LOVE

Lovesac Company

Consumer


Presented:05/27/2021
Price:$86.09
Cap:$1.29B
Current Price:$27.99
Cap:$0.44B

Presented

Date05/27/2021
Price$86.09
Market Cap$1.29B
Ent Value$0.82B
P/E Ratio98.29x
Book Value$7.19
Div Yield0%
Shares O/S15.02M
Ave Daily Vol416,066
Short Int13.98%

Current

Price$27.99
Market Cap$0.44B
The Lovesac Co. is a technology driven, omni-channel company. It designs, manufactures, and sells furniture comprised of modular couches called sactionals and foam beanbag chairs called sacs. Its products include sactionals, sacs, and accessories. The company was founded by Shawn David Nelson in 1995 and is headquartered in Stamford, CT.

Publicly traded companies mentioned herein: Best Buy Co Inc (BBY), Casper Sleep Inc (CSPR), Costco Wholesale Corporation (COST), Ethan Allen Interiors Inc (ETH), Lovesac Co (LOVE), Macy’s Inc (M), Purple Innovation Inc (PRPL)

Highlights

The presenter is short shares of Lovesac Co (LOVE) which he views as a clear transitory COVID-19 beneficiary with a mediocre business, questionable long-term economics, and a number of red flags. Among his criticisms are how LOVE promotes itself, the investor structure, the company history, and their claim to be a DTC ecommerce company while growth is primarily coming from mall based showroom openings. Despite a favorable housing tailwind, he assesses a profitable growth runway is questionable at best. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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