Lovesac Co. (The) (LOVE)
NASDAQConsumer DiscretionaryFurnishings, Fixtures & AppliancesSnapshot 2026-09-09
$16.03-0.25%
Close 2026-09-09 · 1-day change
NASDAQConsumer DiscretionaryFurnishings, Fixtures & AppliancesSnapshot 2026-09-09
Warn: Primary pillar under pressure — Achieve revenue of $700M to $740M in fiscal 2027: FY27 guidance mid $720M vs $700M-$740M target.
Lovesac plans $700M to $740M revenue in fiscal 2027. They expect $5M to $14M net income. New U.S. manufacturing may cut costs. The CFO change is a positive sign.
Revenue and net income fell sharply in the latest quarter. Cash flow is negative and worsening. The company missed recent earnings targets. Growth goals seem far off.
The price is about 4% above our fair value near $18. Analysts expect 8% revenue growth. Our fair value is 20% below Street median targets.
Breaks if: Cash flow from operations remains negative in fiscal 2027
Focus on improving cash flow from operations to support business growth.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a medium confidence level. The current thesis state indicates that while there are some positive recent events, the overall financial performance is weak and the company is behind on its growth targets.
The market seems to have priced in a justified valuation, with a low expectations gap. However, LOVE trades at a premium compared to its peers, suggesting that investors may expect some recovery or improvement.
Management has set ambitious targets for revenue and net income, but recent results show limited progress. The trajectory for cash from operations is also negative, indicating ongoing challenges.
The long-term thesis hinges on whether management can achieve its growth targets and improve financial performance. Additionally, external factors like inflation and sector performance will play a crucial role in shaping the company's future.
The most important moves since the prior daily snapshot.
Signal changed from 'mixed' to 'mild_favorable'.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 2 of last 2 quarters. Cash from operations was -$35.4M in 2027-Q1, down from $83.4M in 2026-Q4, indicating a significant decline. The company aims to enhance cash flow to support growth, but current results show a negative trajectory.
“Cash from operations was -$35.4M.”
“Cash from operations was $83.4M.”
Breaks if: Net income falls below $5M in fiscal 2027
Aim to enhance net income, targeting a range of $5 million to $14 million for fiscal 2027.
Stated in 3 of last 3 quarters. Net income was -$11.1M in 2027-Q1, down from $32.1M in 2026-Q4, showing a significant decline. The company aims for a fiscal 2027 net income of $5M to $14M, but current results indicate limited progress.
“Net income in the range of $5 million to $14 million.”
“Net income in the range of $2 million to $8 million.”
“Net income in the range of $2 million to $8 million.”
Breaks if: Revenue falls below $700M in fiscal 2027
Focus on increasing net sales to reach the fiscal 2027 target of $700 million to $740 million.
Stated in 4 of last 4 quarters. Revenue was $138.2M in 2027-Q1, down from $248.0M in 2026-Q4, indicating a decline. The company has set a fiscal 2027 revenue target of $700M to $740M, but current trajectory shows limited progress towards this goal.
“The Company expects net sales in the range of $700 million to $740 million.”
“Net sales in the range of $700 million to $750 million.”
“Net sales in the range of $685 million to $705 million.”
“Net sales in the range of $710 million to $740 million.”
In the next 1 to 3 years, LOVE's prospects depend on management's execution and broader economic conditions. Not investment advice.