Here's Why I Just Bought Lovesac Stock
Shares of Lovesac (NASDAQ: LOVE) recently dropped more than 15% after the company announced results from its fiscal first quarter. Jittery investors heard management mention "supply chain headwinds" and hit the sell button before thinking it through.
Shares of the modular sofa manufacturer may be under pressure, but the underlying business is stronger than ever. After already thinking about adding Lovesac stock to my portfolio, the post-earnings dip created a bargain opportunity that was just too tempting to pass up.
During its fiscal first quarter ended May 1, 2022, Lovesac reported a 56% year-over-year surge in sales. The stock fell despite blazing fast top-line growth because its gross margin contracted 4.5% compared to the previous year period. The company cited shipping expenses that soared 6.4% over the same time frame.
Source Fool.com
