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Lulu's Fashion Lounge Holdings (LVLU)
NASDAQ:LVLU
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Lulu's Fashion Lounge Holdings
(NASDAQ:LVLU)
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Rating:48Neutral
Price Target:
$5.50
▲(7.42% Upside)
Lulu's Fashion Lounge Holdings faces significant financial challenges, including declining revenues and high leverage, which heavily impact its overall score. While there are positive developments in operational efficiency and strategic initiatives, these are overshadowed by ongoing financial difficulties. The recent appointment of a new CFO is a positive step, but the company needs substantial improvements in financial performance to enhance its stock attractiveness.
Positive Factors
Operational Efficiency
Improved operational efficiency and cost reduction enhance profitability and provide a stronger foundation for sustainable growth.
Gross Margin Improvement
Higher gross margins indicate better cost control and pricing power, which can lead to improved profitability over the long term.
New CFO Appointment
The appointment of an experienced CFO is expected to enhance financial strategy and operational efficiencies, supporting long-term growth.
Negative Factors
Declining Revenue
A decline in revenue indicates challenges in market demand or competitive positioning, which can impact long-term financial health.
High Leverage
High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.
Negative Free Cash Flow
Negative free cash flow suggests cash generation issues, which can hinder the company's ability to fund operations and growth initiatives.
Lulu's Fashion Lounge Holdings (LVLU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.44M
Dividend YieldN/A
Average Volume (3M)128.79K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-12.10%
EPS Growth-44.14%
CountryUS
Employees580
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.84
Shares Outstanding2,771,846
10 Day Avg. Volume49,473
30 Day Avg. Volume128,794
Financial Highlights & Ratios
PEG Ratio-1.08
Price to Book (P/B)788.71
Price to Sales (P/S)33.38
P/FCF Ratio8.10K
Enterprise Value/Market Cap2.50
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.30
Enterprise Value/Ebitda-0.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 the sale of its fashion products via its e-commerce platform. The company's revenue model is driven by direct-to-consumer sales, allowing it to maintain higher profit margins by selling products without intermediaries. Key revenue streams include the sale of women’s clothing, footwear, and accessories, as well as seasonal promotions and special collections. Additionally, Lulu's may engage in partnerships with influencers and fashion bloggers to enhance brand visibility and drive traffic to its online store, contributing to sales growth. The company also benefits from repeat customers and loyalty programs that encourage customer retention and increase lifetime value.
Lulu's Fashion Lounge Holdings Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in operational efficiency, gross margins, and strategic initiatives in special occasion categories and wholesale growth. However, challenges remain with a decline in net revenue, casual wear and footwear performance, and active customer counts. The company is actively addressing these issues with strategic realignment.Q3-2025 Updates
Positive Updates
Positive Adjusted EBITDA
The company sustained positive adjusted EBITDA in the third quarter, consistent with expectations, supported by a leaner cost structure and improved product margins.
Gross Margin Improvement
Gross margins expanded by 450 basis points to 42.6% over the prior year period, indicating significant improvement due to higher margin product categories and fewer markdown sales.
Special Occasion Categories Outperformance
Special occasion and bridesmaids categories continued to outperform, driving year-over-year net sales growth on top of a double-digit comparison in the prior year.
Wholesale Growth
The company achieved triple-digit 7-figure year-over-year growth in wholesale revenue, with an expansion to six major retailers in Q3.
Operational Efficiency and Cost Reduction
OpEx declined 11% year over year, with fixed costs down 18%, enabling another quarter of positive adjusted EBITDA performance.
Increased Average Order Value
Despite a 14% decrease in total orders, the average order value increased by 8%, supporting strong comp performance.
Successful Reorder Strategies
First-time reorders of new products saw sequential and year-over-year growth, with total reorder business showing success across event dress businesses.
Negative Updates
Net Revenue Decline
Net revenue decreased by 9% year over year, driven by a 14% decrease in total orders placed.
Challenges in Casual Wear and Footwear
Continued weaker performance in casual wear and footwear assortments, which the company is actively realigning.
Active Customer Count Decline
Despite brand engagement initiatives, there was a decline in active customer counts year over year.
Negative Free Cash Flow
Free cash flow during Q3 was negative $2.4 million, although it reflected a $3.9 million improvement year over year.
