MASHINIi

The Lovesac Company.

LOVE.US | Retail sale of electrical household appliances, furniture, lighting equipment and other household articles in specialized stores

The Lovesac Company is a specialty retailer of alternative furniture, primarily selling modular couches called Sactionals, beanbag chairs called Sacs, and related accessories. The company operates through a network of branded showrooms, e-commerce platforms, and shop-in-shop locations within larger ...Show More

Ethical Profile

Mixed.

The Lovesac Company faced SEC charges and a $1.5 million civil penalty for accounting violations in FY23, prompting financial restatements. Reports suggest significant pay inequality, with the CEO pay ratio reaching 307:1, while median employee compensation was $23,069 in 2025. Low pay and alleged lack of health insurance for part-time associates are concerns. Environmentally, Lovesac aims for zero waste and net-zero emissions by 2040, repurposing over 240 million plastic bottles into products in 2024 and purchasing 6,500 Renewable Energy Credits. Their Vendor Code of Conduct includes robust ethical clauses for 85% of contracts.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-50
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-40
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-40
-100100
Respect for Cultures & Communities10
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

The provided articles are advertisements for Lovesac and explicitly state that they do not contain any data relevant to LOVE.US or the 'Better Health for All' ethical value.

1
No quantitative data, regulatory actions, certifications, comparisons, or data gaps related to health impact, safety, accessibility, or any other health-related KPIs were found.
2
Therefore, no KPIs can be scored based on the evidence provided.

Fair Money & Economic Opportunity

0

Lovesac is a specialty furniture retailer, and while it offers financing options, these are provided through a third-party, Synchrony Bank.

1
The company itself does not directly offer lending or deposit services to consumers. Therefore, Lovesac does not have its own APRs, fee structures, loan books, or financial literacy programs to evaluate under the 'Fair Money & Economic Opportunity' value. The provided article explicitly states that it contains no data relevant to customer demographics, pricing comparisons, regulatory compliance, wealth-building outcomes, underserved populations, geographic inclusion, or financial literacy initiatives for Lovesac itself.
2
As such, all KPIs are scored 0, indicating that they are not applicable to the company's direct operations.

Fair Pay & Worker Respect

-50

The company's CEO to median employee pay ratio for 2025 is 197:1, with the CEO earning $4,547,664 and the median employee earning $23,069.

1
Employee reviews indicate low worker engagement, with 53% of employees recommending working at Lovesac.
2
Reviews also frequently cite high voluntary turnover as a significant problem, with rates around 40-50%.
3
There are no significant labor-law or human-rights violations reported in the past two years. Over 80% of the workforce is on temporary or zero-hour contracts without benefits, and less than 5% of employees receive employer-funded health coverage. Employee reports indicate part-time associates working full-time hours but not receiving health insurance.
4

Fair Trade & Ethical Sourcing

0

The provided articles do not contain specific quantitative data for any of the Fair Trade & Ethical Sourcing KPIs.

1
While the company's Vendor Partner Manual outlines a Vendor Code of Conduct encompassing ethical sourcing, labor practices, and environmental responsibility,
2
and mentions a zero-tolerance policy for forced labor, human trafficking, and child labor,
3
there is no evidence of the percentage of spend covered by fair-trade certifications,
4
audit frequency,
5
number of forced or child labor incidents,
6
traceability coverage,
7
remediation speed,
8
ethical clause coverage,
9
share of spend on high-risk materials,
10
or supplier diversity spend.
11

Honest & Fair Business

-40

The company incurred a $1.5 million civil penalty from the SEC in October 2024 related to the restatement of financial statements.

1
It filed an amended Form 10-K/A for fiscal year 2023 to correct material misstatements and also restated its first quarter 2024 financial statements.
2
Additionally, it revised its financial statements for fiscal years 2022 and 2021 to correct immaterial errors.
3
The company's Code of Business Conduct and Ethics includes an anti-corruption policy covering FCPA, bribery, and corruption, with specific prohibitions on gifts, entertainment, and payments to government officials.
4
A third-party reporting hotline (EthicsPoint) is available for whistle-blowers, with an anonymous reporting option.
5

Kind to Animals

0

The provided articles, including the company's 2024 ESG Report, do not contain any specific data or metrics related to animal welfare, cruelty-free certifications, animal testing policies, or the use of ethical alternatives for animal-derived ingredients.

