- Historic freight rates have shaved off several hundred bps from Lovesac's gross margins. While this is concerning for upcoming earnings reports, medium-term earnings expectations remain unaffected.
- With growing high-traffic showrooms and shop-in-shops, Lovesac is positioned to sustain a 30 to 40% growth rate this fiscal year.
- The current share price is too focused on current headwinds offering investors an adequate margin of safety based on a competitor-consistent 15x FWD P/E multiple.
For further details see:
Lovesac: Market Too Focused On Short-Term Headwinds