Why Lovesac Stock Was Down Today After Beating Sales Expectations

Shares of Lovesac (NASDAQ: LOVE) were down 10.3% as of 12:08 p.m. ET on Wednesday after the company delivered results for its fiscal 2023 first quarter.

For the period, which ended May 1, net sales grew 56% year over year, beating analysts' consensus estimate. Though its gross margin fell by 4.5 percentage points, the company still reported earnings per share of $0.12, down only $0.01 from the year-ago quarter.

Lovesac is popular for its "Sactionals" -- modular couches that can be arranged in a variety of configurations. Sactionals represented 87% of total sales in its fiscal 2022. Total net sales reached $129 million in fiscal Q1, giving Lovesac a nearly 50% compound annual growth rate since its initial public offering four years ago.

Source Fool.com