Company LOVE
Retail-Furniture Stores · SIC 5712 · Vertical: Home furniture and electronics stores (SIC 57xx)
Lovesac designs and sells premium modular furniture, mainly Sactionals couches, through its own showrooms and online channel. In the second quarter of fiscal 2027 the company reported a record second-quarter revenue, but profitability was largely supported by tariff refunds amid volatile demand.
At the close of 02 Nov 2026, The Lovesac Company (LOVE) stock was 16.77 USD (+2.69% on the day), with market capitalisation 241.9 m USD, P/E 13.8 on diluted EPS of 1.21 USD over the last 12 months, beta 1.44, 52-week range 10.54–18.70 USD. Latest reported quarter (Q2 2027): revenue of 161.2 m USD (+0.4% YoY), net income of 7.4 m USD, diluted EPS 0.51 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 65.0
- strong (55–70)
- Bollinger (20, 2)
- 13.49 – 16.55
- above the upper band · %B 1.07 · band width 20.4%
- SMA 50 / 200
- 15.12 / 15.14
- mixed trend
- MACD (12, 26, 9)
- 0.34 / 0.09
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +14.1% | −2.3% | +16.4 pp | — |
| 3 months | −0.4% | −0.8% | +0.4 pp | — |
| 6 months | +8.8% | +4.7% | +4.0 pp | — |
| Year to date | +13.7% | +10.2% | +3.5 pp | — |
| 1 year | +20.9% | +10.3% | +10.7 pp | +7.4% |
| 3 years | −4.5% | +73.0% | −77.5 pp | +15.7% |
| 5 years | −79.1% | +61.8% | −140.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 02 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 149.9 m | 241.5 m | 138.4 m | 160.5 m | 150.2 m | 248.0 m | 138.2 m | 161.2 m |
| Cost of revenue | 62.3 m | 95.7 m | 64.0 m | 69.9 m | 65.9 m | 104.0 m | 66.2 m | 51.0 m |
| Gross profit | 87.6 m | 145.8 m | 74.4 m | 90.6 m | 84.2 m | 144.0 m | 72.0 m | 110.3 m |
| Research & development | 2.3 m | 1.6 m | 2.2 m | 2.1 m | 2.3 m | 400.0 k | 2.1 m | 1.8 m |
| SG&A | 71.7 m | 67.6 m | 67.1 m | 72.1 m | 75.0 m | 69.8 m | 68.6 m | 72.3 m |
| Operating income | -7.7 m | 47.6 m | -15.0 m | -8.8 m | -15.8 m | 44.9 m | -17.4 m | 10.9 m |
| Depreciation & amortisation | 3.7 m | 3.7 m | 3.5 m | 3.8 m | 4.0 m | 3.7 m | 4.1 m | 4.2 m |
| Pre-tax income | -7.0 m | 48.3 m | -14.6 m | -8.7 m | -15.6 m | 45.6 m | -16.7 m | 12.2 m |
| Income tax | -2.1 m | 13.0 m | -3.8 m | -2.1 m | -5.0 m | 13.5 m | -5.6 m | 4.7 m |
| Net income | -4.9 m | 35.3 m | -10.8 m | -6.7 m | -10.6 m | 32.1 m | -11.1 m | 7.4 m |
| Diluted EPS | -0.32 | 1.73 ≈ | -0.73 | -0.45 | -0.72 | 2.18 ≈ | -0.76 | 0.51 |
| Operating cash flow | -4.2 m ≈ | 44.0 m | -41.4 m | 12.2 m ≈ | -4.9 m ≈ | 83.4 m | -35.4 m | 23.9 m ≈ |
| Capex | 2.4 m ≈ | 5.3 m | 8.6 m | 4.3 m ≈ | 5.3 m ≈ | 4.9 m | 5.0 m | 6.6 m ≈ |
| Share repurchases | 3.4 m ≈ | 16.5 m | 6.0 m | 0 ≈ | 0 ≈ | 0 | 2.4 m | 4.9 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 18 percentile of its own 22-quarter history (min 11.3, median 35.3, max 465.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | ⚠ 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 165.9 m | 233.4 m | 320.7 m | 498.2 m | 651.2 m | 700.3 m | 680.6 m | 697.1 m |
