Shares of bean bag seat and modular furniture maker Lovesac  (LOVE) - Get Report surged more than 22% on Wednesday after the company reported a fiscal second-quarter loss far narrower than analysts' predictions amid strong demand for its "sactional" seats and sides, even as the company noted its struggles navigating around the U.S.-China tariff spat.

The Stamford, Conn.-based company posted an adjusted loss of $4.5 million, or 31 cents a share, for its second quarter ended Aug. 4, vs. an adjusted loss of $5.68 million, or 63 cents a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting a loss of 51 cents a share. Sales came in at $48.1 million, up from $33.2 million a year ago and also above analysts' forecasts.

"We are further strengthening our multi-channel model with the addition of productive new showrooms, the expansion of our pop-up shop business at Costco and the announcement of a brand new shop in shop pilot with Macy's that is expected to launch late in the third quarter," CEO Shawn Nelson said in a statement.

Nelson added that the company is sticking to its full-year guidance despite reducing its manufacturing in China from 75% at the beginning of the year to 44% as of September.

"We believe this puts us on a path to being completely out of China, if necessary, well before the end of next year," he said, noting that the company is reiterating its full-year outlook for 40% to 45% revenue growth and positive adjusted earnings before income, taxes, depreciation and amortization.

Lovesac specializes in a patented modular furniture system called Sactionals. Sactionals consist of two combinable pieces, "Seats" and "Sides, " as well as custom-fit covers and associated accessories. Lovesac also sells Sacs, a beanbag filled with a proprietary foam mixture. 

Shares of Lovesac were up 22.05%, or $4.06 a share, at $22.47 in early trading on Wednesday.