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Lulu's Fashion Lounge Holdings, Inc. (LVLU)
:LVLU
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Lulu's Fashion Lounge Holdings
(NASDAQ:LVLU)
41Neutral
Lulu's Fashion Lounge Holdings (LVLU) vs. S&P 500 (SPY)
Market Cap
$16.62M
Dividend YieldN/A
Average Volume (3M)65.67K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-11.06%
EPS Growth-175.45%
CountryUS
Employees686
SectorConsumer Cyclical
Sector Strength51
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.33
Shares Outstanding42,721,420
10 Day Avg. Volume159,128
30 Day Avg. Volume65,668
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.06
Price to Cash Flow (P/CF)-0.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.00Price Target Upside156.41% Upside
Rating ConsensusHold
Number of Analyst Covering2
Lulu's Fashion Lounge Holdings Business Overview & Revenue Model
Company DescriptionLulu's Fashion Lounge Holdings, Inc. operates as an online retailer of women's clothing, shoes, and accessories. The company offers dresses, tops, bottoms, bridal wear, intimates, swimwear, footwear, and accessories under the Lulus brand. It sells its products through owned media, which primarily consists of its website, mobile app, social media platforms, email, and SMS; and earned and paid media, as well as social media platforms. The company primarily serves Millennial and Gen Z women. Lulu's Fashion Lounge Holdings, Inc. was founded in 1996 and is headquartered in Chico, California.
How the Company Makes MoneyLulu's Fashion Lounge Holdings generates revenue primarily through its e-commerce platform by selling fashion products directly to consumers. The company's key revenue streams include online sales of clothing, footwear, and accessories. Lulu's utilizes a direct-to-consumer model, which allows it to maintain competitive pricing and a broad selection of fashion-forward merchandise. Significant partnerships with fashion influencers and strategic marketing initiatives also contribute to driving sales and expanding brand reach. Additionally, the company leverages data analytics to optimize inventory and personalize customer experiences, further enhancing its revenue potential.
Lulu's Fashion Lounge Holdings Financial Statement Overview
Summary
Lulu's Fashion Lounge Holdings is experiencing financial difficulties, indicated by revenue and profitability declines. The balance sheet shows high leverage and weakened equity, while cash flow management faces challenges despite some operational cash generation.Income Statement
Lulu's Fashion Lounge Holdings has experienced a steep revenue decline of 11.05% from 2023 to 2024. The gross profit margin decreased to 41.23% in 2024 from 41.73% in 2023, indicating a slight erosion in cost efficiency. The company faced significant losses, with a net profit margin of -17.49% for 2024. This negative trend in profitability, combined with declining EBIT and EBITDA margins, reflects challenges in managing operational costs and achieving profitability.45
Neutral
Balance Sheet
The company's financial leverage has increased, with a debt-to-equity ratio of 2.94 in 2024, highlighting significant reliance on debt financing. The equity position has weakened, with a return on equity (ROE) of -413.58% due to losses. The equity ratio stands at 12.35%, indicating a low proportion of equity financing, which poses a risk to financial stability.35
Negative
Cash Flow
The free cash flow has declined, showing a decrease of 88.67% from 2023 to 2024. The operating cash flow to net income ratio is positive, suggesting some level of operational cash generation despite losses. However, the free cash flow to net income ratio reflects challenges in converting earnings into cash, indicative of underlying cash management issues.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 324.70M | 315.89M | 355.18M | 439.65M | 375.63M | 248.66M | Gross Profit |
| 134.52M | 130.25M | 148.23M | 191.45M | 176.73M | 110.29M | EBIT |
| -25.26M | -52.39M | -20.21M | 8.74M | 22.34M | -4.67M | EBITDA |
| -18.89M | -52.39M | -14.46M | 16.27M | 23.93M | -1.32M | Net Income Common Stockholders |
| -30.64M | -55.29M | -19.33M | 3.73M | 2.04M | -19.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 40.93M | 4.46M | 2.51M | 10.22M | 11.40M | 15.55M | Total Assets |
| 145.25M | 108.20M | 149.44M | 167.20M | 113.78M | 105.08M | Total Debt |
| 103.39M | 39.35M | 39.08M | 58.50M | 25.00M | 115.56M | Net Debt |
| 62.47M | 34.89M | 36.57M | 48.28M | 13.60M | 100.01M | Total Liabilities |
| 165.19M | 94.83M | 88.49M | 102.31M | 69.25M | 140.63M | Stockholders Equity |
| -19.94M | 13.37M | 60.95M | 64.89M | 44.52M | -35.55M |
| Cash Flow | Free Cash Flow | ||||
| -3.95M | 1.30M | 11.49M | 1.19M | 23.93M | 2.88M | Operating Cash Flow |
| -546.00K | 2.60M | 15.42M | 6.20M | 26.90M | 4.86M | Investing Cash Flow |
| -3.41M | -2.87M | -4.00M | -5.12M | -3.39M | -1.91M | Financing Cash Flow |
| -2.60M | 2.23M | -19.13M | -2.77M | -27.65M | 6.75M |
Lulu's Fashion Lounge Holdings Technical Analysis
Negative
0.39
Price Trends
0.69
Negative
0.95
Negative
1.25
Negative
Market Momentum
-0.09
Negative
28.68
Positive
4.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVLU, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.69, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 28.68 is Positive, neither overbought nor oversold. The STOCH value of 4.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LVLU.
