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Lovesac (LOVE)

Based in Stamford, Connecticut, The Lovesac Company is a technology driven company that designs, manufactures and sells unique, high quality furniture derived through its proprietary 'Designed for Life' approach which results in products that are built to last a lifetime and designed to evolve as its customers' lives do. Its current product offering is comprised of modular couches called Sactionals, premium foam beanbag chairs called Sacs, and their associated home decor accessories. Innovation is at the center of its design philosophy with all of its core products protected by a robust portfolio of utility patents. The company markets and sells its products primarily online directly at www.lovesac.com, supported by direct-to-consumer touch-feel points in the form of its own showrooms as well as through shop-in-shops and pop-up-shops with third party retailers.

LOVE stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

9 Sep 22
1 Oct 22
31 Jan 23
Quarter (USD) Jul 22 May 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Feb 20 Feb 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 17.65M 17.65M 17.65M 17.65M 17.65M 17.65M
Cash burn (monthly) 15.58M 4.24M (no burn) (no burn) 12.52M 2.18M
Cash used (since last report) 31.53M 8.58M n/a n/a 25.35M 4.4M
Cash remaining -13.88M 9.08M n/a n/a -7.7M 13.25M
Runway (months of cash) -0.9 2.1 n/a n/a -0.6 6.1

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Jul 22 Nelson Shawn David Common Stock, $0.00001 par value Sell Dispose S Yes No 33.8857 8,000 271.09K 64,895
1 Jul 22 Vineet Mehra RSU Common Stock Grant Acquire A No No 0 2,977 0 6,424
1 Jul 22 Vineet Mehra RSU Common Stock Grant Acquire A No No 0 1,567 0 3,447
1 Jul 22 Vineet Mehra RSU Common Stock Grant Acquire A No No 0 1,880 0 1,880
7 Jun 22 Sharon M Leite Common Stock, $0.00001 Grant Acquire A No No 0 393 0 1,638
7 Jun 22 Sharon M Leite RSU Common Stock Option exercise Dispose M No No 0 393 0 393
13F holders Current Prev Q Change
Total holders 129 151 -14.6%
Opened positions 19 24 -20.8%
Closed positions 41 23 +78.3%
Increased positions 51 59 -13.6%
Reduced positions 43 47 -8.5%
13F shares Current Prev Q Change
Total value 462.15M 5.29B -91.3%
Total shares 15.51M 15.49M +0.1%
Total puts 492.3K 407.7K +20.8%
Total calls 303.3K 181.2K +67.4%
Total put/call ratio 1.6 2.3 -27.9%
Largest owners Shares Value Change
Alliancebernstein 1.53M $42.21M +0.7%
FMR 1.14M $31.47M -2.8%
Wasatch Advisors 993.72K $27.33M -2.1%
BLK Blackrock 927.59K $25.51M +9.7%
Granahan Investment Management 909.98K $25.03M +2.2%
FHI Federated Hermes 740K $20.35M +13.8%
Heyer Andrew R 727.04K $36.85M 0.0%
Vanguard 716.75K $19.71M -4.5%
JHG Janus Henderson 655.62K $18.03M +0.3%
FIL 604.76K $16.63M 0.0%
Largest transactions Shares Bought/sold Change
Marshall Wace 514.19K +491.59K +2174.9%
Hood River Capital Management 410.34K -411.13K -50.0%
Millennium Management 296.46K +261.53K +748.7%
Balyasny Asset Management 329.81K +154.48K +88.1%
Lord, Abbett & Co. 0 -138.9K EXIT
Driehaus Capital Management 24.97K -122.27K -83.0%
Voloridge Investment Management 63.95K -94.2K -59.6%
FHI Federated Hermes 740K +90K +13.8%
Dimensional Fund Advisors 127.54K -83.83K -39.7%
BLK Blackrock 927.59K +82.21K +9.7%

