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

• Market Cap: $12.37M
• Dividend Yield: N/A
• Average Volume (3M): 128.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• 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: 2,748,930
• 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: 8.10K
• Enterprise Value/Market Cap: 2.92
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: -0.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $5.50 ▲(5.16% Upside)

Lulu's Fashion Lounge Holdings faces significant financial challenges, including declining revenues and high leverage, which are the most impactful factors on the stock score. While there are improvements in operational efficiency and gross margins, the ongoing financial difficulties and negative valuation metrics weigh heavily on the overall score.

Positive Factors

Operational Efficiency

Improved operational efficiency and cost reduction enhance profitability, allowing for better resource allocation and competitive positioning.

Gross Margin Improvement

Higher gross margins indicate better cost management and pricing power, contributing to sustainable profitability and financial health.

Wholesale Growth

Expansion in wholesale channels diversifies revenue streams and enhances market reach, supporting long-term growth potential.

Negative Factors

Declining Revenue

A decline in revenue reflects challenges in maintaining sales momentum, potentially impacting future growth and market share.

High Leverage

High leverage limits financial flexibility, increasing risk during economic downturns and potentially affecting long-term solvency.

Negative Free Cash Flow

Negative free cash flow indicates cash generation issues, which can hinder investment in growth initiatives and debt servicing.

Lulu's Fashion Lounge Holdings Business Overview & Revenue Model

Company Description

Lulu's Fashion Lounge Holdings (LVLU) is a contemporary women's fashion retailer that specializes in offering a wide range of stylish apparel, accessories, and footwear. The company primarily operates online, catering to the fashion-forward consumer demographic by providing trendy, affordable clothing options. Lulu's is known for its curated collections that include dresses, tops, bottoms, and seasonal wear, along with a selection of accessories that complement its clothing lines. The brand emphasizes a strong online presence, utilizing digital marketing strategies to reach and engage its target customers effectively.

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

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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 5.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 5.23 is above the 20-day moving average (MA) of 4.98, above the 50-day MA of 4.94, and below the 200-day MA of 5.93, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 48.49 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	65 Neutral	$402.59M	―	0.19%	―	1.64%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFIX	55 Neutral	$561.93M	―	-14.79%	―	-5.26%	79.25%
LVLU	46 Neutral	$12.37M	-0.25	-195.23%	―	-12.10%	-44.14%
TLYS	45 Neutral	$38.09M	―	-43.51%	―	-11.10%	-10.31%
RENT	43 Neutral	$32.54M	―	―	―	0.20%	18.30%
BIRD	39 Underperform	$67.53M	―	-93.02%	―	-21.98%	35.39%

Lulu's Fashion Lounge Holdings Corporate Events

Lulu’s Fashion Lounge Earnings Call: Mixed Results with Strategic Moves

Lulu’s Fashion Lounge Holdings, Inc. recently held an earnings call that painted a mixed picture of its financial health. The call highlighted significant improvements in operational efficiency, gross margins, and strategic initiatives, particularly in special occasion categories and wholesale growth. However, the company also faces challenges, including a decline in net revenue, underperformance in casual wear and footwear, and a decrease in active customer counts. The company is actively addressing these issues through strategic realignment.

Lulu’s Fashion Lounge Shows Financial Improvement in Q3 2025

Lulu’s Fashion Lounge Holdings, Inc., a California-based fashion brand, specializes in providing attainable luxury women’s clothing for various occasions. In its third-quarter 2025 earnings report, Lulu’s highlighted a significant improvement in its financial performance, including a reduction in net loss by $4.6 million compared to the previous year and achieving a second consecutive quarter of positive adjusted EBITDA. Key financial metrics revealed a gross profit increase of 2% and a gross margin rise of 450 basis points to 42.6%, despite a 9% decline in net revenue due to a decrease in total orders placed. The company reported a net loss of $2.3 million, a substantial improvement from the $6.9 million loss in the same period last year, and an adjusted EBITDA of $0.4 million compared to a negative $3.6 million previously. Looking forward, Lulu’s management remains optimistic about further improvements in adjusted EBITDA in the fourth quarter of 2025, driven by strategic priorities such as assortment optimization and cost efficiency, positioning the company for sustainable long-term growth.

Lulu’s Fashion Lounge Appoints New Fractional CFO

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.

The most recent analyst rating on (LVLU) stock is a Hold with a $5.00 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 Q2 Earnings Call Highlights

Lulu’s Fashion Lounge Holdings, Inc. recently held its earnings call, revealing a generally positive sentiment despite facing some challenges. The company celebrated significant achievements, such as the strongest Q2 performance in its special occasion categories, a return to positive adjusted EBITDA, and successful brand engagement efforts. However, these successes were tempered by a decline in net revenue, underperformance in shoes and separates, and increased interest expenses. Overall, the sentiment was more positive due to strategic and financial improvements highlighted during the call.