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Lulus Reports Third Quarter 2024 Results

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Lulus reported Q3 2024 financial results with net revenue of $80.5 million, a 3% decrease from the previous year. The company saw record growth in special occasion and bridesmaid dress categories, offset by softness in casual wear. Key metrics showed a 9% decrease in gross profit to $30.6 million, with margins declining 220 basis points to 38.1%. The company reported a net loss of $6.9 million, compared to $3.9 million loss last year. Active customers decreased 10% to 2.7 million. For Q4 2024, Lulus expects net revenue between $67.5-70.0 million, and full-year 2024 revenue between $317.5-320 million.

Lulus ha riportato i risultati finanziari del terzo trimestre 2024 con entrate nette di 80,5 milioni di dollari, una diminuzione del 3% rispetto all'anno precedente. L'azienda ha registrato una crescita record nelle categorie di abiti per occasioni speciali e damigelle, compensata da una debolezza nell'abbigliamento casual. Le principali metriche hanno mostrato una diminuzione del 9% del profitto lordo, scendendo a 30,6 milioni di dollari, con i margini che sono diminuiti di 220 punti base, portandoli al 38,1%. L'azienda ha riportato una perdita netta di 6,9 milioni di dollari, rispetto a una perdita di 3,9 milioni di dollari dell'anno scorso. Il numero di clienti attivi è diminuito del 10%, scendendo a 2,7 milioni. Per il quarto trimestre del 2024, Lulus prevede entrate nette tra i 67,5 e i 70,0 milioni di dollari, e un fatturato annuo complessivo per il 2024 tra i 317,5 e i 320 milioni di dollari.

Lulus reportó los resultados financieros del tercer trimestre de 2024 con ingresos netos de 80,5 millones de dólares, una disminución del 3% en comparación con el año anterior. La empresa vio un crecimiento récord en las categorías de vestidos para ocasiones especiales y de dama de honor, compensado por una debilidad en la ropa casual. Las métricas clave mostraron una disminución del 9% en las ganancias brutas, cayendo a 30,6 millones de dólares, con márgenes que cayeron 220 puntos básicos hasta el 38,1%. La compañía reportó una pérdida neta de 6,9 millones de dólares, en comparación con una pérdida de 3,9 millones de dólares del año pasado. Los clientes activos disminuyeron un 10%, hasta 2,7 millones. Para el cuarto trimestre de 2024, Lulus espera ingresos netos entre 67,5 y 70,0 millones de dólares, y unos ingresos anuales totales para 2024 entre 317,5 y 320 millones de dólares.

Lulus는 2024년 3분기 재무 결과를 발표하며 순수익이 8,050만 달러로 전년 대비 3% 감소했다고 전했습니다. 이 회사는 특별한 행사와 신부 대여 드레스 카테고리에서 기록적인 성장을 보였으나, 캐주얼 의류에서의 부진이 이를 상쇄했습니다. 주요 지표는 총 이익이 9% 감소하여 3,060만 달러에 달하며, 마진은 220베이시스 포인트 감소하여 38.1%에 이르렀습니다. 이 회사는 순손실이 690만 달러에 달했다고 보고했으며, 이는 작년에 비해 390만 달러의 손실과 비교됩니다. 활성 고객 수는 10% 감소하여 270만 명으로 줄었습니다. 2024년 4분기 동안 Lulus는 순수익을 6,750만에서 7,000만 달러 사이로 예상하며, 2024년 전체 수익은 3억 1,750만에서 3억 2,000만 달러 사이가 될 것으로 예상하고 있습니다.

Lulus a annoncé ses résultats financiers pour le troisième trimestre 2024 avec des revenus nets de 80,5 millions de dollars, soit une diminution de 3% par rapport à l'année précédente. L'entreprise a enregistré une croissance record dans les catégories de robes pour occasions spéciales et de demoiselle d'honneur, compensée par une faiblesse dans l'habillement décontracté. Les indicateurs clés ont montré une baisse de 9% du bénéfice brut, atteignant 30,6 millions de dollars, avec une marge en baisse de 220 points de base à 38,1%. L'entreprise a déclaré une perte nette de 6,9 millions de dollars, contre 3,9 millions de dollars l'année dernière. Le nombre de clients actifs a diminué de 10% pour atteindre 2,7 millions. Pour le quatrième trimestre 2024, Lulus prévoit des revenus nets compris entre 67,5 et 70,0 millions de dollars, et un chiffre d'affaires total pour l'année 2024 compris entre 317,5 et 320 millions de dollars.

