Lulus Reports Second Quarter 2025 Results
Lulus (NASDAQ:LVLU) reported Q2 2025 financial results showing mixed performance. Net revenue decreased 11% to $81.5 million, with Total Orders Placed down 16% but Average Order Value up 1% to $145. The company posted a net loss of $3.0 million, an improvement from the $10.8 million loss in Q2 2024, and achieved positive Adjusted EBITDA of $0.5 million.
Active Customers declined 8% to 2.5 million, while gross margin slightly decreased by 20 basis points to 45.3%. The company reduced its total debt by $4.3 million to $5.8 million and is actively negotiating a new asset-based revolving credit facility. Management expects positive Adjusted EBITDA in Q3 2025 and revised capital expenditure outlook to $2.5 million for full-year 2025.
The company noted strength in occasion dresses, particularly bridesmaid wear, offset by continued softness in casual wear and footwear categories.Lulus (NASDAQ:LVLU) ha riportato i risultati finanziari del secondo trimestre 2025 mostrando una performance mista. I ricavi netti sono diminuiti dell'11% a $81.5 milioni; gli ordini totali sono calati del 16%, mentre il valore medio dell'ordine è aumentato dell'1% a $145. La società ha registrato una perdita netta di $3.0 milioni, in miglioramento rispetto alla perdita di $10.8 milioni del Q2 2024, e ha realizzato un EBITDA rettificato positivo di $0.5 milioni.
I clienti attivi sono diminuiti dell'8% a 2.5 milioni, mentre la marginalità lorda si è ridotta di 20 punti base a 45,3%. L'azienda ha ridotto il debito totale di $4.3 milioni, portandolo a $5.8 milioni, e sta negoziando una nuova linea di credito revolving garantita su asset. Il management prevede un EBITDA rettificato positivo nel Q3 2025 e ha rivisto il piano degli investimenti a $2.5 milioni per l'intero 2025.
L'azienda ha segnalato forti vendite nei vestiti per occasioni speciali, in particolare negli abiti da damigella, compensate dalla persistente debolezza nelle linee di abbigliamento casual e calzature.
Lulus (NASDAQ:LVLU) presentó resultados financieros del segundo trimestre de 2025 con un desempeño mixto. Los ingresos netos cayeron un 11% hasta $81.5 millones; los pedidos totales disminuyeron un 16%, mientras que el valor medio por pedido subió un 1% hasta $145. La compañía registró una pérdida neta de $3.0 millones, mejorando respecto a la pérdida de $10.8 millones en el Q2 de 2024, y obtuvo un EBITDA ajustado positivo de $0.5 millones.
Los clientes activos disminuyeron un 8% hasta 2.5 millones, y el margen bruto se redujo ligeramente 20 puntos básicos hasta el 45.3%. La empresa redujo su deuda total en $4.3 millones hasta $5.8 millones y está negociando una nueva línea de crédito revolvente basada en activos. La dirección espera un EBITDA ajustado positivo en el Q3 de 2025 y revisó la previsión de gastos de capital a $2.5 millones para todo 2025.
La compañía destacó fortaleza en vestidos de ocasión, especialmente ropa de damas de honor, compensada por la continua debilidad en las categorías de ropa casual y calzado.
Lulus (NASDAQ:LVLU)는 2025년 2분기 실적을 발표했으며 결과는 엇갈렸습니다. 순매출은 11% 감소한 $81.5백만을 기록했고, 전체 주문 건수는 16% 감소한 반면 평균 주문 금액은 1% 증가하여 $145를 기록했습니다. 회사는 $3.0백만의 순손실을 보고했지만 이는 2024년 2분기의 $10.8백만 손실에서 개선된 수치이며, 조정 EBITDA는 $0.5백만의 흑자를 달성했습니다.
활동 고객 수는 8% 감소한 250만명으로 줄었고, 총마진은 20베이시스포인트 하락해 45.3%를 기록했습니다. 회사는 총부채를 $4.3백만 줄여 $5.8백만으로 낮췄으며, 자산을 담보로 한 새로운 회전 신용한도(리볼빙)를 협상 중입니다. 경영진은 2025년 3분기에 조정 EBITDA 흑자를 예상하며, 2025년 연간 자본지출 전망을 $2.5백만으로 수정했습니다.
제품 측면에서는 파티 드레스, 특히 들러리(브라이드메이드) 의류가 강세를 보였으나 캐주얼 의류와 신발 부문은 계속 부진했습니다.
