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Lulu's Fashion Lounge Holdings
(NASDAQ:LVLU)
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Rating:57Neutral
Price Target:
$17.50
▼(-7.06% Downside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by weak financial performance (ongoing revenue declines, losses, negative equity, and negative TTM cash flow), despite operational improvement signals. Strong technical strength (price well above key moving averages) and a constructive earnings outlook (expected return to positive adjusted EBITDA) provide meaningful support, while valuation remains constrained by negative earnings and no dividend support in the provided data.
Positive Factors
Gross Margin Recovery
Sustained gross margin recovery to the low‑mid 40s reflects structural improvements in product mix and lower outbound shipping costs. Higher baseline margins improve operating leverage, reduce reliance on promotions, and provide a more durable cushion to fund SG&A and reinvestment as revenue normalizes.
Negative Factors
Persistent Revenue Declines
Multi‑year top‑line contraction signals durable demand and/or competitive challenges. Shrinking revenue undermines scale economics, limits reinvestment capacity, and makes margin gains harder to sustain. Long‑term recovery requires consistent assortment and customer growth, not just short‑term cost cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Recovery
Sustained gross margin recovery to the low‑mid 40s reflects structural improvements in product mix and lower outbound shipping costs. Higher baseline margins improve operating leverage, reduce reliance on promotions, and provide a more durable cushion to fund SG&A and reinvestment as revenue normalizes.
Read all positive factors
Lulu's Fashion Lounge Holdings (LVLU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.59M
Dividend YieldN/A
Average Volume (3M)128.79K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth-8.96%
EPS Growth83.08%
CountryUS
Employees529
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-3.50
Shares Outstanding2,864,702
10 Day Avg. Volume49,473
30 Day Avg. Volume128,794
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)5.02
Price to Sales (P/S)0.05
P/FCF Ratio14.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.75
Revenue Forecast (FY)$292.39M
Lulu's Fashion Lounge Holdings Business Overview & Revenue Model
Company Description
Lulu's Fashion Lounge Holdings, Inc. operates as an online retailer of women’s apparel, footwear, and accessories in the United State. It offers formals, casuals, prom, dresses, wedding guest dresses, tops, bottoms, clothing, spring dress, graduat...
How the Company Makes Money
Lulu’s makes money primarily by selling products directly to consumers through its online channels (direct-to-consumer e-commerce). Revenue is generated when customers purchase merchandise such as women’s dresses, other apparel, and accessories; t...
Lulu's Fashion Lounge Holdings Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveys cautious optimism: the company reported meaningful margin expansion, rapid wholesale growth, sizable inventory reductions, improved assortment productivity, and notable cost and balance sheet improvements — all signaling progress on a deliberate reset. However, net revenue and orders were down, Q1 profitability remained negative, casual apparel and footwear were intentionally de-emphasized causing short-term top-line pressure, and external uncertainties (tariffs, freight, consumer sensitivity) present execution risks. Management expects a return to positive adjusted EBITDA in Q2 and full-year improvement contingent on H2 assortment normalization and continued wholesale momentum.Positive Updates
Gross Margin Expansion
Gross margin expanded to 45.1% in Q1 2026, an increase of 480 basis points year-over-year — the highest Q1 gross margin since 2022, driven by a shift to higher-margin categories and improved outbound shipping costs.
Negative Updates
Net Revenue and Order Decline
Net revenue for Q1 was $57.5M, down 10% year-over-year, driven by a 15% decline in total orders placed despite a 4% increase in average order value.
Read all updates
Q1-2026 Updates
Positive
Negative
Gross Margin Expansion
Gross margin expanded to 45.1% in Q1 2026, an increase of 480 basis points year-over-year — the highest Q1 gross margin since 2022, driven by a shift to higher-margin categories and improved outbound shipping costs.
