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

• Market Cap: $13.77M
• Dividend Yield: N/A
• Average Volume (3M): 128.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -10.68%
• EPS Growth: -74.47%
• Country: US
• Employees: 580
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -1.08
• Shares Outstanding: 2,748,930
• 10 Day Avg. Volume: 49,473
• 30 Day Avg. Volume: 128,794
• PEG Ratio: -1.07
• Price to Book (P/B): 781.73
• Price to Sales (P/S): 33.08
• P/FCF Ratio: 8.03K
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $5.50 ▲(7.42% Upside)

Lulu's Fashion Lounge Holdings faces significant financial challenges, with declining revenue and high leverage being the most impactful factors. While the earnings call provided some positive insights, such as improved EBITDA and cost reductions, the overall financial health remains weak. Technical indicators show short-term momentum, but valuation metrics are unattractive due to ongoing losses.

Positive Factors

Product Margin Improvement

Sustained improvement in product margins indicates better cost management and pricing strategies, enhancing profitability over the long term.

Operational Expense Reduction

Reducing operational expenses strengthens financial health and allows for reinvestment in growth initiatives, supporting long-term sustainability.

New CFO Appointment

The appointment of an experienced CFO can drive strategic financial improvements, enhancing operational efficiency and long-term shareholder value.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in market demand and competitive positioning, potentially impacting long-term growth prospects.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities.

Weak Cash Flow Performance

Weak cash flow performance raises concerns about liquidity and operational sustainability, limiting the company's ability to fund future growth.

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

Lulu's Fashion Lounge Holdings is experiencing financial difficulties, characterized by declining revenue, high leverage, and weak cash flow performance. The company needs to address operational inefficiencies and improve its financial stability to enhance profitability and reduce financial risk.

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 2020	Dec 2019	Dec 2018
Income Statement
Total Revenue	292.34M	315.89M	355.18M	248.66M	369.62M	297.11M
Gross Profit	118.49M	130.25M	148.23M	110.29M	161.20M	132.30M
EBITDA	-49.53M	-46.20M	-14.46M	-1.32M	18.22M	21.19M
Net Income	-49.70M	-55.29M	-19.33M	-19.30M	-469.00K	1.00M
Balance Sheet
Total Assets	100.96M	108.20M	149.44M	105.08M	110.52M	103.68M
Cash, Cash Equivalents and Short-Term Investments	1.53M	4.46M	2.51M	15.55M	5.86M	7.75M
Total Debt	25.23M	39.35M	39.08M	115.56M	110.78M	118.33M
Total Liabilities	96.71M	94.83M	88.49M	140.63M	151.76M	146.49M
Stockholders Equity	4.25M	13.37M	60.95M	-35.55M	-41.24M	-42.81M
Cash Flow
Free Cash Flow	-7.09M	1.30M	11.49M	2.88M	7.83M	7.84M
Operating Cash Flow	-6.66M	2.60M	15.42M	4.86M	11.87M	9.47M
Investing Cash Flow	-2.30M	-2.87M	-4.00M	-1.91M	-4.04M	-3.49M
Financing Cash Flow	3.13M	2.23M	-19.13M	6.75M	-9.72M	-3.87M

Lulu's Fashion Lounge Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.12
• 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 5.12 is above the 20-day moving average (MA) of 5.05, above the 50-day MA of 4.68, and below the 200-day MA of 6.65, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 75.28 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	―	$381.67M	―	0.19%	―	1.64%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFIX	―	$565.95M	―	-14.79%	―	-5.26%	79.25%
BIRD	―	$58.25M	―	-78.23%	―	-22.48%	39.73%
LVLU	―	$13.77M	-0.28	-187.85%	―	-10.68%	-74.47%
TLYS	―	$46.93M	―	-43.51%	―	-11.10%	-10.31%
RENT	―	$29.09M	―	―	―	0.20%	18.30%

Lulu's Fashion Lounge Holdings Corporate Events

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.

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.

The most recent analyst rating on (LVLU) stock is a Hold with a $30.00 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 Reports Q2 2025 Results

Lulu’s Fashion Lounge Holdings, Inc. is a California-based fashion brand specializing in women’s luxury apparel at accessible prices, focusing on modern and feminine designs for various occasions. In its second quarter of 2025, Lulu’s reported a decrease in net revenue to $81.5 million, down 11% from the previous year, primarily due to a decline in total orders placed, despite a slight increase in average order value. The company saw a reduction in active customers and gross profit, but managed to narrow its net loss to $3.0 million from $10.8 million the previous year.