The Lovesac Company Common Stock (LOVE)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett and Graham style investor, I start with durable economics. Lovesac sells furniture, and the filed numbers do not yet show a franchise. In fiscal year 2024, the year ended 2024-02-04, revenue was $700.3M and net income was $23.9M. In fiscal year 2025, the year ended 2025-02-02, revenue was $680.6M and net income was $11.6M. In fiscal year 2026, the year ended 2026-02-01, revenue was $697.1M and net income was only $4.1M. That is profit erosion, not growth. The provider labels it SLOW GROWER — Shrinking, with profit down 22.7% a year over five years. FairStock calculates ROCE at 0.14% and ROE at 8.78%, so capital is not earning much. In fiscal Q2 2027, the quarter ended 2026-08-02, results improved: revenue $161.2M, net income $7.4M, diluted EPS $0.51, versus a net loss of $6.7M in fiscal Q2 2026, the quarter ended 2025-08-03. Still, quarterly results have swung hard. D/E is 0.91 and Altman Z-Score is 0.95, which warns of financial stress. On the positive side, trailing free cash flow is $44.1M, a 21.0% FCF yield, and Piotroski is 8/9. At the $14.58 close on 2026-10-13, FairStock calculates P/E 11.95, P/B 1.04, EV/EBITDA 8.56, Graham Number $19.99, and a 27.06% margin of safety. The price may already discount trouble, but I would want proof that profit decline has truly reversed before treating it as a value bargain.

In plain English: Lovesac designs and sells furniture such as sectionals and large beanbag chairs. The business has been weak on profits over recent years, though it earned money in its latest reported quarter. The shares look inexpensive compared with the company's sales and cash flow, but uneven results and debt mean the low price may reflect real risks.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-02) · fiscal Q1 2027 10-Q (period ended 2026-05-03) · fiscal Q3 2026 10-Q (period ended 2025-11-02) · fiscal Q2 2026 10-Q (period ended 2025-08-03) · FY2026 10-K (period ended 2026-02-01) · FY2025 10-K (period ended 2025-02-02) · FY2024 10-K (period ended 2024-02-04)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer