The Lovesac Company

LOVE: Is The Lovesac Company Halal?

The Lovesac Company

NASDAQConsumer CyclicalUS

$17.29

-1.76%

Market Cap: 253.1M

Compliance Status

Not Halal

Screened on Aug 12, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is The Lovesac Company (LOVE) halal? Not Halal. Based on AAOIFI screening, The Lovesac Company passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

76.1% of 30.0% limit

What this means for you

Most scholars advise not holding LOVE

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About The Lovesac Company

The Lovesac Company designs, produces, and distributes distinctive furniture items. Their product range features "Sactionals," an innovative modular seating system made up of individual seats and sides, along with "Sacs," oversized foam-filled beanbag chairs. They also offer various complementary accessories, such as drink holders, "Footsac" blankets, decorative pillows, specialized fitted seat tables, and ottomans. As of January 30, 2022, the company maintained 146 showrooms. Lovesac primarily sells its products through its website, lovesac.com, bolstered by a network of physical showrooms found in upscale malls, lifestyle centers, kiosks, mobile concierge units, and street locations throughout 39 U.S. states. They also utilize in-store pop-up shops and dedicated shop-in-shop spaces. The company was established in 1995 and is headquartered in Stamford, Connecticut.

Sector: Consumer Cyclical · Industry: Furnishings, Fixtures & Appliances

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 12, 2026

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q1 2027Data source: FMP

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is The Lovesac Company (LOVE) halal to invest in?
The Lovesac Company (LOVE) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did The Lovesac Company get a F compliance rating?
The Lovesac Company (LOVE) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 76.1% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change The Lovesac Company's Shariah verdict?
The Lovesac Company's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is The Lovesac Company re-screened for Shariah compliance?
The Lovesac Company (LOVE) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 12, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.