Lulus Reports Second Quarter 2025 Results
CHICO, Calif., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Lulu's Fashion Lounge Holdings, Inc. ("Lulus" or the "Company") (NASDAQ:LVLU) today reported financial results for the second quarter ended June 29, 2025 and updated its Adjusted EBITDA financial outlook for the third quarter ending September 28, 2025 and its capital expenditure outlook for the year ending December 28, 2025.
Crystal Landsem, CEO and Interim CFO of Lulus, said:
"In the second quarter, we saw meaningful sequential improvement in our quarterly year-over-year net revenue comparison, and we continued to see positive sales momentum in occasion dresses, led by our bridesmaid category. This performance was offset by continued softness in casual wear and footwear, which we are actively repositioning to better align with our strengths in event attire. We remain encouraged by the progress we are making against our strategic initiatives to drive cost efficiency and more effectively expand our reach to a broader customer base.
Importantly, during the quarter, we achieved our expectations with respect to generating positive Adjusted EBITDA and continuing to reduce our total debt. We believe the condition of our balance sheet, along with a leaner cost structure, position us well for the remainder of the year as we continue to invest in our brand, expand on our strategic wholesale partnerships and optimize our product margin. As a result, we expect positive Adjusted EBITDA in the third quarter 2025, along with continued strengthening of our liquidity position reinforced by the active negotiation of a new asset-based revolving credit facility in the third quarter 2025. We will continue to closely manage our business and take the necessary steps to successfully navigate this dynamic environment."
Second Quarter 2025 Highlights:
Net revenue of $81.5 million, an 11% decrease compared to the same period last year, driven by a 16% decrease in Total Orders Placed partly offset by a 1% increase in Average Order Value ("AOV") from $143 to $145 and the favorable impact of lower return rates, compared to the same period last year.
Active Customers of 2.5 million, an 8% decrease compared to 2.7 million in the same period last year.
Gross profit decreased 12% to $36.9 million and Gross Margin decreased 20 basis points to 45.3%, in each case compared to the same period last year.
Net loss of $3.0 million, compared to net loss of $10.8 million in the same period last year.
Adjusted EBITDA* of $0.5 million, compared to ($0.2) million in the same period last year.
Net cash used in operating activities of $1.4 million, compared to net cash provided by operating activities of $3.7 million in the same period last year.
Free Cash Flow* of ($1.9) million, compared to $3.0 million in the same period last year.
Total debt decreased by $4.3 million to $5.8 million and Net Debt* increased by $2.7 million to $4.2 million, during the thirteen weeks ended June 29, 2025.
Note: "*" represents a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures and Other Operating Metrics" section below for definitions of these metrics.
Amendment to Forbearance Agreement and Fifth Amendment to Credit Agreement:
On August 11, 2025, the Company entered into an Amendment to the Forbearance Agreement and Fifth Amendment to the credit agreement with Bank of America for the Company's current revolving facility (the "Credit Agreement") (collectively, the "Forbearance Amendment"). Pursuant to the terms of the Forbearance Amendment, the parties agreed to amend the definition of "Forbearance Termination Event" set forth in the Forbearance Agreement to replace "August 15, 2025" with "August 22, 2025". The Forbearance Amendment also amended the definition of "Maturity Date" set forth in the Credit Agreement, as amended, to replace "August 15, 2025" with "August 22, 2025". The Company is actively negotiating a new asset-based revolving credit facility.
Updated Financial Outlook:
We expect positive Adjusted EBITDA in the third quarter 2025.
We expect our full year 2025 capital expenditures to be approximately $2.5 million, which represents the low end of our previously estimated range of between $2.5 million and $3.0 million.
Forecasting future results or trends is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. Lulus' outlook is based on current indications for its business. Lulus' outlook factors in our current best estimates for anticipated headwinds, including those related to the level of tariffs, consumer demand, spending and returns by our customers, macroeconomic uncertainties, inflation, supply chain pressures, shipping costs, and the intended impact of cost-reduction measures. Given the volatile nature of current consumer demand and potential for further impacts to consumer behavior due to macroeconomic factors, including continued inflation, higher interest rates, student loan repayment resumption, global political changes, including as a result of the change in the U.S. presidential administration, tariffs or bans, existing and future laws, regulations, and directives (including executive orders), as well as other world events, wars, and domestic and international conflicts that affect overall consumer confidence and the predictability of consumer purchasing behavior, Lulus' financial outlook is subject to change.
LULU'S FASHION LOUNGE HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS(Unaudited)(In thousands, except share and per share data)
Thirteen Weeks Ended
Twenty-Six Weeks Ended
June 29,
June 30,
June 29,
June 30,
2025
2024
2025
2024
Net revenue
$
81,520
$
91,966
$
145,675
$
169,225
Cost of revenue
44,588
50,083
82,902
94,696
Gross profit
36,932
41,883
62,773
74,529
Selling and marketing expenses
21,993
24,914
37,908
42,607
General and administrative expenses
17,562
21,436
35,606
42,547
Loss from operations
(2,623
)
(4,467
)
(10,741
)
(10,625
)
Interest expense
(856
)
(270
)
(1,433
)
(653
)
Other income, net
546
272
1,169
498
Loss before benefit for income taxes
(2,933
)
(4,465
)
(11,005
)
(10,780
)
Income tax (provision) benefit
(62
)
(6,331
)
12
(5,752
)
Net loss and comprehensive loss
(2,995
)
(10,796
)
(10,993
)
(16,532
)
Basic loss per share(1)
$
(1.08
)
$
(3.92
)
$
(3.94
)
$
(6.02
)
Diluted loss per share(1)
$
(1.08
)
$
(3.92
)
$
(3.94
)
$
(6.02
)
Basic weighted-average shares outstanding(1)
2,782,417
2,757,119
2,787,924
2,745,877
Diluted weighted-average shares outstanding(1)
2,782,417
2,757,119
2,787,924
2,745,877
(1) Amounts have been adjusted to reflect the 1-for-15 reverse stock split that became effective as of the opening of business on July 7, 2025. Refer to Note 2, "Significant Accounting Policies", in the Notes to the Condensed Consolidated Financial Statements included in the Quarterly Report on Form 10-Q for the period ended June 29, 2025, for more information.
LULU'S FASHION LOUNGE HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(In thousands, except share and per share data)
June 29,
December 29,
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
1,534
$
4,460
Accounts receivable
3,325
2,158
Inventory, net
37,349
34,036
Assets for recovery
4,020
2,383
Income tax refund receivable, net
1,149
4,177
Prepaids and other current assets
4,219
4,287
Total current assets
51,596
51,501
Property and equipment, net
3,026
3,642
Goodwill
7,056