Lulus (NASDAQ:LVLU) a publié ses résultats du deuxième trimestre 2025, montrant des performances mitigées. Le chiffre d'affaires net a diminué de 11% à $81.5 millions ; le nombre total de commandes a reculé de 16%, tandis que la valeur moyenne par commande a augmenté de 1% pour atteindre $145. La société a enregistré une perte nette de $3.0 millions, en amélioration par rapport à la perte de $10.8 millions au T2 2024, et a dégagé un EBITDA ajusté positif de $0.5 million.
Le nombre de clients actifs a diminué de 8% pour atteindre 2,5 millions, et la marge brute a légèrement reculé de 20 points de base à 45,3%. L'entreprise a réduit sa dette totale de $4.3 millions, la portant à $5.8 millions, et négocie actuellement une nouvelle ligne de crédit renouvelable garantie par des actifs. La direction anticipe un EBITDA ajusté positif au T3 2025 et a révisé les dépenses d'investissement prévues à $2.5 millions pour l'ensemble de 2025.
La société a noté une bonne dynamique sur les robes d'occasion, notamment les tenues de demoiselles d'honneur, compensée par une faiblesse persistante des catégories prêt-à-porter décontracté et des chaussures.
Lulus (NASDAQ:LVLU) veröffentlichte die Finanzergebnisse für das zweite Quartal 2025 mit gemischter Performance. Der Nettoumsatz ging um 11% auf $81.5 Millionen zurück; die Gesamtbestellungen fielen um 16%, während der durchschnittliche Bestellwert um 1% auf $145 stieg. Das Unternehmen verzeichnete einen Nettverlust von $3.0 Millionen, eine Verbesserung gegenüber dem Verlust von $10.8 Millionen im Q2 2024, und erzielte ein positives bereinigtes EBITDA von $0.5 Millionen.
Aktive Kunden gingen um 8% auf 2,5 Millionen zurück, und die Bruttomarge verringerte sich leicht um 20 Basispunkte auf 45,3%. Das Unternehmen reduzierte seine Gesamtverschuldung um $4.3 Millionen auf $5.8 Millionen und verhandelt derzeit über eine neue asset-basierte revolvierende Kreditlinie. Das Management erwartet ein positives bereinigtes EBITDA im Q3 2025 und hat die Investitionsprognose für das Gesamtjahr 2025 auf $2.5 Millionen angepasst.
Stärken wurden bei festlicher Kleidung, insbesondere bei Brautjungfernkleidern, festgestellt, während Freizeitmode und Schuhe weiterhin schwach blieben.
- Net loss improved significantly to $3.0 million from $10.8 million year-over-year
- Achieved positive Adjusted EBITDA of $0.5 million, compared to ($0.2) million last year
- Total debt reduced by $4.3 million to $5.8 million
- Average Order Value increased 1% to $145
- Net revenue declined 11% year-over-year to $81.5 million
- Total Orders Placed decreased 16% compared to last year
- Active Customers decreased 8% to 2.5 million
- Net cash used in operating activities of $1.4 million versus $3.7 million provided last year
- Gross margin declined 20 basis points to 45.3%
Insights
Lulus shows modest improvements but faces ongoing challenges with declining revenue, customer base, and limited cash reserves.
Lulus' Q2 2025 results present a mixed but predominantly challenging picture. Net revenue declined
While the company managed to achieve positive Adjusted EBITDA of
A critical concern is Lulus' cash position, which has deteriorated to just
The bright spot in their performance is the strength in occasion dresses, particularly bridesmaids, which aligns with their strategic pivot toward event attire. However, the continued weakness in casual wear and footwear offsets these gains, explaining the overall revenue decline.
Management's focus on negotiating a new asset-based revolving credit facility is essential given their current forbearance situation. The extension of their forbearance agreement by only one week suggests urgency in securing new financing arrangements, highlighting potential lender concerns about the company's financial trajectory.
