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LOVE (The Lovesac Co) Degree of Operating Leverage : 9.91 (As of Apr. 2025)


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What is The Lovesac Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The Lovesac Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 9.91. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for The Lovesac Co's Degree of Operating Leverage or its related term are showing as below:

LOVE's Degree of Operating Leverage is ranked worse than
89.81% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.215 vs LOVE: 9.91

The Lovesac Co Degree of Operating Leverage Historical Data

The historical data trend for The Lovesac Co's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Lovesac Co Degree of Operating Leverage Chart

The Lovesac Co Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.19 3.12 -0.29 -2.47 19.48

The Lovesac Co Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.70 -12.50 -369.15 19.48 9.91

Competitive Comparison of The Lovesac Co's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, The Lovesac Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Lovesac Co's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, The Lovesac Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where The Lovesac Co's Degree of Operating Leverage falls into.


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The Lovesac Co Degree of Operating Leverage Calculation

The Lovesac Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 16.55 (Apr. 2025) / 17.926 (Apr. 2024) - 1 )/( 686.358 (Apr. 2025) / 691.715 (Apr. 2024) - 1 )
=-0.0768/-0.0077
=9.91***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


The Lovesac Co  (NAS:LOVE) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


The Lovesac Co Degree of Operating Leverage Related Terms

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The Lovesac Co Business Description

Traded in Other Exchanges
N/A
Address
421 Atlantic Street, Stamford, CT, USA, 06901
The Lovesac Co designs, manufactures and sells alternative furniture which is comprised of modular couches called sactionals and premium foam beanbag chairs called sacs. It also offers other accessories such as sactional-specific drink holders, Footsac blankets, decorative pillows, fitted seat tables, and ottomans. Its products are sold across the United States through its website or company-owned retail stores which are used in homes and offices. The majority of the firm's revenue is derived from the sale of Sactionals.
Executives
Albert Jack Krause director, officer: President and COO 2 LANDMARK SQUARE, SUITE 300, STAMFORD CT 06820
Walter Field Mclallen director 1225 17TH AVE SOUTH, NASHVILLE TN 37212
Shawn David Nelson director, officer: Chief Executive Officer 2 LANDMARK SQUARE, SUITE 300, STAMFORD CT 06820
Keith R. Siegner officer: EVP and CFO TWO LANDMARK SQUARE, SUITE 300, STAMFORD CT 06901
Andrew R Heyer director, 10 percent owner 501 MADISON AVENUE, FLOOR 5, NEW YORK NY 10019
Satori Capital, Llc 10 percent owner 2501 N. HARWOOD ST., 20TH FLOOR, DALLAS TX 75201
Vineet Mehra director 330 HUDSON STREET, 13TH FLOOR, NEW YORK NY 10013
Sharon M Leite director 100 PIER 1 PLACE, FT. WORTH TX 76102
Shirley Romig director TWO LANDMARK SQUARE, SUITE 300, STAMFORD CT 06901
Mary Fox director TWO LANDMARK SQUARE, SUITE 300, STAMFORD CT 06901
Mistral Equity Partners, Lp 10 percent owner 650 FIFTH AVENUE, 31ST FLOOR, New York NY 10019
Mistral Sac Holdings, Llc 10 percent owner 650 FIFTH AVENUE, FLOOR 10, NEW YORK NY 10019
Jared Rubin director 4300 E. FIFTH AVE., COLUMBUS OH 43219
Sac Acquisition Llc 10 percent owner 700 CANAL STREET, 4TH FLOOR, STAMFORD CT 06902
Donna Dellomo officer: Executive VP and CFO 35 SAWGRASS DRIVE, SUITE 2, BELLPORT NY 11713