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Lulu's Fashion Lounge Holdings (LVLU)
NASDAQ:LVLU
RESEARCH TOOLSreports
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Lulu's Fashion Lounge Holdings
(NASDAQ:LVLU)
Rating:38Underperform
Price Target:
$0.50
▲(85.19%Upside)
Positive Factors
Business Trends
Management noted trends in the business saw steady monthly improvement, with return rates down year-over-year for the third consecutive quarter.
Profitability Outlook
Management expects a positive inflection in profitability.
Negative Factors
Financial Performance
Q1 missed on both top and bottom-line, largely due to operational expense deleverage on the lower sales volume.
Liquidity Concerns
Liquidity remains constrained currently, although management is confident about refinancing into a new credit facility.
Lulu's Fashion Lounge Holdings (LVLU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.29M
Dividend YieldN/A
Average Volume (3M)525.46K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-11.33%
EPS Growth-183.48%
CountryUS
Employees580
SectorConsumer Cyclical
Sector Strength60
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.19
Shares Outstanding41,492,767
10 Day Avg. Volume1,386,991
30 Day Avg. Volume525,462
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)1.49
Price to Sales (P/S)0.00
P/FCF Ratio81.52
Enterprise Value/Market Cap12.86
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit1.18
Enterprise Value/Ebitda-1.11
Forecast
1Y Price Target
$1.00Price Target Upside270.37% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 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 Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -35.71%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant achievements such as strong sales in occasion dresses, improved inventory management, and successful brand campaigns, alongside operational cost efficiencies and expected positive EBITDA. However, these were offset by challenges including a revenue decline, struggles in certain product categories, profitability pressures, and the withdrawal of fiscal guidance due to external uncertainties. Despite these challenges, the company shows promising signs of operational improvement and strategic focus.Q1-2025 Updates
Positive Updates
Strong Performance in Occasion Dresses
Sales momentum remained strong in occasion dresses, particularly in the bridesmaid category, driving healthy year-over-year net sales growth.
Improved Inventory Management
Inventory management resulted in a 4% year-over-year inventory reduction, while product margins increased 100 basis points versus the prior year period.
Brand Campaign Success
Successful campaigns and partnerships increased customer engagement and brand awareness, leading to the highest brand equity score to date.
Significant Wholesale Growth
Triple-digit year-over-year growth in Q1 revenue from wholesale, driven by growth among major partners and momentum in specialty retail.
Operational Improvements
Operational improvements with a sequential increase in gross margin to 40.3% from 37.9% in Q4 2024, and a $900,000 gross margin growth quarter-over-quarter.
Cost Efficiency Gains
OpEx declined 12% year-over-year, with fixed costs down 16%, reflecting ongoing efficiencies and strengthening profitability.
Positive Adjusted EBITDA Expected
Expected return to positive adjusted EBITDA in the second quarter of 2025 following improvements in March.
Negative Updates
Decline in Net Revenue
Net revenue decreased by 17% year-over-year, driven by a decrease in total orders placed and average order value.
Challenges in Shoes and Separates
Shoes and separates businesses continued to drag on overall results, accounting for most of the year-over-year decline in net sales.
Profitability Pressure
Profitability remained pressured due to the timing of consolidation of distribution centers and related onetime costs.
Withdrawal of 2025 Guidance
Previously issued fiscal year 2025 guidance for net revenue and adjusted EBITDA was withdrawn due to heightened uncertainty related to trade policy and tariffs.
Net Loss Increase
Net loss worsened to $8 million from $5.7 million in the same period last year.
Higher Interest Expenses
Interest expense increased to $577,000 from $383,000 in Q1 2024.
Company Guidance
During Lulu's First Quarter 2025 Earnings Conference Call, the company outlined several key metrics and strategic initiatives. The call highlighted their focus on achieving a return to positive adjusted EBITDA in the coming quarter, with a significant emphasis on enhancing cash flow and reducing net debt, which decreased by $7.2 million since the end of Q4 2024. Gross margin improved to 40.3% in Q1 2025, up from 37.9% in Q4 2024, contributing to a $900,000 quarter-over-quarter gross margin growth. The company also reported a 4% year-over-year reduction in inventory levels, a 100 basis point improvement in product margins, and an increase in gross margin by 100 basis points compared to the previous year. Despite a 17% year-over-year decrease in net revenue to $64.2 million, strong performance in occasion dresses, particularly bridesmaid categories, drove positive momentum. Operating expenses were reduced by 12% year-over-year, with fixed costs declining by 16%, reflecting ongoing cost efficiencies. Additionally, Lulu's highlighted a strategic focus on product margin optimization, SKU management, and direct sourcing to mitigate risks associated with international trade policies and tariffs. They also experienced a triple-digit year-over-year growth in Q1 wholesale revenue, driven by partnerships and strong momentum in specialty retail. The call emphasized the importance of their Love Rewards loyalty program, which saw double-digit growth, and successful brand campaigns that boosted customer engagement and brand awareness. As they navigate macroeconomic uncertainties, Lulu's remains committed to strategic sourcing, pricing discipline, and vendor collaboration to support long-term growth and resilience.Lulu's Fashion Lounge Holdings Financial Statement Overview