Read all positive updates
Company Guidance
Management guided to a return to positive adjusted EBITDA in Q2 2026 and for the full year (an inflection to positive versus a negative $1.2 million adjusted EBITDA in 2025), with Q2 expected to outperform the same period last year and the net revenue growth trend to improve year‑over‑year versus the 11% decline in 2025; they expect capital expenditures of $2.0–$2.5 million (including capitalized software), total active customers to stabilize in H2 2026 as casual apparel and footwear newness normalizes and returns to growth in Q3–Q4, and improving return rates and order economics as those categories scale—guidance assumes disciplined inventory and cost control (context: Q1 gross margin 45.1%, up 480 bps YoY; Q1 adjusted EBITDA loss $1.5M vs. $4.7M prior year; Q1 inventory $33.1M, down 17% YoY; net debt $5.9M) and does not assume potential tariff refunds.Lulu's Fashion Lounge Holdings Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 275.66M | 282.28M | 315.89M | 355.18M | 439.65M | 375.63M |
| Gross Profit | 122.16M | 122.05M | 130.25M | 148.23M | 191.45M | 176.73M |
| EBITDA | -2.12M | -5.95M | -46.20M | -14.46M | 16.27M | 23.93M |
| Net Income | -9.43M | -13.34M | -55.29M | -19.33M | 3.73M | 2.04M |
Balance Sheet | ||||||
| Total Assets | 100.48M | 89.36M | 108.20M | 149.44M | 167.20M | 113.78M |
| Cash, Cash Equivalents and Short-Term Investments | 7.44M | 2.66M | 4.46M | 2.51M | 10.22M | 11.40M |
| Total Debt | 29.53M | 31.18M | 39.35M | 39.08M | 58.50M | 25.00M |
| Total Liabilities | 101.01M | 86.35M | 94.83M | 88.49M | 102.31M | 69.25M |
| Stockholders Equity | -525.00K | 3.01M | 13.37M | 60.95M | 64.89M | 44.52M |
Cash Flow | ||||||
| Free Cash Flow | -1.04M | 1.03M | -273.00K | 13.54M | 1.19M | 23.93M |
| Operating Cash Flow | -43.00K | 1.38M | 2.60M | 15.42M | 6.20M | 26.90M |
| Investing Cash Flow | -1.96M | -2.13M | -2.87M | -4.00M | -5.12M | -3.39M |
| Financing Cash Flow | 830.00K | -1.05M | 2.23M | -19.13M | -2.77M | -27.65M |
Lulu's Fashion Lounge Holdings Technical Analysis
Positive
18.83
Price Trends
10.59
Positive
10.89
Positive
10.27
Positive
Market Momentum
2.40
Negative
71.83
Negative
49.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVLU, the sentiment is Positive. The current price of 18.83 is above the 20-day moving average (MA) of 14.00, above the 50-day MA of 10.59, and above the 200-day MA of 10.27, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 49.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $536.37M | -27.94 | -9.35% | ― | 4.66% | 68.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $46.59M | -10.27 | -407.26% | ― | -8.96% | 83.08% | |
55 Neutral | $331.88M | 21.62 | 4.73% | ― | 4.68% | 3252.79% | |
49 Neutral | $116.16M | -38.48 | -3.98% | ― | 1.69% | 93.35% | |
48 Neutral | $121.08M | 0.55 | -33.43% | ― | 16.39% | ― | |
46 Neutral | $19.55M | -0.24 | -173.54% | ― | -21.84% | 17.71% |
* Consumer Cyclical Sector Average
LVLU
Lulu's Fashion Lounge Holdings
18.70
14.82
381.96%
TLYS
Tilly's
3.97
2.31
139.16%
ZUMZ
Zumiez
20.47
6.46
46.11%
SFIX
Stitch Fix
4.14
-0.48
-10.39%
RENT
Rent the Runway
3.76
-0.10
-2.47%
BIRD
Allbirds
2.25
-7.23
-76.27%
Lulu's Fashion Lounge Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lulu’s Fashion Lounge Amends Revolving Credit Facility Terms
Positive
Jul 31, 2026
On July 27, 2026, Lulu’s Fashion Lounge Holdings, Inc. executed a second amendment to its Loan and Security Agreement with White Oak Commercial Finance and other lenders, modifying how and when increased inventory amounts can be included in ...
Business Operations and Strategy
Lulus Forms Special Committee to Explore Strategic Alternatives
Neutral
Jul 15, 2026
On July 13, 2026, Lulu’s Fashion Lounge Holdings, Inc. announced that its board had established a special committee of independent directors to review strategic alternatives aimed at maximizing shareholder value. The potential paths under co...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Lulu’s Shareholders Back Governance Changes at Annual Meeting
Positive
Jun 10, 2026
On June 9, 2026, Lulu’s Fashion Lounge Holdings, Inc. held its annual meeting of stockholders, with about 95% of outstanding common shares represented, and shareholders elected Anisa Kumar and Crystal Landsem as Class II directors to serve u...
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.