Revenue growth remains inconsistent, fluctuating between a 6.1% decline and a 4.9% increase over the last ten quarters, while gross margins have compressed significantly to 52.1% as of 2027Q1.
| Sales/Revenue | 696.94M | 697.12M | 680.63M | 700.26M | 651.18M | 498.24M | 320.74M | 233.38M | 165.88M | 101.81M | 76.34M | 74.15M |
| Revenue Growth % | 1.54% | 2.42% | -2.8% | 7.54% | 30.7% | 55.34% | 37.43% | 40.69% | 62.93% | 33.36% | 2.96% | - |
| Cost of Goods Sold | 306.12M | 319.11M | 282.79M | 299.22M | 307.53M | 224.71M | 145.97M | 116.69M | 75M | 44.59M | 34.65M | 33.64M |
| COGS % of Revenue | - | 45.78% | 41.55% | 42.73% | 47.23% | 45.1% | 45.51% | 50% | 45.21% | 43.8% | 45.38% | 45.36% |
| Gross Profit | 390.82M | 378.01M | 397.83M | 401.04M | 343.65M | 273.53M | 174.77M | 116.69M | 90.88M | 57.22M | 41.7M | 40.51M |
| Gross Margin % | 56.08% | 54.22% | 58.45% | 57.27% | 52.77% | 54.9% | 54.49% | 50% | 54.79% | 56.2% | 54.62% | 54.64% |
| Gross Profit Growth % | - | -4.98% | -0.8% | 16.7% | 25.63% | 56.51% | 49.77% | 28.4% | 58.83% | 37.22% | 2.93% | - |
| Operating Expenses | 387.88M | 372.65M | 384.19M | 370.97M | 306.69M | 232.95M | 159.89M | 132.5M | 97.92M | 62.25M | 47.87M | 47.17M |
| OpEx % of Revenue | - | 53.46% | 56.45% | 52.98% | 47.1% | 46.76% | 49.85% | 56.77% | 59.03% | 61.15% | 62.7% | 63.62% |
| Selling, General & Admin | 372.1M | 372.65M | 369.48M | 358.36M | 295.84M | 225.09M | 153.28M | 127.34M | 94.79M | 60.04M | 47.87M | 47.17M |
| SG&A % of Revenue | - | 53.46% | 54.28% | 51.18% | 45.43% | 45.18% | 47.79% | 54.56% | 57.14% | 58.97% | 62.7% | 63.62% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 0 | 14.71M | 12.6M | 10.84M | 7.86M | 6.61M | 5.16M | 3.13M | 2.21M | 0 | 0 |
| Operating Income | 2.94M | 5.36M | 13.65M | 30.08M | 36.97M | 40.58M | 14.88M | -15.81M | -7.04M | -5.04M | -6.17M | -6.66M |
| Operating Margin % | 0.42% | 0.77% | 2.01% | 4.29% | 5.68% | 8.14% | 4.64% | -6.77% | -4.25% | -4.95% | -8.08% | -8.99% |
| Operating Income Growth % | - | -60.7% | -54.62% | -18.64% | -8.9% | 172.7% | 194.12% | -124.45% | -39.81% | 18.36% | 7.4% | - |
| EBITDA | 18.72M | 20.57M | 28.36M | 42.68M | 47.81M | 48.44M | 21.49M | -10.65M | -3.91M | -2.82M | -4.06M | -4.28M |
| EBITDA Margin % | 2.69% | 2.95% | 4.17% | 6.09% | 7.34% | 9.72% | 6.7% | -4.56% | -2.36% | -2.77% | -5.32% | -5.77% |
| EBITDA Growth % | -40.34% | -27.47% | -33.56% | -10.73% | -1.3% | 125.36% | 301.79% | -172.43% | -38.47% | 30.47% | 5.15% | - |
| D&A (Non-Cash Add-back) | 15.77M | 15.21M | 14.71M | 12.6M | 10.84M | 7.86M | 6.61M | 5.16M | 3.13M | 2.21M | 2.11M | 2.38M |
| EBIT | 4.59M | 5.36M | 16.45M | 31.82M | 36.97M | 40.58M | 14.88M | -15.81M | -7.04M | -5.04M | -6.17M | -7.31M |
| Net Interest Income | 1.64M | 0 | 2.8M | 1.75M | -117K | -179K | -67.38K | 646.84K | 355.36K | -437.96K | -565.56K | -1.69M |
| Interest Income | 1.64M | 0 | 2.8M | 1.75M | 0 | 0 | 0 | 646.84K | 355.36K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 117K | 179K | 67.38K | 0 | 0 | 437.96K | 565.56K | 1.69M |
| Other Income/Expense | 1.64M | 1.3M | 2.8M | 1.75M | -117K | -179K | -67K | 647K | 355.36K | -437.96K | -565.56K | -2.33M |
| Pretax Income | 4.59M | 6.67M | 16.45M | 31.82M | 36.85M | 40.4M | 14.81M | -15.16M | -6.69M | -5.48M | -6.74M | -8.99M |
| Pretax Margin % | 0.66% | 0.96% | 2.42% | 4.54% | 5.66% | 8.11% | 4.62% | -6.5% | -4.03% | -5.38% | -8.82% | -12.13% |
| Income Tax | 774K | 2.6M | 4.89M | 7.96M | 10.36M | -7.09M | 86K | 43K | 16.41K | 26K | 138K | 0 |
| Effective Tax Rate % | 16.88% | 39.01% | 29.75% | 25.02% | 28.12% | -17.55% | 0.58% | -0.28% | -0.25% | -0.47% | -2.05% | 0% |
| Net Income | 3.81M | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M | 14.73M | -15.21M | -6.7M | -5.5M | -6.87M | -8.99M |
| Net Margin % | 0.55% | 0.58% | 1.7% | 3.41% | 4.07% | 9.53% | 4.59% | -6.52% | -4.04% | -5.4% | -9% | -12.13% |
| Net Income Growth % | -72.13% | -64.82% | -51.57% | -9.92% | -44.22% | 222.46% | 196.86% | -126.79% | -21.86% | 19.97% | 23.57% | - |