Lulus hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit Nettoeinnahmen von 80,5 Millionen Dollar, was einem Rückgang von 3% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete ein Rekordwachstum in den Kategorien Kleider für besondere Anlässe und Brautjungfern, was durch einen Rückgang im Freizeitkleidungsmix ausgeglichen wurde. Wichtige Kennzahlen zeigten einen Rückgang des Bruttogewinns um 9% auf 30,6 Millionen Dollar, wobei die Margen um 220 Basispunkte auf 38,1% gesunken sind. Das Unternehmen berichtete von einem Nettoverlust von 6,9 Millionen Dollar, verglichen mit einem Verlust von 3,9 Millionen Dollar im Vorjahr. Die aktiven Kunden gingen um 10% auf 2,7 Millionen zurück. Für das vierte Quartal 2024 erwartet Lulus Nettoerlöse zwischen 67,5 und 70,0 Millionen Dollar sowie einen Gesamtumsatz für 2024 zwischen 317,5 und 320 Millionen Dollar.

Positive
  • Record growth in special occasion and bridesmaid dress categories
  • 7% reduction in inventory, outpacing 3% revenue decline
  • Reduced return rates
Negative
  • Net revenue decreased 3% to $80.5 million
  • Net loss widened to $6.9 million from $3.9 million year-over-year
  • Gross margin decreased 220 basis points to 38.1%
  • Active customers declined 10% to 2.7 million
  • Total debt increased by $11.5 million in Q3
  • Negative cash flow from operations of $5.5 million vs positive $12.7 million last year

Insights

The Q3 results reveal significant challenges at Lulus, with concerning financial metrics across the board. Net revenue declined 3% to $80.5 million, while the company reported a widening net loss of $6.9 million compared to $3.9 million last year. The 10% drop in active customers to 2.7 million signals weakening consumer engagement.

Most concerning is the deteriorating cash position, with operating cash flow turning negative at $5.5 million versus positive $12.7 million last year. The company's increased reliance on its credit facility, with debt up $11.5 million in Q3, coupled with declining margins and the decision to withhold Q4 Adjusted EBITDA guidance, suggests significant near-term financial pressure. The projected Q4 revenue decline of approximately 10% year-over-year indicates continued operational challenges ahead.

Significant Sequential Quarterly Net Revenue Comp Improvement with Q3 Reaching Negative Low Single Digits

Updated Outlook for Q4 and Fiscal Year 2024

CHICO, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial results for the third quarter ended September 29, 2024.

Crystal Landsem, CEO of Lulus, said:

“Third quarter net revenue came in ahead of our outlook, driven by record growth in special occasion and bridesmaid dress categories, boosting overall dress sales and reinforcing our strength in event apparel. This gain was offset by continued softness in our casual wear business, which we are strategically reevaluating to better align with our core focus on event attire. As a result, we took a proactive approach to inventory management, leveraging markdowns and promotions to end the quarter with a 7% decline in inventory, outpacing our 3% decline in net revenue. While these actions weighed on gross margins, they support our efforts to sustain demand and drive top line growth.

To that end, our ongoing strategic initiatives and cost reduction efforts are firmly in place and we are working towards securing more flexible, longer term options in place of our existing revolving credit facility to support the near term financial flexibility and long-term growth of Lulus. We remain confident in our brand, the opportunities ahead, and the value we deliver to our customers, and are committed to building a strong foundation for sustainable growth.”

Third Quarter 2024 Highlights:

  • Net revenue of $80.5 million, a decrease of 3% compared to $83.1 million in the same period last year, driven by a 3% decrease in Total Orders Placed and a 2% decrease in Average Order Value (“AOV”) from $133 to $131, offset by reduced return rates.
  • Active Customers of 2.7 million, a decrease of 10% compared to 3.0 million in the same period last year and flat compared to the second quarter of 2024.
  • Gross profit decreased 9% to $30.6 million and Gross Margin decreased 220 basis points to 38.1%, in each case compared to the same period last year.
  • Net loss of $6.9 million, compared to $3.9 million in the same period last year.  
  • Adjusted EBITDA* of ($3.6) million, compared to $1.0 million in the same period last year. 
  • Net cash used in operating activities of $5.5 million, compared to net cash provided by operating activities of $12.7 million in the same period last year.
  • Free Cash Flow* of ($6.3) million, compared to $11.6 million in the same period last year.
  • Total debt increased by $11.5 million and $3.5 million during the thirteen and thirty-nine weeks ended September 29, 2024, respectively.
  • Net Debt* increased by $7.0 million and decreased by $0.3 million during the thirteen and thirty-nine weeks ended September 29, 2024, respectively.

Tiffany Smith, CFO of Lulus, said:

“Our focus through Q4 is on generating additional liquidity, maintaining healthy inventory turns, and accelerating a reset of our shoes and separates assortments. Amid ongoing macro uncertainties and consumer pressures, we are taking a disciplined approach to cost management to ensure we maintain a healthy financial position. Our fourth quarter and full-year net revenue outlook contemplates continued momentum in our special occasion and event wear categories, balanced by a targeted product assortment reset in underperforming casual categories, the latter of which tempers our Q4 sales expectations. Continued macroeconomic pressures and our product assortment reset introduce some uncertainty in Q4 margin and profitability expectations; therefore, we are not issuing a fourth quarter Adjusted EBITDA outlook at this time. Our confidence remains high in achieving our long-term sales and profitability targets.”

Updated Financial Outlook:

  • Fourth quarter 2024 net revenue is expected to be between approximately $67.5 million and $70.0 million, compared to $75 million in the same period last year. Full year 2024 net revenue is expected to be between approximately $317.5 million and $320 million, compared to $355.2 million in fiscal year 2023.
  • The full-year 2024 capital expenditure plan has been reduced to approximately $3.2 million, a reduction of $0.3 million relative to our previous estimate.

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 demand, spending and returns by our customers, macroeconomic uncertainties, inflation, supply chain pressures, and 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, the presidential election, 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 Thirty-Nine Weeks Ended
 September 29,    October 1,    September 29,    October 1,
 2024  2023  2024  2023 
Net revenue$80,515  $83,118  $249,740  $280,216 
Cost of revenue 49,866   49,593   144,562   161,334 
Gross profit 30,649   33,525   105,178   118,882 
Selling and marketing expenses 17,624   16,825   60,231   60,984 
General and administrative expenses 19,869   21,575   62,416   70,319 
Loss from operations (6,844)  (4,875)  (17,469)  (12,421)
Interest expense (305)  (442)  (958)  (1,391)
Other income, net 281   270   779   716 
Loss before benefit (provision) for income taxes (6,868)  (5,047)  (17,648)  (13,096)
Income tax benefit (provision) (11)  1,158   (5,763)  992 
Net loss and comprehensive loss$(6,879) $(3,889) $(23,411) $(12,104)
            
Basic loss per share$(0.16) $(0.10) $(0.57) $(0.31)
Diluted loss per share$(0.16) $(0.10) $(0.57) $(0.31)
Basic weighted-average shares outstanding 41,702,122   40,103,152   41,358,919   39,672,938 
Diluted weighted-average shares outstanding 41,702,122   40,103,152   41,358,919   39,672,938 
                
                


      
LULU’S FASHION LOUNGE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
      
  September 29,  December 31,
  2024      2023 
Assets     
Current assets:     
Cash and cash equivalents$6,308  $2,506 
Accounts receivable 4,467   3,542 
Inventory, net 38,477   35,472 
Assets for recovery 4,852   3,111 
Income tax refund receivable 2,562   2,510 
Prepaids and other current assets 8,655   5,379 
Total current assets 65,321   52,520 
Property and equipment, net 4,376   4,712 
Goodwill 35,430   35,430 
Tradename 18,509   18,509 
Intangible assets, net 2,850   3,263 
Lease right-of-use assets 25,508   29,516 
Other noncurrent assets 1,539   5,495 
Total assets$153,533  $149,445 
Liabilities and Stockholders' Equity     
Current liabilities:     
Accounts payable$11,371  $8,900 
Accrued expenses and other current liabilities 26,621   18,343 
Returns reserve 15,308   7,854 
Stored-value card liability 16,042   13,142 
Revolving line of credit 11,500   8,000 
Lease liabilities, current 5,793   5,648 
Total current liabilities 86,635   61,887 
Lease liabilities, noncurrent 21,020   25,427 
Other noncurrent liabilities 2,109   1,179 
Total liabilities 109,764   88,493 
      
