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Lulu's Fashion Lounge Holdings
(NASDAQ:LVLU)
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Rating:51Neutral
Price Target:
$9.50
▲(50.79% Upside)
Action:Reiterated
Date:07/15/26
LVLU scores in the low-50s primarily due to weak financial performance (multi-year revenue declines, ongoing losses, negative equity, and recently negative TTM free cash flow), partly offset by improving operating trends and a cautiously positive earnings outlook. Technicals provide moderate support (above short-term moving averages with positive MACD), while valuation is constrained by a negative P/E and no dividend yield data.
Positive Factors
Gross margin recovery
A structurally higher gross margin driven by a shift to higher‑margin categories and improved outbound shipping costs materially raises the earnings floor. Sustained mid‑40s gross margins improve the company’s ability to absorb fixed costs, support operating leverage, and accelerate a durable path to profitability even if top‑line growth is gradual.
Negative Factors
Multi‑year revenue decline
Consistent multi‑year top‑line contraction signals structural demand or competitive pressure. Even with margin recovery, shrinking revenue undermines scale, increases per‑unit fixed costs, and constrains the company’s ability to invest in growth initiatives or marketing, making durable profitability harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin recovery
A structurally higher gross margin driven by a shift to higher‑margin categories and improved outbound shipping costs materially raises the earnings floor. Sustained mid‑40s gross margins improve the company’s ability to absorb fixed costs, support operating leverage, and accelerate a durable path to profitability even if top‑line growth is gradual.
Read all positive factors
Lulu's Fashion Lounge Holdings (LVLU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.83M
Dividend YieldN/A
Average Volume (3M)128.79K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth-8.96%
EPS Growth83.08%
CountryUS
Employees529
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.58
Shares Outstanding2,864,702
10 Day Avg. Volume49,473
30 Day Avg. Volume128,794
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)5.03K
Price to Sales (P/S)53.66
P/FCF Ratio14.72K
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.24
Enterprise Value/Ebitda-13.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.75
Revenue Forecast (FY)$292.39M
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 apparel, footwear, and accessories in the United State. It offers formals, casuals, prom, dresses, wedding guest dresses, tops, bottoms, clothing, spring dress, graduat...
How the Company Makes Money
Lulu’s primarily makes money by selling merchandise directly to consumers, with revenue recognized from product sales through its e-commerce platform (its core channel) and, where applicable, company-operated retail stores. Key revenue streams inc...
Lulu's Fashion Lounge Holdings Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveys cautious optimism: the company reported meaningful margin expansion, rapid wholesale growth, sizable inventory reductions, improved assortment productivity, and notable cost and balance sheet improvements — all signaling progress on a deliberate reset. However, net revenue and orders were down, Q1 profitability remained negative, casual apparel and footwear were intentionally de-emphasized causing short-term top-line pressure, and external uncertainties (tariffs, freight, consumer sensitivity) present execution risks. Management expects a return to positive adjusted EBITDA in Q2 and full-year improvement contingent on H2 assortment normalization and continued wholesale momentum.Positive Updates
Gross Margin Expansion
Gross margin expanded to 45.1% in Q1 2026, an increase of 480 basis points year-over-year — the highest Q1 gross margin since 2022, driven by a shift to higher-margin categories and improved outbound shipping costs.
Negative Updates
Net Revenue and Order Decline
Net revenue for Q1 was $57.5M, down 10% year-over-year, driven by a 15% decline in total orders placed despite a 4% increase in average order value.
Read all updates
Q1-2026 Updates
Positive
Negative
Gross Margin Expansion
Gross margin expanded to 45.1% in Q1 2026, an increase of 480 basis points year-over-year — the highest Q1 gross margin since 2022, driven by a shift to higher-margin categories and improved outbound shipping costs.
