Shares of bean bag seat and modular furniture maker Lovesac (LOVE - Get Report) surged on Wednesday after the company reported a fiscal second-quarter loss that was far narrower than analysts' predictions on 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.

Of particular note: the company 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, thanks to the ongoing trade war and ensuing tariffs that have affected made-in-China goods.

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