Stockholders' equity:     
Preferred stock: $0.001 par value, 10,000,000 shares authorized, and no shares issued or outstanding     
Common stock: $0.001 par value, 250,000,000 shares authorized; and 41,912,709 and 40,618,206 shares issued and outstanding as of September 29, 2024 and December 31, 2023, respectively 42   41 
Additional paid-in capital 260,619   254,116 
Accumulated deficit (216,616)  (193,205)
Treasury stock, at cost, 178,143 shares and zero shares as of September 29, 2024 and December 31, 2023, respectively (276)   
Total stockholders' equity 43,769   60,952 
Total liabilities and stockholders' equity$153,533  $149,445 
        
        


      
LULU’S FASHION LOUNGE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
      
 Thirty-Nine Weeks Ended
 September 29,    October 1,
 2024  2023 
Cash Flows from Operating Activities     
Net loss$(23,411) $(12,104)
Adjustments to reconcile net loss to net cash provided by operating activities:     
Depreciation and amortization 4,102   3,546 
Noncash lease expense 2,958   2,699 
Amortization of debt discount and debt issuance costs 137   117 
Loss on disposal of property and equipment 6    
Equity-based compensation expense 6,150   13,366 
Deferred income taxes 3,802   (2,281)
Changes in operating assets and liabilities:     
Accounts receivable (925)  470 
Inventories (3,005)  1,696 
Assets for recovery (1,741)  (1,853)
Income taxes (receivable) payable (52)  2,243 
Prepaid and other current assets (3,276)  527 
Accounts payable 2,512   3,620 
Accrued expenses and other current liabilities 19,183   11,636 
Operating lease liabilities (2,931)  (2,464)
Other noncurrent liabilities 1,624   (118)
Net cash provided by operating activities 5,133   21,100 
Cash Flows from Investing Activities     
Capitalized software development costs (1,144)  (1,550)
Purchases of property and equipment (1,271)  (1,393)
Other    (66)
Net cash used in investing activities (2,415)  (3,009)
Cash Flows from Financing Activities     
Proceeds from borrowings on revolving line of credit 31,500   10,000 
Repayments on revolving line of credit (28,000)  (24,000)
Proceeds from issuance of common stock under Employee Stock Purchase Plan (ESPP) 239   487 
Principal payments on finance lease obligations (1,374)  (726)
Withholding tax payments related to vesting of RSUs and 2023 Bonus Plan (1,005)  (1,199)
Repurchase of common stock (276)   
Other    (6)
Net cash provided by (used in) financing activities 1,084   (15,444)
Net decrease in cash and cash equivalents 3,802   2,647 
Cash and cash equivalents at beginning of period 2,506   10,219 
Cash, cash equivalents and restricted cash at end of period$6,308  $12,866 
        
        

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, November 13, 2024, to discuss its third quarter 2024 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 1-877-407-0792 (in the U.S.) or 1-201-689-8263 (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 13749307.

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 all of life’s fashionable moments. Our aim is to make every woman feel beautiful, celebrated and as if she’s the most special version of herself for every occasion – from work desk to dream date or cozied 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 in the coming quarters, the long-term growth trajectory of our business, our efforts to secure alternative debt financing, the intended impact of cost-reduction measures and our financial outlook for the fourth fiscal quarter ending December 29, 2024 and full year 2024. 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 31, 2023, Part II, Item 1A, “Risk Factors” in Lulus’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, Part II, Item 1A, “Risk Factors” in Lulus’ Quarterly Report on Form 10-Q for the quarter ended September 29, 2024, 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 Cash (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 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 and other non-routine expenses, 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. 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 de-duplication logic using customer account and guest checkout name, address, and email information.