Company Guidance
During the third quarter of fiscal year 2025, Lulu's Fashion Lounge Holdings, Inc. reported a net revenue of approximately $73.6 million, reflecting a 9% decrease year over year. However, the company achieved a positive adjusted EBITDA of $0.4 million, a significant improvement from a $3.6 million loss in the same period last year, resulting in an adjusted EBITDA margin of 0.5%. The gross margin expanded by 450 basis points to 42.6%, supported by an 8% increase in average order value. Operational efficiencies led to an 11% reduction in operating expenses, with fixed costs down 18%. The company also strengthened its liquidity position through a new credit agreement with White Oak Commercial Finance, maintaining a net debt of $7.3 million. Looking forward, Lulu's anticipates continued year-over-year improvements in adjusted EBITDA, with full-year capital expenditures projected at approximately $2.5 million.Lulu's Fashion Lounge Holdings Financial Statement Overview
Summary
Lulu's Fashion Lounge Holdings is facing significant financial challenges, including declining revenues, negative profitability, high leverage, and cash flow difficulties. The income statement, balance sheet, and cash flow scores reflect these issues, indicating a need for strategic adjustments to improve financial stability.Income Statement
Lulu's Fashion Lounge Holdings has faced declining revenue over recent periods, with a negative revenue growth rate of -2.37% in the TTM. The company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased slightly over time, reflecting challenges in maintaining cost efficiency.45
Neutral
Balance Sheet
The balance sheet shows high leverage, with a debt-to-equity ratio of 5.93 in the TTM, indicating significant financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is low, suggesting limited equity financing and potential solvency concerns.30
Negative
Cash Flow
Cash flow analysis reveals a negative free cash flow growth rate of -224.60% in the TTM, indicating cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income to cash.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 285.41M | 315.89M | 355.18M | 439.65M | 375.63M | 248.66M |
| Gross Profit | 119.20M | 130.25M | 148.23M | 191.45M | 176.73M | 110.29M |
| EBITDA | -40.94M | -46.20M | -14.46M | 16.27M | 23.93M | -1.32M |
| Net Income | -45.08M | -55.29M | -19.33M | 3.73M | 2.04M | -19.30M |
Balance Sheet | ||||||
| Total Assets | 103.34M | 108.20M | 149.44M | 167.20M | 113.78M | 105.08M |
| Cash, Cash Equivalents and Short-Term Investments | 1.94M | 4.46M | 2.51M | 10.22M | 11.40M | 15.55M |
| Total Debt | 18.14M | 39.35M | 39.08M | 58.50M | 25.00M | 115.56M |
| Total Liabilities | 100.82M | 94.83M | 88.49M | 102.31M | 69.25M | 140.63M |
| Stockholders Equity | 2.52M | 13.37M | 60.95M | 64.89M | 44.52M | -35.55M |
Cash Flow | ||||||
| Free Cash Flow | 1.47M | -273.00K | 13.54M | 1.19M | 23.93M | 3.72M |
| Operating Cash Flow | 2.62M | 2.60M | 15.42M | 6.20M | 26.90M | 4.42M |
| Investing Cash Flow | -2.09M | -2.87M | -4.00M | -5.12M | -3.39M | -1.91M |
| Financing Cash Flow | -4.89M | 2.23M | -19.13M | -2.77M | -27.65M | 7.19M |
Lulu's Fashion Lounge Holdings Technical Analysis
Negative
5.12
Price Trends
5.09
Positive
4.67
Positive
5.42
Negative
Market Momentum
0.10
Positive
47.99
Neutral
24.59
Neutral
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 5.12 is below the 20-day moving average (MA) of 5.32, above the 50-day MA of 5.09, and below the 200-day MA of 5.42, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $493.57M | 60.69 | 2.79% | ― | 2.81% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $735.41M | -24.50 | -14.67% | ― | -0.08% | 73.05% | |
54 Neutral | $222.05M | ― | ― | ― | 2.91% | 94.12% | |
48 Neutral | $14.44M | -0.32 | -195.23% | ― | -12.10% | -44.14% | |
48 Neutral | $58.20M | -1.60 | -34.77% | ― | -8.31% | 36.10% | |
45 Neutral | $37.45M | -0.41 | -93.02% | ― | -21.98% | 35.39% |
* Consumer Cyclical Sector Average
LVLU
Lulu's Fashion Lounge Holdings
5.12
-11.38
-68.97%
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RENT
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Lulu's Fashion Lounge Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Lulu’s Fashion Lounge Appoints New Fractional CFO
Positive
Oct 14, 2025
On October 11, 2025, Lulu’s Fashion Lounge Holdings appointed Heidi Crane as its fractional Chief Financial Officer, effective October 13, 2025. Ms. Crane, with over 17 years of CFO experience in consumer-focused companies, will lead the financial strategy to accelerate growth and improve operational efficiencies. This strategic appointment aims to drive long-term shareholder value and position the company for sustainable growth. Crystal Landsem, the CEO, expressed enthusiasm for Ms. Crane’s extensive experience, which is expected to be instrumental in executing the company’s financial and strategic initiatives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.