| Revenue YoY | +62.9% | — | +37.4% | +55.3% | +30.7% | +7.5% | −2.8% | +2.4% |
| Net income | -6.7 m | -15.2 m | 14.7 m | 47.5 m | 26.5 m | 23.9 m | 11.6 m | 4.1 m |
| Net income YoY | unavailable | — | unavailable | +222.5% | −44.2% | −9.9% | −51.6% | −64.8% |
| Diluted EPS | unavailable | -1.07 | 0.96 | 2.96 | 1.66 | 1.45 | 0.69 | 0.28 |
| Diluted EPS YoY | unavailable | — | unavailable | +208.3% | −43.9% | −12.7% | −52.4% | −59.4% |
| net % | -4.0% | -6.5% | 4.6% | 9.5% | 4.1% | 3.4% | 1.7% | 0.6% |
| Free cash flow | -17.8 m | -21.5 m | 32.1 m | 18.0 m | -46.6 m | 47.7 m | 18.0 m | 26.2 m |
The series breaks before 2020: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 01 Feb 2026
- Cash
- 101.9 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 218.7 m USD
- Total assets
- 534.7 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.61x
- ROE
- 1.9%
- ROA
- 0.8%
- FCF margin
- 3.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 320.7 m | 498.2 m | 651.2 m | 700.3 m | 680.6 m | 697.1 m | SEC (XBRL)· 02 Apr 2026verified |
| Cost of revenue | 146.0 m | 224.7 m | 307.5 m | 299.2 m | 282.8 m | 303.9 m | SEC (XBRL)· 02 Apr 2026verified |
| Gross profit | 174.8 m | 273.5 m | 343.7 m | 401.0 m | 397.8 m | 393.2 m | SEC (XBRL)· 02 Apr 2026verified |
| Research & development | — | — | 8.4 m | 7.7 m | 8.4 m | 7.0 m | SEC (XBRL)· 02 Apr 2026verified |
| SG&A | 111.4 m | 160.0 m | 216.0 m | 264.3 m | 281.5 m | 284.0 m | SEC (XBRL)· 02 Apr 2026verified |
| Operating income | 14.9 m | 40.6 m | 37.0 m | 30.1 m | 13.6 m | 5.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Depreciation & amortisation | 6.1 m | 7.2 m | 10.5 m | 12.2 m | 14.3 m | 14.9 m | SEC (XBRL)· 02 Apr 2026verified |
| EBITDA | 21.0 m ≈ | 47.7 m ≈ | 47.4 m ≈ | 42.3 m ≈ | 27.9 m ≈ | 20.3 m ≈ | SEC (XBRL)· 02 Apr 2026derived |
| Interest expense | 87.7 k | — | — | — | — | — | SEC (XBRL)· 14 Apr 2021verified |
| Pre-tax income | 14.8 m | 40.4 m | 36.8 m | 31.8 m | 16.4 m | 6.7 m | SEC (XBRL)· 02 Apr 2026verified |
| Income tax | 86.0 k | -7.1 m | 10.4 m | 8.0 m | 4.9 m | 2.6 m | SEC (XBRL)· 02 Apr 2026verified |
| Net income | 14.7 m | 47.5 m | 26.5 m | 23.9 m | 11.6 m | 4.1 m | SEC (XBRL)· 02 Apr 2026verified |
| Diluted EPS | 0.96 | 2.96 | 1.66 | 1.45 | 0.69 | 0.28 | SEC (XBRL)· 02 Apr 2026verified |
| Weighted average diluted shares | 15.3 m | 16.1 m | 16.0 m | 16.5 m | 16.8 m | 14.7 m | SEC (XBRL)· 02 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 78.3 m | 92.4 m | 43.5 m | 87.0 m | 83.7 m | 101.9 m | SEC (XBRL)· 02 Apr 2026verified |
| Inventories | 3.2 m | — | — | — | — | — | SEC (XBRL)· 14 Apr 2021verified |
| Current assets | 143.4 m | 221.7 m | 187.7 m | 214.4 m | 246.6 m | 236.6 m | SEC (XBRL)· 02 Apr 2026verified |
