LOVE - Lovesac: Still Attractive Despite Guidance Skepticism

2024-07-13 02:41:28 ET

Summary

• Lovesac's growth has slowed down due to industry weakness, but underneath, the company is still expanding showrooms, creating a great foundation for a growth return.
• The company's FY2025 guidance could see a revisit downwards as industry struggles seem to persist, but the long-term growth story still stands.
• The stock's valuation is still attractive, compensating for the short-term growth issues.

The Lovesac Company ( LOVE ), the furnishings manufacturer and retailer, has slowed down the company’s growth due to challenges in the furnishings industry. Yet, financials continue at a healthy level, and I believe that Lovesac is positioned well to return to growth after the industry softness subsides with continued showroom expansion and other growth initiatives....

For further details see: