LOVE - Lovesac trades higher after earnings topper

The Lovesac Company (NASDAQ:LOVE) gained in early trading on Wednesday after reporting a 42.2% rise in comparable sales during Q1 with strong growth seen across showrooms and on the Internet. Total sales rose 56% during the quarter to outpace the 44.8% increase in operating expenses. Gross margin fell to 51.1% of sales from 55.6% a year ago as distribution costs and tariff expenses dragged. Adjusted EBITDA was up 19.5% to $6.4M. The increae in comparable showroom sales during the quarter was tied to higher point of sale transactions with lower promotional discounting, a strong Easter promotional campaign and the addition of 31 new showrooms, 13 kiosks, and 2 mobile concierges compared a year ago. Net income was $1.9M in Q1 vs. $2.1M a year ago. Lovesac (LOVE) ended the quarter with an inventory position of $123M vs. $56.0M a year ago. The co,pany said the higher inventory position was to

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Lovesac trades higher after earnings topper