Read all positive updates
Company Guidance
Management guided to a return to positive adjusted EBITDA in Q2 2026 and for the full year (an inflection to positive versus a negative $1.2 million adjusted EBITDA in 2025), with Q2 expected to outperform the same period last year and the net revenue growth trend to improve year‑over‑year versus the 11% decline in 2025; they expect capital expenditures of $2.0–$2.5 million (including capitalized software), total active customers to stabilize in H2 2026 as casual apparel and footwear newness normalizes and returns to growth in Q3–Q4, and improving return rates and order economics as those categories scale—guidance assumes disciplined inventory and cost control (context: Q1 gross margin 45.1%, up 480 bps YoY; Q1 adjusted EBITDA loss $1.5M vs. $4.7M prior year; Q1 inventory $33.1M, down 17% YoY; net debt $5.9M) and does not assume potential tariff refunds.Lulu's Fashion Lounge Holdings Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 275.66M | 282.28M | 315.89M | 355.18M | 439.65M | 375.63M |
| Gross Profit | 122.16M | 122.05M | 130.25M | 148.23M | 191.45M | 176.73M |
| EBITDA | -2.12M | -5.95M | -46.20M | -14.46M | 16.27M | 23.93M |
| Net Income | -9.43M | -13.34M | -55.29M | -19.33M | 3.73M | 2.04M |
Balance Sheet | ||||||
| Total Assets | 100.48M | 89.36M | 108.20M | 149.44M | 167.20M | 113.78M |
| Cash, Cash Equivalents and Short-Term Investments | 7.44M | 2.66M | 4.46M | 2.51M | 10.22M | 11.40M |
| Total Debt | 29.53M | 31.18M | 39.35M | 39.08M | 58.50M | 25.00M |
| Total Liabilities | 101.01M | 86.35M | 94.83M | 88.49M | 102.31M | 69.25M |
| Stockholders Equity | -525.00K | 3.01M | 13.37M | 60.95M | 64.89M | 44.52M |
Cash Flow | ||||||
| Free Cash Flow | -1.04M | 1.03M | -273.00K | 13.54M | 1.19M | 23.93M |
| Operating Cash Flow | -43.00K | 1.38M | 2.60M | 15.42M | 6.20M | 26.90M |
| Investing Cash Flow | -1.96M | -2.13M | -2.87M | -4.00M | -5.12M | -3.39M |
| Financing Cash Flow | 830.00K | -1.05M | 2.23M | -19.13M | -2.77M | -27.65M |
Lulu's Fashion Lounge Holdings Technical Analysis
Positive
6.30
Price Trends
8.78
Positive
10.70
Negative
9.49
Negative
Market Momentum
0.05
Negative
60.92
Neutral
63.29
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 8.09, below the 50-day MA of 8.78, and below the 200-day MA of 9.49, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 63.29 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $483.00M | -25.85 | -9.35% | ― | 4.66% | 68.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $125.61M | -42.42 | -3.98% | ― | 1.69% | 93.35% | |
55 Neutral | $306.57M | 19.92 | 4.73% | ― | 4.68% | 3252.79% | |
51 Neutral | $23.83M | -5.87 | -326.53% | ― | -8.96% | 83.08% | |
46 Neutral | $26.45M | -0.32 | -173.54% | ― | -21.84% | 17.71% | |
44 Neutral | $112.18M | 0.50 | -33.43% | ― | 16.39% | ― |
* Consumer Cyclical Sector Average
LVLU
Lulu's Fashion Lounge Holdings
9.29
4.59
97.66%
TLYS
Tilly's
4.20
2.83
206.57%
ZUMZ
Zumiez
18.13
4.80
36.01%
SFIX
Stitch Fix
3.72
-0.49
-11.74%
RENT
Rent the Runway
3.24
-1.15
-26.20%
BIRD
Allbirds
2.95
-8.62
-74.50%
Lulu's Fashion Lounge Holdings Corporate Events
Business Operations and Strategy
Lulus Forms Special Committee to Explore Strategic Alternatives
Neutral
Jul 15, 2026
On July 13, 2026, Lulu’s Fashion Lounge Holdings, Inc. announced that its board had established a special committee of independent directors to review strategic alternatives aimed at maximizing shareholder value. The potential paths under co...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Lulu’s Shareholders Back Governance Changes at Annual Meeting
Positive
Jun 10, 2026
On June 9, 2026, Lulu’s Fashion Lounge Holdings, Inc. held its annual meeting of stockholders, with about 95% of outstanding common shares represented, and shareholders elected Anisa Kumar and Crystal Landsem as Class II directors to serve u...
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.