Average Order Value

We define Average Order Value (“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 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 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 Cash (Debt)

Net Cash (Debt) is defined as total debt, which currently consists of the revolving line of credit, less cash and cash equivalents.  We consider Net Cash (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 Thirty-Nine Weeks Ended
 September 29,
2024
 October 1,
2023
 September 29,
2024
 October 1,
2023
 (In thousands, except Average Order Value and percentages)
Gross Margin 38.1%  40.3%  42.1%  42.4%
Net loss$(6,879) $(3,889) $(23,411) $(12,104)
Adjusted EBITDA$(3,572) $972  $(6,438) $5,207 
Adjusted EBITDA Margin (4.4)%  1.2%  (2.6)%  1.9%
Average Order Value$131  $133  $139  $133 
Active Customers 2,670   2,960   2,670   2,960 

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 Cash (Debt) from total debt as of September 29, 2024, June 30, 2024 and December 31, 2023 is as follows:

         
 As of
 September 29,
2024
     June 30,
2024
 December 31,
2023
 (In thousands)
Total debt (1)$(11,500) $ $(8,000)
Cash and cash equivalents 6,308   1,781  2,506 
Net Cash (Debt)$(5,192) $1,781 $(5,494)
(1) Consists of the revolving line of credit
 

A reconciliation to non-GAAP Adjusted EBITDA from net loss for the thirteen and thirty-nine weeks ended September 29, 2024 and October 1, 2023 is as follows:

            
 Thirteen Weeks Ended Thirty-Nine Weeks Ended
 September 29,
2024
 October 1,
2023
 September 29,
2024
 October 1,
2023
 (In thousands, except percentages)
Net loss$(6,879) $(3,889) $(23,411) $(12,104)
Excluding:           
Depreciation and amortization 1,392   1,240   4,102   3,546 
Interest expense 305   442   958   1,391 
Income tax benefit (provision) 11   (1,158)  5,763   (992)
Equity-based compensation expense (1) 2,022   4,337   6,150   13,366 
Reversal of other non-routine expense (2) (423)         
Adjusted EBITDA$(3,572) $972  $(6,438) $5,207 
Net loss margin (8.5)%  (4.7)%  (9.4)%  (4.3)%
Adjusted EBITDA margin (4.4)%  1.2%  (2.6)%  1.9%


(1)The thirteen weeks ended September 29, 2024 include equity-based compensation expense for restricted stock units (“RSUs”) granted during the period and prior periods, performance stock units (“PSUs”) and equity-based awards granted in prior periods, as well as forfeitures partially offset by accelerated vesting expense associated with the resignation of directors during the period. The thirty-nine weeks ended September 29, 2024 include equity-based compensation expense for RSUs and PSUs granted during the period and prior periods, equity-based awards granted in prior periods, as well as forfeitures partially offset by accelerated vesting expense associated with the resignation of directors during the period. The thirteen weeks ended October 1, 2023 include equity-based compensation expense for RSUs granted during the period, as well as equity-based awards granted in prior periods. The thirty-nine weeks ended October 1, 2023 include equity-based compensation expense for PSUs and RSUs granted during the period, accelerated expense in the period associated with the voluntary forfeiture of stock options, and equity-based awards granted in prior periods.
(2)The thirteen and thirty-nine weeks ended September 29, 2024 include adjustments to previously accrued non-routine expenses related to a legal accrual net of insurance.
  

A reconciliation to non-GAAP Free Cash Flow from net cash provided by operating activities for the thirteen and thirty-nine weeks ended September 29, 2024 and October 1, 2023 is as follows:

            
 Thirteen Weeks Ended Thirty-Nine Weeks Ended
 September 29,
2024
 October 1,
2023
 September 29,
2024
 October 1,
2023
Net cash provided by (used in) operating activities$(5,504) $12,749  $5,133  $21,100 
Capitalized software development costs (406)  (524)  (1,144)  (1,550)
Purchases of property and equipment (386)  (667)  (1,271)  (1,393)
Free Cash Flow$(6,296) $11,558  $2,718  $18,157 
                
                

Contact
Abbygail Reyes
Vice President, Communications
investors@lulus.com


FAQ

What was Lulus (LVLU) revenue in Q3 2024?

Lulus reported net revenue of $80.5 million in Q3 2024, representing a 3% decrease from $83.1 million in the same period last year.

What is Lulus (LVLU) revenue guidance for Q4 2024?

Lulus expects Q4 2024 net revenue to be between $67.5 million and $70.0 million, compared to $75 million in the same period last year.

How much did Lulus (LVLU) lose in Q3 2024?

Lulus reported a net loss of $6.9 million in Q3 2024, compared to a net loss of $3.9 million in the same period last year.

What was Lulus (LVLU) active customer count in Q3 2024?

Lulus reported 2.7 million active customers in Q3 2024, a 10% decrease compared to 3.0 million in the same period last year.

Lulu's Fashion Lounge Holdings, Inc.

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