| Net Income (Continuing) | 3.81M | 4.07M | 11.56M | 23.86M | 26.49M | 47.49M | 14.73M | -15.21M | -6.7M | -5.5M | -6.87M | -8.99M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.26 | 0.28 | 0.69 | 1.45 | 1.66 | 2.86 | 0.96 | -1.07 | -3.28 | -0.52 | -0.53 | -0.67 |
| EPS Growth % | -62.86% | -59.42% | -52.41% | -12.65% | -41.96% | 197.92% | 189.72% | 67.38% | -530.77% | 1.89% | 20.73% | - |
| EPS (Basic) | - | 0.28 | 0.75 | 1.55 | 1.74 | 3.04 | 1.01 | -1.07 | -3.28 | -0.52 | -0.53 | -0.67 |
| Diluted Shares Outstanding | 14.67M | 14.7M | 16.79M | 16.46M | 15.96M | 16.06M | 15.33M | 14.26M | 10.54M | 12.93M | 12.93M | 13.45M |
| Basic Shares Outstanding | 14.67M | 14.68M | 15.5M | 15.43M | 15.2M | 15.11M | 14.61M | 14.26M | 10.54M | 12.93M | 12.93M | 13.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Acquisition Costs
According to recent financial filings, The Lovesac Company has experienced inconsistent top-line performance, with revenue growth fluctuating between a 6.1% decline and a 4.9% increase over the last ten quarters, highlighting a heavy reliance on seasonal fourth-quarter spikes to drive annual volume targets.
The revenue profile suggests a business model that struggles to maintain consistent momentum outside of peak holiday periods. This pattern implies that the company's modular product ecosystem may not be generating the expected level of recurring, non-seasonal demand required to smooth out quarterly performance.
As reported in quarterly statements, gross margins have demonstrated significant variability, peaking at 60.4% in 2025Q4 before contracting to 52.1% in 2027Q1, which indicates that the company's premium pricing power is increasingly vulnerable to fluctuations in inbound freight and raw material input costs.
While the gross margin remains relatively high compared to traditional furniture peers, the downward trend suggests that the company is struggling to pass through rising logistics and commodity costs to the consumer. Investors should monitor whether this compression is a temporary cyclical headwind or a structural shift in the competitive landscape.
Based on the provided income statement data, operating income remains highly sensitive to revenue volume, with SG&A expenses consistently hovering near $85M to $97M, effectively neutralizing gross profit gains during non-peak quarters and preventing the realization of meaningful operating leverage at current scale.
The data indicates that the company's cost structure is heavily weighted toward fixed showroom and marketing expenses that do not scale efficiently with revenue. This suggests that the current business model requires significantly higher top-line volume to achieve sustainable operating profitability, leaving the firm exposed during periods of soft demand.
Analysis of recent SEC filings reveals that the company's reliance on aggressive marketing spend to drive growth has resulted in persistent net losses in seven of the last ten quarters, raising concerns about the long-term viability of its current customer acquisition strategy.
Short-sellers may focus on the fact that the company's operating margin has turned negative in most quarters, suggesting that the cost to acquire a new customer may be approaching or exceeding the lifetime value of that customer. This warrants further investigation into whether the brand's modularity is truly creating a sticky ecosystem or if it is merely masking high churn through constant promotional activity.
Quick answers to the most common questions about buying LOVE stock.
For fiscal year 2026, The Lovesac Company (LOVE) reported total revenue of $697.1M. This represents a 840.2% increase compared to $74.1M in 2016.
The Lovesac Company (LOVE) is profitable, generating $4.1M in net income for the fiscal year ending 2026 with a net profit margin of 0.6%.
The Lovesac Company (LOVE) reported an operating income of $5.4M, resulting in an operating profit margin of 0.8%. This margin reflects the operational efficiency of the business before interest and taxes.
The Lovesac Company (LOVE) generated $378.0M in gross profit for the year, representing a gross profit margin of 54.2%. This demonstrates the company's core pricing power and production efficiency.