The Lovesac Company
LOVE Consumer Cyclical Furnishings Fixtures & Appliances
The Lovesac Company’s revenue for fiscal 2026 (year ended January 2026) was $697.1 million, up 2.42% from fiscal 2025. In the quarter to July 2026, revenue was flat, EPS grew 213.3% and free cash flow grew 122.1%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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The Lovesac Company (LOVE) Altman Z-score
The Lovesac Company's Altman Z-score for fiscal 2026 is 1.97, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 1.97 | (0.42) |
| FY2025 | 2.39 | (0.45) |
| FY2024 | 2.84 | (0.49) |
| FY2023 | 3.33 | 0.24 |
| FY2023 | 3.09 | (1.22) |
| FY2022 | 4.31 | (0.34) |
| FY2022 | 4.65 | (5.46) |
| FY2021 | 10.11 | 1.58 |
| FY2021 | 8.53 | 4.58 |
| FY2020 | 3.95 | (0.72) |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.17 | — | 0.20 | |
| Retained earnings / total assets | 0.04 | — | 0.06 | |
| EBIT / total assets | 0.01 | — | 0.03 | |
| Market value of equity / total liabilities | 0.62 | — | 0.37 | |
| Sales / total assets | 1.30 | — | 1.30 | |
| Altman Z-score | Grey zone | 1.97 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 2.04 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| FLXS Flexsteel Industries, Inc. compare | 5.9× |
| HOFT Hooker Furnishings Corp. compare | 3.6× |
| KEQU Kewaunee Scientific Corporation compare | 3.4× |
| VIRC Virco Manufacturing Corporation compare | 2.6× |
| BSET Bassett Furniture Industries, Incorporated compare | 2.4× |
| LOVE The Lovesac Company | 2.0× |
| LCUT Lifetime Brands, Inc. compare | 1.6× |
| COOK Traeger, Inc. compare | −0.9× |
| ATER Aterian, Inc. compare | −33.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets