Why Lovesac Stock Soared Today
Shares of furniture brand Lovesac (NASDAQ: LOVE) soared on Tuesday after the company reported financial results for the fourth quarter of fiscal 2023. As of noon ET today, Lovesac stock was up 15% for the day and has now rebounded 57% from the 52-week lows it hit in December.
Lovesac sells large beanbag chairs and sectional couches that it affectionately calls Sactionals. In the fourth quarter, the company had net sales of $239 million, an increase of almost 22% from the prior-year period. And for fiscal 2023, which ended in January, net sales were up 31% to $652 million.
The market is likely excited with Lovesac's fourth-quarter results because net sales were stronger than expected and its growth rate accelerated from the previous quarter. Management had guided for net sales growth in the "high single digits to the mid-teens range" -- and growth of 22% far exceeded that. And in the third quarter of fiscal 2023, Lovesac grew by only 15.5%.
Source Fool.com
