Lovesac Co., a furniture retailer known for its modular couches and seats, experienced a sharp decline in its stock price on Thursday's pre-market trading session. The company's shares plummeted by 17.46%, signaling a significant market reaction to its recently reported third-quarter financial results.
According to the earnings report, Lovesac's Q3 sales of $149.9 million fell short of analysts' estimates of $155.3 million. Additionally, while the company reported a narrower net loss of $4.9 million compared to the expected $5.43 million, its adjusted EBITDA of $2.7 million was well below the consensus estimate of -$1.39 million.
The disappointing financial performance, particularly the weaker-than-anticipated sales figures, appears to be the primary driver behind the stock's pre-market plunge. Investors may be concerned about the company's ability to sustain growth and meet market expectations amidst the challenging economic environment.
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