The Lovesac Company (NASDAQ:LOVE) shares are trading higher after the company reported first-quarter results.

The company reported a quarterly loss per share of $0.83, narrower than the analyst consensus loss estimate of $0.96. Lovesac's sales totaled $132.64 million, beating the street view of $128.07 million.

Net sales decreased 6.1% year over year, primarily due to a 14.8% decrease in omni-channel comparable net sales.

Gross profit increased by 2.1%, while gross margin increased 430 basis points to 54.3%.

The cash and cash equivalents balance as of May 5 was $72.4 million. Total merchandise inventory was $94.7 million, as compared to $104.5 million a year ago.

During the first quarter, the firm opened 24 additional showrooms and closed three and five kiosks.

Outlook: Lovesac reaffirmed fiscal 2025 outlook. It sees net sales of $700 million-$770 million versus $714.53 million estimate. The firm projects diluted EPS of $1.06-$1.59 versus a $1.23 estimate.

Lovesac sees second-quarter net sales of $152 million-$160 million versus $156.18 million estimate. The firm projects a basic loss per share of $0.37 – $0.53 versus a $0.07 loss estimate.

Price Action: LOVE shares are trading higher by 0.81% to $26.19 at last check Thursday.

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