The Lovesac CoLOVE +12.07%78 Operating Margin % is -12.57% as of Apr. 2026. GuruFocus rates LOVE with a GF Score™ of 78/100 and a GF Value™ of $23.79 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 433 Furnishings, Fixtures & Appliances companies, The Lovesac Co ranks worse than 67.9% on this metric.
The Lovesac Co operating margin has been in a 5-year decline. The average rate of decline per year is -31.9%.
The historical rank and industry rank for The Lovesac Co's Operating Margin % or its related term are showing as below:
LOVE'
s Operating Margin % Range Over the Past 10 Years
Min: -8.08 Med: 1.39 Max: 8.14
Current: 0.42
LOVE's Operating Margin % is ranked worse than 67.9% of 433
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 3.79
vs LOVE: 0.42
The Lovesac Co's 5-Year Average Operating Margin % Growth Rate was -31.90% per year.
The Lovesac Co (NAS:LOVE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Lovesac Co Operating Margin % Related Terms
The Lovesac Co Operating Margin % Historical Data
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The historical data trend for The Lovesac Co's Operating Margin % 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.
LOVE vs FLXS, LCUT, COOK: Operating Margin % Comparison
For the Furnishings, Fixtures & Appliances subindustry, The Lovesac Co's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, The Lovesac Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Lovesac Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Lovesac Co's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
The Lovesac Co (LOVE) has a Operating Margin % of -12.57% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Lovesac Co and its competitors. According to the industry distribution chart, The Lovesac Co ranks #294 out of 433 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 67.9%.
Is The Lovesac Co's Operating Margin % too high?
The Lovesac Co's current Operating Margin % is -12.57%. Based on the distribution chart, The Lovesac Co ranks #294 out of 433 companies in the Furnishings, Fixtures & Appliances industry, which is below the industry midpoint. Overall, The Lovesac Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Lovesac Co's Operating Margin % compare to FLXS and LCUT?
According to the Furnishings, Fixtures & Appliances industry distribution chart, The Lovesac Co ranks #294 out of 433 companies for Operating Margin %. This places The Lovesac Co in the lower half of its industry. The industry median Operating Margin % is 3.79. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Furnishings, Fixtures & Appliances company?
The median Operating Margin % among Furnishings, Fixtures & Appliances companies is 3.79, based on 433 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Lovesac Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Operating Margin % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Lovesac Co's current Operating Margin % is -12.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Lovesac Co stock overvalued right now?
Based on GuruFocus' analysis, The Lovesac Co (LOVE) is currently considered Significantly Undervalued. The stock's GF Value™ is $23.79, compared to a current price of $16.34 — trading 31.3% below its estimated fair value. The current Operating Margin % is -12.57%. The Lovesac Co's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Lovesac Co (LOVE), the current Operating Margin % is -12.57% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Lovesac Co (LOVE) Overvalued in 2026?
Based on GuruFocus' analysis, The Lovesac Co stock appears to be undervalued.
The current stock price of $16.34 is trading 31.3% below its estimated GF Value™ of $23.79.
GuruFocus considers The Lovesac Co to be Significantly Undervalued.
Key valuation signals for LOVE:
Operating Margin %: -12.57%
GF Value™: $23.79 vs. price of $16.34 (31.3% below fair value)
No single metric tells the full story. See the LOVE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
78GF Score
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