Lulu's Fashion Lounge Holdings Risk Analysis
Lulu's Fashion Lounge Holdings disclosed 72 risk factors in its most recent earnings report. Lulu's Fashion Lounge Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lulu's Fashion Lounge Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.75B | 12.06 | 17.56% | ― | 7.71% | 40.01% | |
70 Outperform | $1.93B | 9.76 | 46.71% | 3.69% | -3.44% | -11.74% | |
69 Neutral | $3.09B | 8.04 | 21.14% | 0.95% | -3.67% | -14.66% | |
66 Neutral | $4.08B | 14.05 | 29.58% | 3.11% | 2.20% | 120.00% | |
61 Neutral | $3.86B | 7.14 | 47.77% | ― | 15.60% | 71.45% | |
59 Neutral | $12.24B | 11.04 | -1.00% | 3.78% | 1.30% | -19.54% | |
41 Neutral | $16.62M | ― | -148.78% | ― | -11.06% | -175.45% |
* Consumer Cyclical Sector Average
Performance Comparison
LVLU
Lulu's Fashion Lounge Holdings
0.40
-1.09
-73.15%
ANF
Abercrombie Fitch
76.37
-55.47
-42.07%
BKE
Buckle
38.32
1.28
3.46%
JWN
Nordstrom
24.45
4.94
25.32%
URBN
Urban Outfitters
52.40
7.52
16.76%
ASO
Academy Sports and Outdoors
45.61
-20.61
-31.12%
Lulu's Fashion Lounge Holdings Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -7.14% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Despite strong performance in special occasion categories and successful brand campaigns, the call highlighted significant challenges, including revenue declines, profitability issues, and a substantial net loss due to goodwill impairment. Cost reduction measures have been effective, but challenges in separates and shoe categories continue to weigh on performance.Highlights
Positive Growth in Special Occasion Categories
Special occasion and bridesmaid categories delivered positive mid-teens year-over-year net sales growth. First-time reorders of new products increased by 24% compared to last year's Q4.
Inventory and Return Rate Improvements
Inventory reduced by 4% year-over-year with return rates improving by 150 basis points for the second consecutive quarter.
Successful Brand Campaigns and Collaborations
Brand campaigns and collaborations increased social engagement by 33% quarter-over-quarter. Wholesale revenue grew 76% year-over-year in Q4.
Cost Reductions and Operating Efficiency
Achieved a 19% reduction in operating expenses in the second half of 2024 compared to the first half, exceeding expectations. Gross profit decline was offset by cost savings.
Lowlights
Decline in Net Revenue
Q4 net revenue was down 12% year-over-year. Full-year net revenue decreased by 11% compared to 2023.
Gross Margin and Profitability Challenges
Gross margin declined by 120 basis points in Q4. Adjusted EBITDA loss was $3.3 million in Q4 2024 compared to a $2 million loss in Q4 2023.
Net Loss and Goodwill Impairment
Q4 net loss of $31.9 million due to a $28.4 million noncash goodwill impairment charge. Excluding the impairment, adjusted net loss was $3.5 million.
Challenges in Separates and Shoe Categories
Separates and shoe categories drove the majority of year-over-year net sales declines. Gross margin impacted by higher markdown sales.
Company Guidance
During Lulu's Fourth Quarter and Fiscal Year 2024 earnings call, the company provided guidance for fiscal year 2025, anticipating net revenue to be between $280 million and $310 million, reflecting a decrease of 11% to 2% compared to 2024. The company expects an inflection to positive adjusted EBITDA, projected to be between $0 and $6 million, representing an increase of $9.7 million to $15.7 million from 2024. Lulu's aims to achieve a net debt position between $3 million and $4 million by the end of Q1 2025, down from $8.6 million at the end of Q4 2024. The company plans to remain operating cash flow positive for 2025, including in Q1, with capital expenditures expected to range from $2.5 million to $3 million, marking a 13% decrease or flat compared to the previous year. These projections assume stable demand and improvements in product assortment and brand initiatives, though the company remains cautious about macroeconomic pressures and potential tariff impacts.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.