LOVE - Is Lovesac Stock a Buy?
Some models are holding up better than expected in the current environment, and one of the more resilient players in the home furnishings retail space is Lovesac (NASDAQ: LOVE). The maker of stylish beanbag chairs and modular couch furniture closed its 91 showrooms in mid-March like most brick-and-mortar chains, but then something amazing happened.
In the four weeks following the March 17 closure of its stores, Lovesac saw its online sales soar more than 400%. The fivefold pop in e-commerce was enough to lift total sales 4% in that four-week period, a step down from its previous heady growth clip but a spectacular recovery for what has been the darkest hour for many of its peers.
Lovesac is making the best of the hand that it's been dealt, but is that enough to make it a recommended stock for your portfolio? Let's kick the tires -- uh, the beanbags -- and find out.