While management expects positive Adjusted EBITDA in Q3 2025, the reduced capital expenditure outlook (
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 , an11% decrease compared to the same period last year, driven by a16% decrease in Total Orders Placed partly offset by a1% increase in Average Order Value (“AOV”) from$143 t o$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 to45.3% , 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 AND COMPREHENSIVE 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 | 7,056 | ||||||
| Tradename | 18,509 | 18,509 | ||||||
| Intangible assets, net | 2,650 | 2,762 | ||||||
| Lease right-of-use assets | 17,471 | 24,030 | ||||||
| Other noncurrent assets | 652 | 698 | ||||||
| Total assets | $ | 100,960 | $ | 108,198 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,403 | $ | 10,991 | ||||
| Accrued expenses and other current liabilities | 27,717 | 15,985 | ||||||
| Returns reserve | 16,530 | 9,765 | ||||||
| Stored-value card liability | 19,927 | 17,883 | ||||||
| Revolving line of credit | 5,750 | 13,090 | ||||||
| Lease liabilities, current | 6,402 | 6,611 | ||||||
| Total current liabilities | 82,729 | 74,325 | ||||||
| Lease liabilities, noncurrent | 13,073 | 19,653 | ||||||
| Other noncurrent liabilities | 905 | 852 | ||||||
| Total liabilities | 96,707 | 94,830 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock: | — | — | ||||||
| Common stock: | 43 | 42 | ||||||
| Additional paid-in capital | 264,932 | 262,313 | ||||||
| Accumulated deficit | (259,484 | ) | (248,491 | ) | ||||
| Treasury stock, at cost, 112,092 shares and 22,621 shares as of June 29, 2025 and December 29, 2024, respectively(1) | (1,238 | ) | (496 | ) | ||||
| Total stockholders' equity | 4,253 | 13,368 | ||||||
| Total liabilities and stockholders' equity | $ | 100,960 | $ | 108,198 | ||||
(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 STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | ||||||||
| Twenty-Six Weeks Ended | ||||||||
| June 29, | June 30, | |||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | (10,993 | ) | $ | (16,532 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 2,628 | 2,710 | ||||||
| Noncash lease expense | 2,300 | 1,956 | ||||||
| Gain on lease modification | (92 | ) | — | |||||
| Gain on lease termination | (229 | ) | — | |||||
| Amortization of debt discount and debt issuance costs | 314 | 78 | ||||||
| Loss on disposal of property and equipment | 2 | — | ||||||
| Equity-based compensation expense | 2,756 | 4,128 | ||||||
| Deferred income taxes | — | 3,802 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,167 | ) | (244 | ) | ||||
| Inventories | (3,313 | ) | (2,195 | ) | ||||
| Assets for recovery | (1,637 | ) | (533 | ) | ||||
| Income taxes (receivable) payable | 3,028 | (50 | ) | |||||
| Prepaid and other current assets | (282 | ) | (373 | ) | ||||
| Accounts payable | (4,588 | ) | 2,980 | |||||
| Accrued expenses and other current liabilities | 20,455 | 15,221 | ||||||
| Operating lease liabilities | (2,268 | ) | (1,928 | ) | ||||
| Other noncurrent liabilities | 52 | 1,617 | ||||||
| Net cash provided by operating activities | 6,966 | 10,637 | ||||||
| Cash Flows from Investing Activities | ||||||||
| Capitalized software development costs | (810 | ) | (738 | ) | ||||
| Purchases of property and equipment | (276 | ) | (885 | ) | ||||
| Other | 33 | — | ||||||
| Net cash used in investing activities | (1,053 | ) | (1,623 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from borrowings on revolving line of credit | — | 20,000 | ||||||
| Repayments on revolving line of credit | (7,340 | ) | (28,000 | ) | ||||
| Proceeds from issuance of common stock under ESPP | 88 | 167 | ||||||
| Principal payments on finance lease obligations | (636 | ) | (1,056 | ) | ||||
| Withholding tax payments related to vesting of RSUs and 2023 Bonus Plan | (209 | ) | (763 | ) | ||||
| Repurchase of common stock | (742 | ) | (87 | ) | ||||
| Net cash used in financing activities | (8,839 | ) | (9,739 | ) | ||||
| Net decrease in cash and cash equivalents | (2,926 | ) | (725 | ) | ||||
| Cash and cash equivalents at beginning of period | 4,460 | 2,506 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,534 | $ | 1,781 | ||||
Webcast & Conference Call Information
The Company will host a conference call and live webcast with the investment community at 5:00 p.m. Eastern Time today, Wednesday, August 13, 2025, to discuss its second quarter 2025 financial results. The live webcast will be accessible through the Investor Relations section of the Company’s website at https://investors.lulus.com/. To access the call through a conference line, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). A replay of the conference call will be posted shortly after the call and will be available for seven days following the call. To access the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). The access code for the replay is 13754162.
