The Lovesac Company faces persistent demand weakness, repeated guidance cuts, and a 50% YTD share price decline, reinforcing my sell rating. LOVE's margins are eroding amid flat sales, heavy promotional activity, tariff pressures, and rising SG&A from showroom expansion. Despite trading at ~4x FY25 adjusted EBITDA, LOVE is a value trap due to unreliable growth, negative YTD EBITDA, and thin cash reserves.
The Lovesac Company (LOVE) Q3 2026 Earnings Call Transcript
Although the revenue and EPS for Lovesac (LOVE) give a sense of how its business performed in the quarter ended October 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
| Household Durables Industry | Consumer Discretionary Sector | Shawn David Nelson CEO | NASDAQ (NMS) Exchange | 54738L109 CUSIP |
| US Country | 920 Employees | - Last Dividend | - Last Split | 26 Jun 2018 IPO Date |
The Lovesac Company, founded in 1995 and based in Stamford, Connecticut, specializes in designing, manufacturing, and selling innovative furniture. The company distinguishes itself by offering a unique range of customizable furniture that includes sactionals, sacs, and various accessories designed to enhance the user experience. The Lovesac Company has successfully extended its market reach by utilizing a multi-channel retail strategy. This involves the sale of products through its website www.lovesac.com, alongside a physical presence in top tier malls, lifestyle centers, and through innovative retail formats such as mobile concierges, kiosks, and pop-up shops. Furthermore, the company engages in strategic shop-in-shop partnerships and barter inventory transactions, broadening its customer base across 41 states in the United States.
LoveSac offers highly versatile sactionals, which are modular sections that include seats and sides. These customizable furniture pieces allow for easy configuration to fit any room size or shape. Customers can also choose from a variety of covers to match their decor, making sactionals a popular choice for adaptable and stylish home furnishings.
The company's signature product, the sacs, are oversized foam beanbag chairs that provide an unparalleled level of comfort and support. These innovative chairs are a modern take on the classic beanbag and are designed to offer a more luxurious, enveloping seating experience.
Lovesac's range of accessories is designed to complement its primary furniture offerings. This includes practical items like drink holders, which add convenience to the sactionals or sacs, and footsac blankets, designed to provide warmth and comfort. Additionally, the line features decorative pillows to enhance the aesthetic appeal of the furniture, fitted seat tables for added functionality, and ottomans that serve as versatile seating or footrest solutions.