Business
Lulus Announces Preliminary Second Quarter 2022 Results and Updates 2022 Guidance
CHICO, Calif., July 28, 2022 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today announced preliminary
About this update from Lulu's Fashion Lounge Holdings, Inc.
[{"type":"text","content":"CHICO, Calif., July 28, 2022 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today announced preliminary unaudited financial results for the second quarter ended July 3, 2022, and updated guidance for full year 2022. The Company also announced that it plans to release its second quarter results after the market close on Tuesday, August 16, 2022, at 5:00 p.m. Eastern Time. Preliminary Second Quarter 2022 Highlights: We expect net revenue of approximately $131.0 million to $132.0 million, which will represent approximately 26.5% to 27.5% growth compared to the same period last year.We expect Adjusted EBITDA of approximately $14.5 million to $15.1 million, compared to $17.8 million during the same period last year.We expect net income in the range of approximately $5.6 million to $6.2 million, compared to $8.3 million during the same period last year. David McCreight, CEO of Lulus, said: “Despite macroeconomic headwinds, we delivered double digit year-over-year and sequential revenue growth in Q2. After a very strong start to Q2, in late May we began to see volatility in traffic trends and conversion rates, likely driven by increasing macro pressures that impacted our customer’s spending and merchandise returns behavior. While marketing spend remained first order profitable and in-line with historical efficiency ranges, merchandise return rates came in higher than expected and impacted net revenue trends and flow through to Adjusted EBITDA. Also, higher than expected shipping costs related to fuel surcharges further pressured Adjusted EBITDA. In response to changing customer behaviors, we are actively managing our inventory and discretionary expenses. We remain confident in our long-term plans for profitable growth as a leading apparel provider for Gen Z and Millennial women.” Guidance: Based upon the expectation of continued macroeconomic headwinds, we are revising our full year 2022 outlook for net revenue and Adjusted EBITDA. Net revenue is expected to be between $440 million and $480 million, representing 17.1% and 27.8% growth over 2021 net revenue, as compared to our previous guidance range of between $490 million and $500 million. Adjusted EBITDA is expected to be between $35.0 million and $45.0 million, which represents 8.0% and 9.4% of net revenue, respectively, compared t...