Lulu's Fashion Lounge Holdings (LVLU) AI Stock Analysis

• Market Cap: $43.63M
• Dividend Yield: N/A
• Average Volume (3M): 128.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -12.10%
• EPS Growth: -44.14%
• Country: US
• Employees: 580
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.84
• Shares Outstanding: 2,771,846
• 10 Day Avg. Volume: 49,473
• 30 Day Avg. Volume: 128,794
• PEG Ratio: -1.08
• Price to Book (P/B): 788.71
• Price to Sales (P/S): 33.38
• P/FCF Ratio: -38.62K
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: -1.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -3.75
• Revenue Forecast (FY): $292.39M

• Rating: 55 Neutral
• Price Target: $17.50 ▲(177.78% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak financial performance (declining revenue, losses, high leverage, and cash flow challenges). This is partially offset by strong technical momentum and an earnings call that emphasized meaningful margin and cost improvements with expectations for continued adjusted EBITDA improvement, though top-line and customer trends remain a key risk.

Positive Factors

Gross margin expansion

A 450bp expansion to a 42.6% gross margin reflects a shift to higher‑margin product mix and fewer markdowns. Sustained gross margin improvement materially supports long‑term profitability, enabling reinvestment and cushioning revenue swings without relying solely on cost cuts.

Positive adjusted EBITDA

Turning adjusted EBITDA positive shows operating leverage and the effectiveness of cost reductions (OpEx down 11%, fixed costs down 18%). A structurally leaner cost base improves break‑even economics and increases resilience while management scales profitable growth initiatives.

Wholesale channel growth

Rapid wholesale expansion diversifies revenue beyond direct‑to‑consumer, opening scale opportunities and reducing reliance on online order volumes. Securing multiple retail partners can stabilize demand, improve inventory turns, and support higher margin avenues over the medium term.

Negative Factors

Declining revenue and orders

Sustained top‑line declines and falling order counts signal weakening customer acquisition or retention, impairing scale economics. Over time this pressures unit economics, necessitates higher marketing spend to restore active customers, and can undercut margin gains if volume doesn't recover.

High financial leverage

Very high leverage constrains strategic flexibility, increases interest and refinancing risk, and limits capacity to invest in inventory, marketing, or product development. In a weaker revenue environment, leverage elevates solvency risk and reduces ability to absorb shocks.

Negative free cash flow trend

Material negative FCF and deteriorating FCF growth limit the company’s ability to self‑fund operations, capex, or strategic initiatives. Continued cash burn increases reliance on external financing, which is costly given leverage, and can force suboptimal decisions on inventory and marketing.

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 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 Money

Lulu'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 Financial Statement Overview

Summary

Financials remain pressured: declining TTM revenue (-2.37%), negative profitability (net and EBIT margins), high leverage (debt-to-equity 5.93), and weak free cash flow trend (FCF growth -224.60%). While there are some cash generation offsets versus net losses (positive FCF to net income ratio), overall balance sheet risk and profitability challenges keep the score low.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	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

• Technical Analysis Sentiment: Positive
• Last Price: 6.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 6.3 is below the 20-day moving average (MA) of 16.13, below the 50-day MA of 12.55, and below the 200-day MA of 6.87, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZUMZ	62 Neutral	$425.60M	54.26	2.79%	―	2.81%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LVLU	55 Neutral	$43.63M	-0.96	-195.23%	―	-12.10%	-44.14%
SFIX	49 Neutral	$429.44M	-15.13	-14.67%	―	-0.08%	73.05%
TLYS	48 Neutral	$42.05M	-1.25	-34.77%	―	-8.31%	36.10%
RENT	45 Neutral	$214.70M	-5.19	―	―	2.91%	94.12%
BIRD	45 Neutral	$22.34M	-0.27	-93.02%	―	-21.98%	35.39%

Lulu's Fashion Lounge Holdings Corporate Events

Lulus Names Heidi Crane Permanent Chief Financial Officer

On February 3, 2026, Lulu’s Fashion Lounge Holdings appointed veteran finance executive Heidi Crane as its permanent Chief Financial Officer, effective February 4, 2026, following her tenure as fractional CFO since October 2025. The move formalizes Crane’s role as principal financial and accounting officer under a new employment agreement that runs initially through January 31, 2027, with a base salary of $425,000, performance-based bonus eligibility, and a time-vested RSU package designed to align her interests with shareholders, alongside severance protections, restrictive covenants, and potential clawbacks, underscoring Lulus’ focus on financial discipline and experienced leadership as it scales its direct-to-consumer fashion business.

The most recent analyst rating on (LVLU) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.

Lulu’s Fashion Lounge Extends Engagement of Fractional CFO

On January 22, 2026, Lulu’s Fashion Lounge Holdings, Inc. amended its consulting arrangement with Business Talent Group, LLC to extend the engagement of Heidi Crane as the company’s fractional Chief Financial Officer. Under the amendment, Crane, who remains employed by BTG, will continue providing CFO services from January 23, 2026 until the completion of Milestone 2, expected around February 23, 2026, with the option for further extension by mutual agreement, and Lulu’s will pay BTG $63,000 for her services during this period, signaling the company’s decision to maintain interim financial leadership through a fractional CFO structure.

The most recent analyst rating on (LVLU) stock is a Sell with a $19.50 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.