Lovesac designs and sells premium modular furniture direct-to-consumer through 278 showrooms, its website, and Costco pop-ups. The core product is Sactionals (~91% of net sales), a modular sectional sofa system built around two standardized components — seats and sides — that snap together in any configuration and can be re-covered, rearranged, and expanded over time. Lovesac guarantees compatibility across all product generations, and patents on the coupling mechanism run through 2035-2043. The company also sells Sacs (oversized beanbag chairs, ~6% of net sales), and recently launched Snugg, a simpler non-modular sofa at a lower price point, and a power Reclining Seat that integrates into existing Sactionals setups. StealthTech, a Harman Kardon surround sound and wireless charging system, embeds invisibly into Sactionals. Lovesac sells at premium price points — a typical Sactionals setup runs above $6,000 — with gross margins in the high-50s%. The business model centers on repeat purchases: management reports 85% of customers add to or modify their initial purchase, and nearly half of all transactions come from existing customers. Because Sactionals disassemble into compact pieces, they ship via standard couriers, which Lovesac argues is a structural logistics advantage over traditional large furniture. The business is highly seasonal, with ~36% of net sales in Q4. Most production is sourced from Vietnam, Malaysia, and Indonesia, and Lovesac is shifting Sactionals seat insert manufacturing to the U.S. to reduce tariff exposure. The company's next major growth initiative is an expansion into a new room of the home, planned for early 2027.