Business
Lulus Announces Preliminary Second Quarter 2023 Results
CHICO, Calif., July 25, 2023 (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 25, 2023 (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 2, 2023. The Company also announced that it plans to release its second quarter results after the market close on Tuesday, August 8, 2023, at 5:00 p.m. Eastern Time. Preliminary Second Quarter 2023 Highlights: We expect net revenue of approximately $104.5 million to $106.0 million, which would represent a decline of approximately 20.5% to 19.4% compared to the same period last year.We expect Adjusted EBITDA of approximately $3.4 million to $4.2 million, compared to $14.8 million during the same period last year.We expect a loss before income taxes of approximately $2.6 million to $1.8 million, compared to income before income taxes of $10.8 million during the same period last year. We are providing pre-tax income estimates as we have not completed our standard review of our quarterly income tax provision. Crystal Landsem, CEO of Lulus, said: “We started seeing signs of stabilizing consumer trends early in the second quarter and observed sequential monthly improvement in our year-over-year net revenue comparisons as the quarter progressed. However, topline demand fell short of our expectations and return rates increased more than anticipated as the quarter progressed, which drove a year-over-year net revenue decline in the second quarter in line with what we observed in the first quarter. Adjusted EBITDA also declined more than our expectations primarily due to lower topline demand and higher returns. On a positive note, we expect to realize sequential and year-over-year improvement in our per order shipping costs driven by actions taken to optimize our shipping network. We expect the shipping cost improvements along with higher anticipated merchandise margins, to drive meaningful sequential Gross Margin rate improvement from the first quarter to the second quarter and a Gross Margin rate consistent with pre-pandemic levels. As we expect continued choppiness in consumer demand, macroeconomic uncertainties and elevated return rates, we are withdrawing our full year 2023 guidance. We will provide an update on our revised fiscal 2023 outlook on our upcoming earnings call to allow additional time to observe business tre...