Financial report summary

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Risks
  • The impact of COVID-19 continues to create uncertainty for our business and may have a significant negative impact on our business, sales, results of operations and financial condition.
  • If we fail to acquire new customers, or fail to do so in a cost-effective manner, we may not be able to achieve revenue growth or profitability.
  • Our business is highly competitive. Competition presents an ongoing threat to the success of our business.
  • We rely on the performance of members of management and highly skilled personnel. If we are unable to attract, develop, motivate and retain well-qualified associates, our business could be harmed.
  • System interruptions that impair customer access to our sites or other performance failures in our technology infrastructure could damage our business, reputation and brand, and substantially harm our business and results of operations.
  • Unauthorized disclosure of sensitive or confidential information, whether through a breach of our computer system or otherwise, could severely hurt our business.
  • Our business is sensitive to economic conditions and consumer spending.
  • A substantial portion of our business is dependent on a small number of suppliers. A material disruption or labor shortage at any of our suppliers’ manufacturing facilities could impede our ability to meet customer demand, reduce our sales, and/or negatively affect our financial results.
  • Our reliance on international suppliers increases our risk of supply chain disruption, which could materially increase the cost and reduce or delay the supply of our products, which could adversely affect our business, financial condition, operating results and prospects.
  • We are subject to risks associated with our dependence on foreign manufacturing and imports for our products.
  • Our reliance on suppliers in developing countries increases our risk with respect to available manufacturing infrastructure, labor and employee relations, political and economic stability, corruption, and regulatory, environmental, health and safety compliance.
  • Increases in the demand for, or the price of, raw materials used to manufacture our products or other fluctuations in sourcing or distribution costs could increase our costs and negatively impact our gross margin.
  • Our business depends on effective marketing and increased customer traffic.
  • Our increased use of social media poses reputational risks.
  • Our efforts to launch new products may not be successful.
  • Our inability to manage the complexities created by our omni-channel operations may have a material adverse effect on our business, financial condition, operating results and prospects.
  • Our ability to attract customers to our showrooms depends heavily on successfully locating our showrooms in suitable locations. Any impairment of a showroom location, including any decrease in customer traffic, could cause our sales to be lower than expected.
  • We may be unable to successfully open and operate new showrooms, which could have a material adverse effect on our business, financial condition, operating results and prospects.
  • As we expand our showroom base, we may not be able to achieve the showroom sales growth rates that we have achieved in the past, which could cause our share price to decline.
  • We have and will continue to expend capital remodeling our existing showrooms, and there is no guarantee that this will result in incremental showroom traffic or sales.
  • Our lease obligations are substantial and expose us to increased risks.
  • We are required to make substantial lease payments under our leases, and any failure to make these lease payments when due would likely harm our business. In addition, many of our leases contain relocation clauses that allow the landlord to move the location of our showrooms. As our leases expire, we may be unable to negotiate acceptable renewals.
  • Our inability to successfully optimize our omni-channel operations and maintain a relevant and reliable omni-channel experience for our customers could have a material adverse effect on our growth strategy and our business, financial condition, operating results and prospects.
  • Purchasers of furniture may choose not to shop online, which could affect the growth of our business.
  • We depend on our ecommerce business and failure to successfully manage this business and deliver a seamless omni-channel shopping experience to our customers could have an adverse effect on our growth strategy, business, financial condition, operating results and prospects.
  • Significant merchandise returns could harm our business.
  • We are subject to risks related to online payment methods.
  • If our internal control over financial reporting or our disclosure controls and procedures are not effective, we may not be able to accurately report our financial results, prevent fraud or file our periodic reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price.
  • We may be unable to accurately forecast our operating results and growth rate, which may adversely affect our reported results and stock price.
  • If we fail to manage our growth effectively, our business, financial condition, operating results and prospects could be harmed.
  • Changes in lease accounting standards may materially and adversely affect us.
  • We may be subject to product liability claims if people or property are harmed by the products we sell.
  • Product warranty claims could have a material adverse effect on our business.
  • Government regulation of the Internet and ecommerce is evolving, and unfavorable changes or failure by us to comply with these regulations could substantially harm our business and results of operations.
  • We may be unable to protect our trademarks or brand image, which could harm our business.
  • We may not be able to adequately protect our intellectual property rights.
  • Our products or marketing activities may be found to infringe or violate the intellectual property rights of others.
  • The trading price of the shares of our common stock has been and is likely to continue to be highly volatile.
  • We may be subject to securities litigation, which is expensive and could divert management attention.
  • If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.
  • Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our Company more difficult, and limit attempts by our stockholders to replace or remove our current management.
  • We do not expect to declare any dividends in the foreseeable future.
Management Discussion
  • Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  • We operate on a 52- or 53-week fiscal year that ends on the Sunday closest to February 1. Each fiscal year generally is comprised of four 13-week fiscal quarters, although in the years with 53 weeks, the fourth quarter represents a 14-week period.
  • We are a technology driven company that designs, manufactures and sells unique, high quality furniture derived through our proprietary “Designed for Life” approach which results in products that are built to last a lifetime and designed to evolve as our customers’ lives do. Our current product offering is comprised of modular couches called Sactionals, premium foam beanbag chairs called Sacs, and their associated home decor accessories. Innovation is at the center of our design philosophy with all of our core products protected by a robust portfolio of utility patents. We market and sell our products online directly at www.lovesac.com, supported by direct-to-consumer touch-feel points in the form of our own showrooms, which include our newly created mobile concierge and kiosks, as well as through shop-in-shops and online pop-up-shops with third party retailers. We believe that our ecommerce centric approach, coupled with our ability to deliver our large, upholstered products through express couriers, is unique to the furniture industry.

Content analysis

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H.S. junior Avg
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