About Lulus
Headquartered in California and serving millions of customers worldwide, Lulus is an attainable luxury fashion brand for women, offering modern, unapologetically feminine designs at accessible prices for every occasion. Our aim is to make every woman feel confident and celebrated, supporting her for all of life’s occasions, big or small – from work desk to dream date, cozying up on the couch to the spotlight of her wedding day. Founded in 1996, Lulus delivers fresh styles to consumers daily, using direct consumer feedback and insights to refine product offerings and elevate the customer experience. Lulus’ world class personal stylists, bridal concierge, and customer care team share an unwavering commitment to elevating style and quality and bring exceptional customer service and personalized shopping to customers around the world. Follow @lulus on Instagram and @lulus on TikTok. Lulus is a registered trademark of Lulu’s Fashion Lounge, LLC. All rights reserved.
Forward-Looking Statements
This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our opportunities for growth, the long-term growth trajectory of our business, the negotiation of a new asset-based revolving credit facility, the intended impact of cost-reduction measures and our financial outlook for the third fiscal quarter ending September 28, 2025 and fiscal year ending December 28, 2025. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause Lulus’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the risk factors discussed in Part I, Item 1A, “Risk Factors” in Lulus’ Annual Report on Form 10-K for the fiscal year ended December 29, 2024, Part II, Item IA, “Risk Factors” in Lulus’ Quarterly Reports on Form 10-Q for the fiscal quarters ended March 30, 2025 and June 29, 2025, and our other filings with the Securities and Exchange Commission which could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Lulus may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, except as required by law, even if subsequent events cause its views to change.
Use of Non-GAAP Financial Measures and Other Operating Metrics
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Free Cash Flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release. Definitions of our non-GAAP financial measures and other operating metrics are presented below. We also use certain key operating metrics, including Gross Margin, Active Customers, Average Order Value, and Total Orders Placed.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that we calculate as net loss before interest expense, income taxes, depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense and other non-routine expenses. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes items that we do not consider to be indicative of our core operating performance.
Adjusted EBITDA Margin
Adjusted EBITDA Margin is a non-GAAP financial measure that we calculate as Adjusted EBITDA (as defined above) as a percentage of our net revenue.
Active Customers
We define Active Customers as the number of customers who have made at least one purchase across our platform in the prior 12-month period. Active Customer count is measured as of the last day of the relevant period. We consider the number of Active Customers to be a key performance metric on the basis that it is directly related to consumer awareness of our brand, our ability to attract visitors to our digital platform, and our ability to convert visitors to paying customers. Active Customer counts are based on deduplication logic using customer account and guest checkout name, address, and email information.
Average Order Value
We define AOV as the sum of the total gross sales before returns across our platform in a given period, plus shipping revenue, less discounts and markdowns, divided by the Total Orders Placed (as defined below) in that period. AOV reflects the average basket size of our customers. AOV may fluctuate as we continue investing in the development and introduction of new Lulus merchandise and as a result of our promotional discount activity.
Free Cash Flow
Free Cash Flow is a non-GAAP financial measure that we calculate as net cash (used in) provided by operating activities less cash used for capitalized software development costs and purchases of property and equipment. We view Free Cash Flow as an important indicator of our liquidity because it measures the amount of cash we generate.
Gross Margin
We define Gross Margin as gross profit as a percentage of our net revenue. Gross profit is equal to our net revenue less cost of revenue. Certain of our competitors and other retailers report cost of revenue differently than we do. As a result, the reporting of our gross profit and Gross Margin may not be comparable to other companies.
Net Debt
Net Debt is a non-GAAP financial measure that is defined as total debt, which currently consists of the revolving line of credit, less cash and cash equivalents. We consider Net Debt to be an important supplemental measure of our financial position, which allows us to analyze our leverage.
Total Orders Placed
We define Total Orders Placed as the number of customer orders placed across our platform during a particular period. An order is counted on the day the customer places the order. We do not adjust the number of Total Orders Placed for any cancellation or return that may have occurred subsequent to a customer placing an order. We consider Total Orders Placed as a key performance metric on the basis that it is directly related to our ability to attract and retain customers as well as drive purchase frequency. Total Orders Placed, together with AOV, is an indicator of the net revenue we expect to generate in a particular period.
