Lovesac announced on August 16, 2023, that there were “certain errors with the methodology used by the Company to calculate the accrual of its last mile freight expenses applicable to the Company’s financial statements for the fiscal year ended January 29, 2023 and the thirteen weeks ended April 30, 2023.” Lovesac added, “as a result of the identified errors related to last mile freight expenses, the Company believes that previously reported operating income and net income were overstated by approximately $1.5 million to $2.5 million and $1.0 million to $2.0 million, respectively, for fiscal year 2023.”
On this news, the price of Lovesac stock fell $0.7, or 2.95%, to close at $23.06 per share, on August 17, 2023.
