Lovesac restates FY2023 & Q1 FY2024; operating income overstated by up to $3M

Lovesac Co

Audit Committee investigation found $2.2M journal entry capitalizing shipping expenses that related to prior year.
Operating income for FY2023 overstated by ~$2.0M to $3.0M; net income overstated by ~$1.5M to $2.5M.
For the 13 weeks ended April 30, 2023, errors overstated operating and net income by less than $0.5M each.
Company expects one or more material weaknesses in internal control over financial reporting to be identified.
Previously filed 10-K for FY2023, 10-Q for Q1 FY2024, and related earnings communications should no longer be relied upon.

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