LULU’S FASHION LOUNGE HOLDINGS, INC. KEY OPERATING AND FINANCIAL METRICS (Unaudited) | ||||||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |||||||||||||
| (In thousands, except Average Order Value and percentages) | ||||||||||||||||
| Gross Margin | 45.3 | % | 45.5 | % | 43.1 | % | 44.0 | % | ||||||||
| Net loss | $ | (2,995 | ) | $ | (10,796 | ) | $ | (10,993 | ) | $ | (16,532 | ) | ||||
| Adjusted EBITDA | $ | 482 | $ | (207 | ) | $ | (4,188 | ) | $ | (2,866 | ) | |||||
| Adjusted EBITDA Margin | 0.6 | % | (0.2 | )% | (2.9 | )% | (1.7 | )% | ||||||||
| Average Order Value | $ | 145 | $ | 143 | $ | 141 | $ | 143 | ||||||||
| Active Customers | 2,460 | 2,670 | 2,460 | 2,670 | ||||||||||||
| Note: Refer to “Use of Non-GAAP Financial Measures and Other Operating Metrics” section above for definitions of these metrics. | ||||||||||||||||
| LULU’S FASHION LOUNGE HOLDINGS, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) | ||||||||||||
| A reconciliation to non-GAAP Net Debt from total debt as of June 29, 2025 and December 29, 2024 is as follows: | ||||||||||||
| As of | ||||||||||||
| June 29, 2025 | March 30, 2025 | December 29, 2024 | ||||||||||
| (In thousands) | ||||||||||||
| Total debt (1) | $ | (5,750 | ) | $ | (10,090 | ) | $ | (13,090 | ) | |||
| Cash and cash equivalents | 1,534 | 8,616 | 4,460 | |||||||||
| Net Debt | $ | (4,216 | ) | $ | (1,474 | ) | $ | (8,630 | ) | |||
| (1) Consists of the revolving line of credit | ||||||||||||
| A reconciliation to non-GAAP Adjusted EBITDA from net loss for the thirteen and twenty-six weeks ended June 29, 2025 and June 30, 2024 is as follows: | ||||||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |||||||||||||
| (In thousands, except percentages) | ||||||||||||||||
| Net loss | $ | (2,995 | ) | $ | (10,796 | ) | $ | (10,993 | ) | $ | (16,532 | ) | ||||
| Excluding: | ||||||||||||||||
| Depreciation and amortization | 1,277 | 1,371 | 2,628 | 2,710 | ||||||||||||
| Interest expense | 856 | 270 | 1,433 | 653 | ||||||||||||
| Income tax provision (benefit) | 62 | 6,331 | (12 | ) | 5,752 | |||||||||||
| Equity-based compensation expense (1) | 1,282 | 2,194 | 2,756 | 4,128 | ||||||||||||
| Other non-routine expense (2) | — | 423 | — | 423 | ||||||||||||
| Adjusted EBITDA | $ | 482 | $ | (207 | ) | $ | (4,188 | ) | $ | (2,866 | ) | |||||
| Net loss margin | (3.7 | )% | (11.7 | )% | (7.5 | )% | (9.8 | )% | ||||||||
| Adjusted EBITDA Margin | 0.6 | % | (0.2 | )% | (2.9 | )% | (1.7 | )% | ||||||||
(1) The thirteen and twenty-six weeks ended June 29, 2025 include equity-based compensation expense for performance stock units (“PSUs”) and restricted stock units (“RSUs”) granted during the period and prior periods. The thirteen and twenty-six weeks ended June 30, 2024 include equity-based compensation expense for PSUs and RSUs granted during the period and prior periods, as well as equity-based awards granted in prior periods. (2) The thirteen and twenty-six weeks ended June 30, 2024 include non-routine expensesrelated to a legal reserve accrual net of an anticipated and contingent insurance receivable. | ||||||||||||||||
| A reconciliation to non-GAAP Free Cash Flow from net cash (used in) provided by operating activities for the thirteen and twenty-six weeks ended June 29, 2025 and June 30, 2024 is as follows: | ||||||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |||||||||||||
| Net cash (used in) provided by operating activities | $ | (1,356 | ) | $ | 3,690 | $ | 6,966 | $ | 10,637 | |||||||
| Capitalized software development costs | (383 | ) | (341 | ) | (810 | ) | (738 | ) | ||||||||
| Purchases of property and equipment | (136 | ) | (323 | ) | (276 | ) | (885 | ) | ||||||||
| Free Cash Flow | $ | (1,875 | ) | $ | 3,026 | $ | 5,880 | $ | 9,014 | |||||||
Contact
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FAQ
What were Lulus (LVLU) key financial results for Q2 2025?
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What is Lulus (LVLU) debt position as of Q2 2025?
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How did Lulus (LVLU) Average Order Value (AOV) perform in Q2 2025?
