Why Lovesac (LOVE) Shares Are Trading Lower Today

What Happened?

Shares of furniture company Lovesac (NASDAQ:LOVE) fell 3% in the afternoon session after the company disclosed it suffered a data breach resulting from a ransomware attack. 

According to reports, hackers gained unauthorized access to Lovesac's internal systems between February 12 and March 3, 2025, and stole data. The incident is linked to the RansomHub ransomware group. While the company has not disclosed the exact number of individuals affected, the stolen information includes full names and other sensitive personal identifiers. Lovesac discovered the suspicious activity on February 28. In response, the company is offering two years of complimentary identity monitoring and credit protection services through Experian to those impacted. Lovesac stated that it has no indication the stolen data has been misused but has taken steps to secure its network against future attacks.

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What Is The Market Telling Us

Lovesac’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock dropped 4.3% on the news that the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.

Lovesac is down 18% since the beginning of the year, and at $19.62 per share, it is trading 49.2% below its 52-week high of $38.64 from December 2024. Investors who bought $1,000 worth of Lovesac’s shares 5 years ago would now be looking at an investment worth $634.62.

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