LOVE - Lovesac called a long-term margins winner by BTIG

BTIG thinks Lovesac Company's (LOVE) FQ3 report is a game changer. Analyst Camilo Lyon: "We are most excited about what appears to be a meaningful change in LOVE's gross margin profile as FQ3 gross margin of 55.3% reached LOVE's stated mid-50s goal several quarters earlier than expected. The company reduced its level of discounting yet grew its customer base +34%, including almost +40% growth in Sactionals customers, a significant driver of the almost 500bp expansion. This feat should not be taken lightly as we believe it suggests the company is at a tipping point of customer acquisition that is becoming incrementally more profitable and less reliant on promotions. While tariff headwinds remain (~42% of inventory purchases originate from China), the impact to gross margin should abate over the following quarters and be more than offset by what we believe to be long-term structural gross margin benefits." Lyon says in regard

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Lovesac called a long-term margins winner by BTIG