Summary
Lulu's Fashion Lounge Holdings is facing significant financial challenges, including a decline in revenue, persistent losses, and high leverage. The income statement shows negative revenue growth and margins, while the balance sheet indicates increased financial risk due to high debt and reduced equity. Despite some operational cash flow efficiency, overall financial health is compromised.Income Statement
The income statement reveals a challenging environment for Lulu's Fashion Lounge Holdings. The company experienced a decline in total revenue from $355.2M in 2023 to $302.8M TTM (Trailing-Twelve-Months), indicating a negative revenue growth rate. Gross profit margin decreased from previous years, and significant negative EBIT and net income highlight persistent profitability issues. While EBIT and EBITDA margins remain negative, indicating operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, with equity substantially decreasing from $60.9M in 2023 to $6.6M TTM. This indicates increasing financial leverage and potential risk. The equity ratio has dropped, reflecting a weakening financial position. ROE is negative due to net losses, further highlighting the company's financial challenges.30
Negative
Cash Flow
The cash flow statement indicates moderate performance with positive operating cash flow of $3.98M TTM, but free cash flow remains limited at $1.92M. The operating cash flow to net income ratio is positive, suggesting some efficiency in converting earnings to cash flow, but the overall cash position remains constrained, limiting financial flexibility.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 302.78M | 315.89M | 355.18M | 439.65M | 375.63M | 248.66M |
| Gross Profit | 123.44M | 130.25M | 148.23M | 191.45M | 176.73M | 110.29M |
| EBITDA | -49.73M | -46.20M | -14.46M | 16.27M | 23.93M | -1.32M |
| Net Income | -57.62M | -55.29M | -19.33M | 3.73M | 2.04M | -19.30M |
Balance Sheet | ||||||
| Total Assets | 114.34M | 108.20M | 149.44M | 167.20M | 113.78M | 105.08M |
| Cash, Cash Equivalents and Short-Term Investments | 8.62M | 4.46M | 2.51M | 10.22M | 11.40M | 15.55M |
| Total Debt | 31.69M | 39.35M | 39.08M | 58.50M | 25.00M | 115.56M |
| Total Liabilities | 107.79M | 94.83M | 88.49M | 102.31M | 69.25M | 140.63M |
| Stockholders Equity | 6.55M | 13.37M | 60.95M | 64.89M | 44.52M | -35.55M |
Cash Flow | ||||||
| Free Cash Flow | 1.92M | 1.30M | 11.49M | 1.19M | 23.93M | 2.88M |
| Operating Cash Flow | 3.98M | 2.60M | 15.42M | 6.20M | 26.90M | 4.86M |
| Investing Cash Flow | -2.48M | -2.87M | -4.00M | -5.12M | -3.39M | -1.91M |
| Financing Cash Flow | 1.63M | 2.23M | -19.13M | -2.77M | -27.65M | 6.75M |
Lulu's Fashion Lounge Holdings Technical Analysis
Negative
0.27
Price Trends
0.40
Negative
0.48
Negative
0.88
Negative
Market Momentum
-0.04
Positive
34.02
Neutral
12.75
Positive
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 0.27 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.40, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 12.75 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | AU$2.83B | 27.14 | 4.84% | 5.11% | 2.60% | -31.70% | |
56 Neutral | $258.03M | 1,320.00 | 0.23% | ― | 3.01% | ― | |
56 Neutral | $86.44M | ― | -72.29% | ― | -23.63% | 41.36% | |
51 Neutral | $521.95M | ― | -27.37% | ― | -8.48% | 55.77% | |
47 Neutral | $52.16M | ― | -47.54% | ― | -8.79% | -15.17% | |
42 Neutral | $20.67M | ― | 47.49% | ― | 0.60% | 36.38% | |
38 Underperform | $11.29M | ― | -179.00% | ― | -11.33% | -183.48% |
* Consumer Cyclical Sector Average
Performance Comparison
LVLU
Lulu's Fashion Lounge Holdings
0.27
-1.50
-84.75%
TLYS
Tilly's
1.73
-3.76
-68.49%
ZUMZ
Zumiez
14.52
-6.04
-29.38%
SFIX
Stitch Fix
4.00
-0.23
-5.44%
RENT
Rent the Runway
5.14
-11.08
-68.31%
BIRD
Allbirds
10.62
0.44
4.32%
Lulu's Fashion Lounge Holdings Corporate Events
Delistings and Listing ChangesPrivate Placements and FinancingStock Split
Lulu’s Fashion Lounge Announces Reverse Stock Split
Neutral
Jun 26, 2025
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.
The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.
Delistings and Listing ChangesShareholder MeetingsStock SplitRegulatory Filings and Compliance
Lulu’s Fashion Lounge Transfers to Nasdaq Capital Market
Negative
Jun 12, 2025
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.
The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.
Executive/Board Changes
Lulu’s Fashion Lounge CFO Resigns, Interim Appointed
Neutral
Jun 4, 2025
On May 30, 2025, Tiffany R. Smith announced her resignation as Chief Financial Officer of Lulu’s Fashion Lounge Holdings, effective June 30, 2025, due to personal reasons. She will continue in an advisory role until the company’s quarterly report filing for June 29, 2025. Crystal Landsem, the current CEO, will serve as Interim CFO while a search for a permanent successor is conducted. This transition is not due to any disagreements related to the company’s financial practices, and the company aims to ensure a smooth transition of responsibilities.
The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.
Delistings and Listing Changes
Lulu’s Fashion Applies for Nasdaq Capital Market Transfer
Negative
May 28, 2025
On May 21, 2025, Lulu’s Fashion Lounge Holdings, Inc. was notified by Nasdaq that it was not in compliance with the minimum stockholders’ equity requirement of $10 million for continued listing on the Nasdaq Global Market. The company’s equity was reported at approximately $6.6 million as of March 30, 2025. To address this, the company applied on May 27, 2025, to transfer its securities to the Nasdaq Capital Market, which has a lower equity requirement of $2.5 million, and this application is currently under review.
The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.
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.