STAMFORD, Conn. - American furniture manufacturer and retailer Lovesac saw its stock soar 23 percent earlier this week, as its second-quarter loss was much less severe than analysts had expected.
The company, known mostly for its beanbag furniture and patented Sactional modular furniture system, saw a net loss of $4.8 million for the quarter, compared with a loss of $7 million the same time last year. Lovesac saw sales rise 44.8 percent - reaching $48.1 million - for the quarter, compared to just over $33 million last year.
“We reported a strong second quarter with revenue growth of close to 45%, as the entire team is executing our strategies to expand the Lovesac brand,” said CEO Shawn Nelson in a statement. “We are further strengthening our multi-channel model with the addition of productive new showrooms, the expansion of our pop-up shop business at Costco and the announcement of a brand new shop-in-shop pilot with Macy’s that is expected to launch late in the third quarter, as well as increasingly effective advertising and marketing strategies.”
In an effort to mitigate tariffs, the company has reduced its manufacturing presence in China from 75 percent at the beginning of the year to 44 percent as of this month. Nelson said the company should be completely out of China before the end of next year. Much of the manufacturing will be transferred to Vietnam.
Lovesac is an American furniture retailer, specializing in a patented modular furniture system called Sactionals. Sactionals consist of two combinable pieces, “Seats” and “Sides,” as well as custom-fit covers and associated accessories. Lovesac also sells Sacs, a beanbag filled with a proprietary foam mixture. In 2012, Lovesac was named the fastest growing furniture company in the U.S. by Furniture Today magazine as well as recognized for being one of the top 100 furniture companies.
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