Lovesac Co (NASDAQ: LOVE) stock crashed over 20% on 11th June, 2019 (As of 9:50 am GMT-4; Source: Google finance) as the company in the first quarter of FY 20 has reported the net loss and net loss attributable to common shares of $9.1 million compared to a net loss of $5.7 million. There were no preferred dividends and deemed dividends in the first quarter of fiscal 2020. The company has delivered the adjusted EBITDA. that was a loss of $4.7 million in the first quarter of fiscal 2020 compared to a loss of $4.2 million in the first quarter of fiscal 2019. Gross margin fell by 340 basis points to 51.3% in the first quarter of fiscal 2020 from 54.7% in the first quarter of fiscal 2019 primarily due to the 10% tariffs partially offset by reduced costs of Sactionals and Sac products. This cost reduction was mainly related to savings from a change in the sourcing of Lovesoft and down blend fills. Gross profit dollars grew 43.3% to $21.0 million in the first quarter of fiscal 2020 from $14.6 million in the first quarter of fiscal 2019.
Moreover, the company has reported 53% increase in the net sales to $41.0 million in the first quarter of fiscal 2020 from $26.8 million in the first quarter of fiscal 2019. This grown was driven by strong showroom, Internet and shop in shop performance as a result of an increase in new customers. This was combined with an increase in the total number of units sold and continued accelerated investments in marketing to increase brand awareness. Comparable sales, which includes showroom and internet sales, increased 43.5%. Comparable showroom sales rose 31.7% and internet sales increased 85.3%. In the first quarter of fiscal 2020, the company had opened five new showrooms, closed two, and remodeled three showrooms and ended the quarter with 78 showrooms in 30 states. This represents a unit rise of 15% over the same quarter in the prior year.
Meanwhile, LOVE has recently completed a secondary public offering of an aggregate of 2,875,000 shares of common stock, at a public offering price of $36.00 per share, that also includes 750,000 shares offered by the Company. The Company plans to use the net proceeds raised from this offering for increased sales and marketing expenses, product development, and working capital and other general corporate purposes.