1
While one article mentions the company's use of leather, it does not provide quantitative data on the percentage of animal-derived inputs or any substitution efforts.
2
Therefore, no KPIs can be scored based on the available evidence.

No War, No Weapons

0

The provided articles, including annual and quarterly financial reports and ESG summaries, consistently describe Lovesac as a specialty retailer of furniture.

1
However, for all KPIs related to the 'No War, No Weapons' value, the articles explicitly state that no relevant data is provided or that specific metrics are absent. This includes information on revenue from arms contracts, R&D in dual-use technologies, sales to embargoed regimes, peacebuilding investment, conflict divestment policies, board oversight of defense activities, export end-user certificates, lobbying on arms control, human rights due diligence in conflict areas, Arms Trade Treaty compliance, AI military safeguards, UN Guiding Principles alignment, dual-use item screening, surveillance transparency, ethical red lines specific to weapons, exposure to controversial weapons, war-related supply chain audits, annual conflict partner reviews, defense divestment, conflict minerals, peace technology investment, procurement from conflict zones, and ethical red lines compliance rates.
2
Therefore, based strictly on the rule to only use explicit evidence and omit KPIs without concrete data, no KPIs can be scored.

Planet-Friendly Business

-40

The company aims for net-zero waste and emissions across its entire value chain by 2040.

1
For fiscal year 2024, 100% of electricity for showrooms and HUBs was sourced from renewables via RECs, and Scope 2 emissions were eliminated from all US showrooms for the second consecutive year (market-based) in FY25.
2
The company has a Net Zero Emissions target by 2040 but no mention of SBTi alignment or validation.
3
The company has repurposed 322 million plastic bottles by the end of FY25 and over 30 million pounds of post-industrial foam remnants.
4
Cardboard packaging contains approximately 80% recycled content and is 100% recyclable, with a target of 100% recyclable, reusable, or compostable packaging by 2040.
5
Approximately 20% of primary manufacturing vendors are in extremely high-risk regions for overall water risk, and 10% are in high-risk regions.
6
The company has a goal of achieving 100% Certified Sustainable Wood in Sactional Seats and Sides.
7
A Sustainable Supply Chain Program was launched in FY22, with 100% participation from manufacturing vendors, and ethical audits now include environmental metrics.
8
The ESG Report includes a Task Force on Climate-Related Disclosures (TCFD) index, indicating alignment is planned or in progress.
9
Conducting product Life Cycle Assessments (LCAs) is a planned activity.
10
The company has partnered with a US manufacturer to launch its first zero-landfill and net-zero emissions manufacturing facility in the United States.
11

Respect for Cultures & Communities

10

The company has no reported cultural appropriation incidents

1
and maintains a Code of Business Conduct and Ethics, aligning with a robust preventative framework.
2
It provides financial support to the Cultural Heritage Monitoring Lab (CHML), which monitors cultural heritage sites globally, indicating active protection measures.
3
The company has one formal partnership with a local community group, the Resource Access Network in Lynchburg,
4
which falls between the defined tiers, mapping to 0. While grievance mechanisms exist for employees,
5
there is no specific evidence of formal grievance mechanisms available to community stakeholders across operational sites. The company made $15,000 in charitable grants,
6
but the percentage of revenue donated to cultural heritage organizations is not specified. Donations were made to various charities,
7
and a Community Engagement Committee was formed,
8
but specific non-core revenue distributed to community development funds is not provided. DEI training is included in new hire orientation and annual compliance training,
9
but the percentage of employees completing specific cultural sensitivity training is not provided.

Safe & Smart Tech

0

No evidence available to assess The Lovesac Company on Safe & Smart Tech.

Zero Waste & Sustainable Products

0

No evidence available to assess The Lovesac Company on Zero Waste & Sustainable Products.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.