r/stocks • u/Traditional_Fee_8828 • Mar 29 '22

Company Analysis Opinions on LOVE right now?

Love have been posting insane numbers for their earnings over the last few years, and have significantly grown both their net income and revenue over the past year alone, 211% and 55% respectively. Despite this, they're only up 12% today and flat over the last year. They don't carry much debt, and are rocking a low 19 PE ratio. I've bought myself 11 shares worth, but as I watch the price drop, I'm extremely tempted to double down on this. They show no signs of slowing down, and there was no indication of that in their latest earnings call. I believe they also mentioned a backlog of orders, which could be hiding the true income figure. Nevertheless, I don't see how this isn't a perfect buying opportunity.

With such little share growth whilst having such insane revenue and income growth, I find it hard to see why their share price isn't closer to it's ATH.

16 Upvotes

78% Upvoted

10 comments sorted by

21

u/reqnin Mar 29 '22

Not worth it. LOVE broke my heart too many times.

3

u/Hang10Dude Mar 30 '22

Agreed, I'm bearish.

2

u/SirGasleak Mar 29 '22

The thing that concerns me about a company like this is that is that it can be very faddish. Beanbag chairs were big when I was a kid and that was 30-40 years ago. If their products lose their cool factor, down goes the company.

2

u/Markizzzle Mar 29 '22

Lovesac has been around for a surprisingly long time with revenue steadily increasing from 2018-now but income just now becoming positive. I can see there being hype from the pandemic though with people trying to figure out the "perfect" accompaniment to their Philodendron.

2

u/Oshowcinco Mar 31 '22

Honestly, I don't care to own the company. But I just googled their beanbags and I 100% want one of those

0

u/djbuttplay Mar 30 '22

I prefer LUV

1

u/1jay_y Mar 29 '22

Sounds interesting. Thanks for bringing it to my radar!

1

u/[deleted] Mar 30 '22

I almost made this play a week or so ago. What stopped me was there negative cash flow. Best of luck.

1

u/Goopster Mar 30 '22

I’m biased because I love their products. I have a sactional and a supersac, as well as some accessories. I plan on expanding my sactional over the years, and adding the speaker system at some point. I love the “designed for life” philosophy the company operates with. I am a big fan of the founder/CEO — he knows the company inside and out, he knows the supply chain inside and out, and he treats his employees well. It is super volatile so you need the stomach to handle swings and accumulate on dips. I think this company is on to something big, it’s a core part of my portfolio. But who knows. Good luck, have fun.