XVARY Composite Score
23
/ 100
Weak
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
It sells modular couches, beanbag chairs, and add-ons through 230 showrooms in 40 states and online.
How it gets paid
Last year Lovesac made $681M in revenue. Sactionals was the main engine at $410M, or 60% of sales.
Why growth slowed
Revenue fell 2.8% last year. 55.5% gross margin matters because every 100 bps move is about $6.8M on $681M of annual revenue.
What just happened
Lovesac missed with $449M of revenue and a $1.91 loss per share.
At a Glance
C+ balance sheet — struggling to keep the lights on
25/100 earnings predictability — expect surprises
17.7x trailing p/e — the market's not buying it — or you found a deal
5.3% return on capital — nothing to write home about
$0.69 fy2024 eps est
XVARY composite: 23/100 — weak
What They Do
It sells modular couches, beanbag chairs, and add-ons through 230 showrooms in 40 states and online.
Sactionals can be rearranged into thousands of configurations. That turns one purchase into a parts business. With 230 showrooms in 40 states, your couch gets sold like a lifestyle decision, not a commodity.
How They Make Money
$681M
annual revenue · their business grew -2.8% last year
Sactionals
$410M
+4.0%
Accessories
$131M
+1.0%
Sacs
$90M
8.0%
Other direct-to-consumer
$50M
0.0%
The Products That Matter
Modular couch system
Sactionals
about $550M · about 80% of revenue
this is the story. about $550M of a $691M business comes from one modular seating line, and sales still grew 0.2% even in a weak quarter.
core demand
Integrated audio add-on
StealthTech
no separate revenue disclosed
the company does not break this out in the snapshot data. that tells you it is an attachment sale, not a thesis by itself, inside a business that made just $7.3M on $691M of sales.
upsell, not thesis
Premium foam beanbag chairs
Sacs
about $140M · about 20% of revenue
this legacy line is still meaningful at about $140M, but it is now the supporting act. your outcome lives with the couch business, not the beanbag chairs.
legacy line
Key Numbers
$681M
annual sales
That is the top line. It is 4.4 times the market cap, which means the stock is cheap only if profits show up.
55.5%
gross profit share
This leaves room for profit if selling costs stop eating the cushion.
4.2%
profit after costs
That is the thin slice left after the furniture is built and sold.
$169M
debt load
Debt equals 52% of capital, so leverage is doing the heavy lifting.
Financial Health
C+
Strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $169M (52% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
missed estimates
Lovesac missed with $449M of revenue and a $1.91 loss per share.
Revenue reached $449M, and gross margin was 55.5%. EPS was -$1.91, so profit still lagged the top line.
$449M
revenue
-$1.91
eps
55.5%
gross margin
the number that mattered
55.5% gross margin matters because every 100 bps move is about $6.8M on $681M of annual revenue.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is tariff and freight-driven gross margin compression. last quarter already showed the damage: gross margin fell 240 basis points to 56.1%.
High
Cost inflation does not need to be dramatic to hurt this story
a 240 basis point margin drop was enough to turn a premium furniture pitch into a weak quarter. when you only keep 1.1% of annual sales as profit, small hits stop being small.
impact: if gross margin stays near 56% instead of recovering, the earnings multiple has no defense.
High
Flat sales leave no room to hide
quarterly sales rose just 0.2%. that is not enough growth to outrun higher freight, tariffs, or store costs. you need operating leverage. this quarter did not show it.
impact: if revenue stays around flat after a $150.2M quarter, cost control becomes the whole thesis.
Med
$169M of long-term debt limits your patience
the company carries $169M of long-term debt, or 52% of capital, with a C+ balance sheet grade. that does not mean crisis. it means bad quarters compound faster.
impact: weak profit plus debt turns a slowdown into a financing story sooner than investors want.
Med
One product family carries about 80% of the business
Sactionals account for about $550M of the $691M revenue base. that focus helps the brand. it also means a slowdown in the modular couch line hits nearly everything at once.
impact: the company does not have many other segments to offset a miss in its core product.
the combined picture is simple: a 240 basis point margin hit, a 1.1% net margin, and $169M of debt leave little buffer. if costs stay high through another weak demand quarter, the stock stays a repair story.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Calendar
March 25, 2026 earnings report
this is the next hard checkpoint. after a $10.6M quarterly loss, you need to see whether margin damage was temporary or the new baseline.
Metric
Gross margin back above 58.5%
last quarter printed 56.1% after a 240 basis point drop. a move back above 58.5% would recover the lost ground from a year earlier.
Trend
Sales growth better than 0.2%
flat sales can work for a mature retailer with solid margins. lovesac does not have that luxury right now. you need demand to do more than tread water.
Risk
Full-year EBITDA target of $51M–$56M
management still points to this range. if that target starts moving down, the market will read it as proof that tariffs and freight were not a one-quarter problem.
Analyst Rankings
earnings predictability
25 / 100
in human-speak, analysts do not trust this earnings pattern to stay smooth. expect larger swings than you would get from a steady retailer.
xvary composite
23 / 100
that score rolls growth, value, risk, and momentum together. in plain english: too many parts of the story are weak at the same time.
Source: institutional data
Institutional Activity
institutional ownership data for LOVE is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$13
Current price
Target midpoint · from current
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