| Property, plant & equipment, net | 25.9 m | 34.1 m | 52.9 m | 70.8 m | 78.0 m | 86.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Goodwill | 144.0 k | 144.0 k | 144.0 k | 144.0 k | 144.0 k | 144.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Intangibles (excl. goodwill) | 1.5 m | 1.4 m | 1.4 m | 1.5 m | 1.6 m | 2.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Total assets | 171.0 m | 369.1 m | 408.6 m | 482.2 m | 532.3 m | 534.7 m | SEC (XBRL)· 02 Apr 2026verified |
| Accounts payable | 24.3 m | 33.2 m | 24.6 m | 28.8 m | 51.8 m | 43.7 m | SEC (XBRL)· 02 Apr 2026verified |
| Short-term debt | 14.0 m | — | — | — | — | — | SEC (XBRL)· 14 Apr 2021verified |
| Long-term debt | 78.0 m | — | — | — | — | — | SEC (XBRL)· 14 Apr 2021verified |
| Current liabilities | 56.3 m | 114.7 m | 82.0 m | 106.4 m | 155.1 m | 147.1 m | SEC (XBRL)· 02 Apr 2026verified |
| Total liabilities | 63.1 m | 211.3 m | 215.5 m | 264.7 m | 315.9 m | 316.0 m | SEC (XBRL)· 02 Apr 2026verified |
| Equity | 107.9 m | 157.8 m | 193.1 m | 217.5 m † | 216.4 m † | 218.7 m † | SEC (XBRL)· 02 Apr 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 40.5 m | 32.6 m | -21.4 m | 76.4 m | 39.0 m | 49.3 m | SEC (XBRL)· 02 Apr 2026verified |
| Capex | 8.4 m | 14.6 m | 25.2 m | 28.7 m | 21.0 m | 23.1 m | SEC (XBRL)· 02 Apr 2026verified |
| Free cash flow | 32.1 m ≈ | 18.0 m ≈ | -46.6 m ≈ | 47.7 m ≈ | 18.0 m ≈ | 26.2 m ≈ | SEC (XBRL)· 02 Apr 2026derived |
| Investing cash flow | -9.1 m | -15.1 m | -25.5 m | -29.2 m | -21.5 m | -24.0 m | SEC (XBRL)· 02 Apr 2026verified |
| Financing cash flow | -1.7 m | -3.5 m | -1.9 m | -3.7 m | -20.8 m | -7.2 m | SEC (XBRL)· 02 Apr 2026verified |
| Share repurchases | — | — | 0 | 0 | 19.9 m | 6.0 m | SEC (XBRL)· 02 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
02 Nov 2026Source: olivLaw, closing series
Market cap: 241.9 m USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.68 – 31.14 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E13.68 – 31.14 (Mid 19.37)7 companies used · median multiple 16.0x · quartiles 11.3x – 25.7xARHS, BBY, GME, HTLM, IZM, RH, WSM
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 2.6% | 22 (vs peers) | 11% |
| FCF conversion · Quality | 253.2% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 2.3% | 19 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | -44.7% | 0 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.5x | 56 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 13.8x | 71 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 18.7% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 3.0% | 43 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial56/100 · 1/3 factors with a value
- Growth10/100 · 2/2 factors with a value
- Quality61/100 · 2/3 factors with a value
- Returns· partial43/100 · 1/2 factors with a value
- Valuation84/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
THE LOVESAC COMPANY (LOVE). Latest full fiscal year: 2026; data up to 2026-08-02.
Figures computed from the financial statements: revenue 697.1 m USD in 2026; YoY growth 2.4%; net margin 2.6%; ROE 8.8%.
The estimated value range is 13.68–31.14 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 19.37 USD, the price of 16.77 USD leaves a potential of 15.5% (value / price − 1) and a margin of safety of 13.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 253.2%
- P/E (TTM): 13.8x
- FCF yield: 18.7%
What contradicts it
- Net margin: 2.6%
- Revenue CAGR 3Y: 2.3%
- EPS CAGR 3Y: -44.7%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Home furniture and electronics stores (SIC 57xx) · same major group (2-digit SIC) · compared with 9 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| WSMWilliams-Sonoma, Inc. | 30.6 bn | 26.6 | 55.0% | 14.7% | +1.2% | +44% / +177% |
| BBYBest Buy Co., Inc. | 20.2 bn | 16.0 | 43.1% | 3.0% | +0.4% | +21% / +36% |
| GMEGameStop Corp. | 12.2 bn | 16.0 | 15.8% | 25.2% | −5.1% | +7% / +66% |
| RHRh | 2.8 bn | 26.1 | 280.7% | 3.2% | +8.1% | −7% / −46% |
| ARHSArhaus, Inc. | 1.7 bn | 25.3 | 17.3% | 4.9% | +8.5% | +21% / +35% |
| LOVEThe Lovesac Company | 241.9 m | 13.8 | 8.8% | 2.6% | +2.4% | +21% / −4% |
| HTLMHomesToLife Ltd | 102.2 m | 6.3 | 85.9% | 4.4% | +12.8% | −61% / unavailable |
| AMCIAmc Robotics Corporation | 51.4 m | — | -392.8% | -506.4% | −41.4% | −74% / −79% |
| IZMIczoom Group Inc. | 7.3 m | 6.6 | 7.8% | 0.6% | +5.1% | −33% / −94% |
| HVTHaverty Furniture Companies, Inc | — | — | 7.6% | 2.9% | +5.0% | +28% / −3% |
1- and 3-year price returns: for LOVE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 9.91 Total return -41% · Per year -41% | 17.54 Total return 5% · Per year 5% | 26.45 Total return 58% · Per year 58% |
| 3 years | 9.20 Total return -45% · Per year -18% | 18.36 Total return 9% · Per year 3% | 30.45 Total return 82% · Per year 22% |
| 5 years | 8.54 Total return -49% · Per year -13% | 19.21 Total return 15% · Per year 3% | 35.05 Total return 109% · Per year 16% |
- Exit P/E± 4.59
- Net margin± 3.21
- Annual revenue growth± 2.69
- Annual dilution± 0.27
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Lovesac designs and sells premium modular furniture, mainly Sactionals couches, through its own showrooms and online channel. In the second quarter of fiscal 2027 the company reported a record second-quarter revenue, but profitability was largely supported by tariff refunds amid volatile demand.
SWOT
Strengths
- The modular Sactionals product dominates sales and is protected by a broad patent portfolio. The company says its express courier delivery network is specific to its category 1.
- The company carries no debt and holds a strong cash position, giving it flexibility through a volatile demand period 3.
- The omni-channel model with compact showrooms and an integrated online channel differs from most furniture competitors 1.
Weaknesses
Opportunities
- If the product launches planned for the second half of the year translate into sales, the company could strengthen its premium position 3.
- Domestic Sactionals production could reduce tariff risk and improve delivery times if the investment is executed efficiently 12.
- Expanding the showroom network in strategic locations could drive growth, although management has signaled caution on this 13.
Threats
- Economic slowdown, inflation and higher credit costs could reduce consumers' discretionary spending 1.
- New tariff measures, or changes to existing ones, could abruptly alter purchase costs and margins 12.
- Competition in furniture and price pressure from large retailers could affect volumes and the promotions needed to sell 1.
Risks
- Discretionary demand under pressurehigh
An economic slowdown and lower disposable income could reduce sales of premium products, and the company has already noted a slowdown in demand 12.
- Reliance on tariffs and foreign suppliershigh
Production is outsourced across several countries, and changes in tariffs can directly affect costs and margins 12.
- Non-recurring gains from refundsmedium
IEEPA refunds lifted quarterly profit but are not a stable source of income, and the timing of the third refund phase has been delayed 23.
- Customer acquisition and marketing costsmedium
The company spends heavily to attract new customers, and these costs do not guarantee revenue growth or profitability 1.
- Execution risk on domestic productionlow
The investment in domestic manufacturing and new launches requires careful execution, and expected benefits may be delayed or may not materialize 13.
Investment thesis
What would need to be true (bull case)
- The company reported a record quarter and has a debt-free balance sheet, giving it room to invest 3.
- The premium segment and customers adding modules to existing setups could support average order value over the longer term 3.
- A pipeline of new products and production closer to demand could strengthen the competitive position if executed well 13.
What would break the thesis
- Profitability in the record quarter was largely supported by non-recurring tariff refunds rather than operating improvement 23.
- Online sales and comparable volumes declined, suggesting underlying demand remains fragile 3.
- Guidance for the rest of the year is cautious, and the company expects a net loss in the third quarter, which could extend pressure on profit 3.
What to watch
- Receipt and accounting recognition of the phase three IEEPA tariff refundsQ3 2027
- Trend in omni-channel comparable net sales and showroom trafficQ3 2027
- Results of the product launches planned for the second half of fiscal 2027Q4 2027
- Delivery against full-year guidance of 690 to 710 million USD net sales and 14.5 to 18.5 million USD net incomefiscal 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Lovesac is a technology-driven company that designs, has manufactured by third parties and sells premium furniture under its Designed for Life approach, with products built to last and designed to evolve with customers' lives. The range includes Sactionals modular couches, Sacs beanbag chairs, the StealthTech sound system, PillowSac chairs and the Snugg seating line launched in May 2025. The company owns no manufacturing facilities; production is carried out in Vietnam, Malaysia, China, Indonesia, Taiwan, India and the United States 1. As of August 2, 2026 the company had 284 showrooms 3.
The omni-channel model combines compact showrooms in malls and lifestyle centers with online sales and formats such as pop-up shops and the Loved by Lovesac resale program. Showrooms accounted for 67.1% of net sales in fiscal 2026 1. The company says delivery of large upholstered items through express couriers is a distinctive advantage in the furniture industry 1.
Sales are seasonal, with a larger share in the fourth quarter tied to Black Friday and the holiday season 1. In fiscal 2026 the company reported net income of 4,065 thousand USD, in a period of slowing demand and tariff pressure 1.
Segments
Market context
Lovesac operates in the premium couch segment of furniture, competing with furniture stores, big box retailers, department stores, specialty retailers and online furniture platforms 1. Its target customers are aged 25 to 54 with household incomes above 75,000 USD per year 1.
Furniture demand is sensitive to inflation, high interest rates and housing conditions, which the company cites as causes of the slowdown in demand over the last fiscal year 12. If these conditions persist, discretionary spending on its products could remain under pressure.
Trends
- Tariff refunds under IEEPAmixed
After the Supreme Court ruling in February 2026, the company received IEEPA tariff refunds that boosted profit in the second quarter of fiscal 2027 23. This income is non-recurring, and some further refunds have not yet been recognized 2.
- Slowing consumer demandheadwind
The company links weaker demand to inflation, higher interest rates and reduced discretionary spending, and online sales declined in the second quarter 13. This is a direct pressure on volumes.
- Customers configuring larger setupstailwind
Management says the high end of the business remains a source of strength as customers add modules, reclining seats and value enhancers 3. If this continues, it could support the average order value.
- Domestic production and tariffsmixed
The company intends to invest in domestic manufacturing of Sactionals to reduce tariff and supply chain risk, but the investment requires upfront costs 12. The long-term effect depends on execution.
Competitive position
Lovesac faces competition from furniture stores, big box retailers, department stores, specialty retailers and online furniture retailers and marketplaces 1. Competition is based on design, quality, price and customer service, and competitors' ability to attract customers with pricing may affect the company's results 1.
The company says its advantage lies in patents covering Sactionals modularity, its omni-channel ecosystem and its express courier delivery, which it considers unique in the category 1. The sources analyzed do not name specific competitors, so direct identification remains limited.
- Traditional furniture stores
Physical furniture retailers targeting the same premium customers that Lovesac tries to attract through compact showrooms.
- Big box retailers
Large chains selling furniture at volume that can compete on price.
- Department and general merchandise stores
Broad-range sellers of furniture present in the same shopping areas.
- Online furniture platforms
Online stores and marketplaces competing directly with the company's ecommerce channel.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Lovesac Company (LOVE): Three Analysts Still Say Buy. All Three Just Cut Their TargetsYahoo Finance — News · 17 Sept 2026 · EN
- Lovesac (LOVE) Target Cut by Canaccord, Analysts See 40% UpsideYahoo Finance — News · 15 Sept 2026 · EN
- Lovesac’s (LOVE) Premium Sofas Shine While Entry-Level Buyers Stay AwayYahoo Finance — News · 13 Sept 2026 · EN
- Lovesac (LOVE) Q2 2027 Earnings Call TranscriptYahoo Finance — News · 11 Sept 2026 · EN
- The Lovesac Company Q2 2027 Earnings Call SummaryYahoo Finance — News · 10 Sept 2026 · EN
SEC filings
- Quarterly report10 Sept 2026
- Current report10 Sept 2026Results of operations · Financial statements and exhibits
- Current report15 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report11 Jun 2026
- Current report11 Jun 2026Results of operations · Financial statements and exhibits
- Current report09 Jun 2026Shareholder vote · Financial statements and exhibits
- Proxy statement23 Apr 2026
- Annual report02 Apr 2026
- Current report26 Mar 2026Regulation FD disclosure · Financial statements and exhibits
- Current report26 Mar 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-02-01 · SEC / The Lovesac Company · 02 Apr 2026
- [2] Form 10-Q, quarter ended 2026-08-02 · SEC / The Lovesac Company · 10 Sept 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / The Lovesac Company · 10 Sept 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.