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

• Market Cap: $11.02M
• Dividend Yield: N/A
• Average Volume (3M): 84.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -10.68%
• EPS Growth: -74.47%
• Country: US
• Employees: 580
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Retail
• EPS (TTM): -1.08
• Shares Outstanding: 2,748,930
• 10 Day Avg. Volume: 39,196
• 30 Day Avg. Volume: 84,711
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.27
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: $4.00
• Price Target Upside: -0.50% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $4.00 ▼(-0.50% Downside)

Lulu's Fashion Lounge Holdings faces significant financial challenges, with declining revenue and high leverage being the most critical factors. While there are some positive developments in earnings and corporate events, the overall financial instability and negative valuation metrics weigh heavily on the stock's outlook.

Positive Factors

Business Improvement

Management noted trends in the business saw steady monthly improvement in Q1, which has continued into Q2, while return rates were down YoY for the third consecutive quarter.

Profitability Outlook

Management expects a positive inflection in profitability in Q2.

Negative Factors

Earnings Performance

Q1 missed on both top and bottom-line, largely due to opex deleverage on the lower sales volume despite cost reduction efforts driving a ~12% decrease in total opex, while gross margin contracted more than expected as well.

Liquidity Concerns

Liquidity remains constrained currently, but management remains confident it will be able to refi into a new credit facility towards the end of Q2.

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 direct sales of its fashion products via its online platform. The company's revenue model is based on retailing a diverse array of women's fashion items including dresses, tops, bottoms, shoes, and accessories. Key revenue streams include sales from its e-commerce website and mobile app, where customers can browse and purchase products. Lulu's may also generate additional income through collaborations with influencers and promotional partnerships that help drive traffic and sales to their platform. The company's focus on digital marketing strategies and maintaining a strong online presence further contribute to its earnings by attracting and retaining a large customer base.

Lulu's Fashion Lounge Holdings Financial Statement Overview

Summary

Lulu's Fashion Lounge Holdings is experiencing significant financial difficulties, with declining revenue, high leverage, and weak cash flow performance. The negative revenue growth and net profit margin, coupled with high debt levels and negative cash flow metrics, highlight substantial financial instability.

Income Statement

Lulu's Fashion Lounge Holdings has faced declining revenue and profitability over recent periods. The TTM data shows a negative revenue growth rate of -3.45% and a net profit margin of -17.00%, indicating significant challenges in maintaining profitability. The gross profit margin remains moderate at 40.53%, but the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The company's balance sheet reveals high leverage with a debt-to-equity ratio of 5.93 in the TTM period, indicating significant reliance on debt financing. The return on equity is negative, reflecting ongoing losses. The equity ratio is low, suggesting limited financial stability and potential risks if the company cannot improve its equity base.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth, with a TTM decrease of -469.24%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. While the free cash flow to net income ratio is slightly positive, overall cash flow performance is weak, raising concerns about liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	292.34M	315.89M	355.18M	439.65M	375.63M	248.66M
Gross Profit	118.49M	130.25M	148.23M	191.45M	176.73M	110.29M
EBITDA	-49.53M	-46.20M	-14.46M	16.27M	23.93M	-1.32M
Net Income	-49.70M	-55.29M	-19.33M	3.73M	2.04M	-19.30M
Balance Sheet
Total Assets	100.96M	108.20M	149.44M	167.20M	113.78M	105.08M
Cash, Cash Equivalents and Short-Term Investments	1.53M	4.46M	2.51M	10.22M	11.40M	15.55M
Total Debt	25.23M	39.35M	39.08M	58.50M	25.00M	115.56M
Total Liabilities	96.71M	94.83M	88.49M	102.31M	69.25M	140.63M
Stockholders Equity	4.25M	13.37M	60.95M	64.89M	44.52M	-35.55M
Cash Flow
Free Cash Flow	-7.09M	1.30M	11.49M	1.19M	23.93M	2.88M
Operating Cash Flow	-6.66M	2.60M	15.42M	6.20M	26.90M	4.86M
Investing Cash Flow	-2.30M	-2.87M	-4.00M	-5.12M	-3.39M	-1.91M
Financing Cash Flow	3.13M	2.23M	-19.13M	-2.77M	-27.65M	6.75M

Lulu's Fashion Lounge Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.02
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 4.02 is below the 20-day moving average (MA) of 4.05, below the 50-day MA of 4.13, and below the 200-day MA of 8.92, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	64 Neutral	$365.54M	1,677.27	0.19%	―	1.64%	―
Sector *	61 Neutral	$18.02B	12.77	-0.75%	3.01%	1.30%	-13.03%
SFIX	55 Neutral	$743.77M	―	-27.37%	―	-8.48%	55.77%
TLYS	54 Neutral	$57.90M	―	-43.51%	―	-11.10%	-10.31%
RENT	48 Neutral	$24.83M	―	47.49%	―	0.60%	36.38%
BIRD	45 Neutral	$51.00M	―	-78.23%	―	-22.48%	39.73%
LVLU	42 Neutral	$11.02M	―	-187.85%	―	-10.68%	-74.47%

Lulu's Fashion Lounge Holdings Corporate Events

Lulu’s Fashion Lounge Secures New $20M Credit Facility

On August 14, 2025, Lulu’s Fashion Lounge Holdings entered into a new Loan and Security Agreement with White Oak Commercial Finance, LLC, establishing a $20 million asset-based revolving credit facility. This agreement, which matures in 2028, strengthens the company’s liquidity and provides financial flexibility to pursue strategic priorities. The initial funding was used to repay $6 million of outstanding debt under a previous agreement with Bank of America, which has now been terminated.

Lulu’s Fashion Regains Nasdaq Compliance

On July 21, 2025, Lulu’s Fashion Lounge Holdings, Inc. announced that it had regained compliance with the Nasdaq Capital Market’s minimum bid price requirement, following a previous notification in February 2025 about non-compliance. The company achieved the necessary bid price of $1.00 per share for 10 consecutive business days by July 18, 2025, thus closing the matter.

Lulu’s Fashion Lounge Announces Reverse Stock Split

On June 23, 2025, Lulu’s Fashion Lounge Holdings entered into a Forbearance Agreement with Bank of America and other lenders, providing the company additional time to pursue debt refinancing options after failing to meet certain refinancing milestones. Additionally, on June 26, 2025, the company announced a 1-for-15 reverse stock split effective July 3, 2025, to comply with Nasdaq’s minimum bid price requirement, reducing outstanding shares from approximately 41.5 million to 2.77 million, while maintaining the authorized shares at 250 million.

Lulu’s Fashion Lounge Transfers to Nasdaq Capital Market

On June 6, 2025, Lulu’s Fashion Lounge Holdings received approval to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, effective June 10, 2025, due to non-compliance with the $10 million stockholders’ equity requirement. The company plans a 1-for-15 reverse stock split to address a minimum bid price deficiency, with trading on a split-adjusted basis expected to begin on June 30, 2025. At the annual meeting on June 10, 2025, stockholders approved the reverse stock split and elected three directors, while also ratifying the appointment of Deloitte & Touche LLP as the independent auditor.