Business
Lulus Reports Continued Profitability for the Third Quarter 2022 and Updates 2022 Guidance
CHICO, Calif., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial
About this update from Lulu's Fashion Lounge Holdings, Inc.
[{"type":"text","content":"CHICO, Calif., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial results for the third quarter ended October 2, 2022, and updated guidance for full year 2022. David McCreight, CEO of Lulus, said: “In the third quarter of 2022, we saw gains in several operational and customer metrics, including a record number of repeat customers transacting with us, as well as healthy year-over-year growth in Active Customers and Average Order Value – signaling that our brand is resonating with our customers. Like many in the industry, we saw lower net revenue growth from macroeconomic factors, including inflation, which we believe impacted customer spending and product returns behavior. Due to the macroenvironment, we increased our promotional cadence, which resonated with our customers but resulted in product margin compression. Our balance sheet remains strong, enabling us to continue to focus on delivering on our brand promise, delighting our customers, and growth strategies. However, in the near-term we believe it’s prudent to reduce our 2022 guidance range for the year given the macro uncertainties.” Third Quarter 2022 Highlights: Net revenue of $105.3 million, a 1.0% decrease compared to the same period last year, driven by a 1% decrease in Total Orders Placed with higher return rates offset by higher Average Order Value (“AOV”), net of promotions and discounts.Active Customers of 3.2 million, a 29.2% increase compared to the same period last year.AOV of $133, an increase of 6.4% compared to the same period last year.Gross Margin decreased 560 basis points to 42.1% and gross profit decreased 12.7%, in each case compared to the same period last year.Interest expense decreased by $3.3 million, a 91% decrease compared to the same period last year. The significant decrease is attributable to the repayment of our Term Loan with the proceeds from our IPO in November 2021.Net income of $0.9 million, a $2.9 million decrease compared to the same period last year.Adjusted EBITDA of $5.4 million, a 54.9% decrease compared to the same period last year. Thirteen Weeks Ended October 2, 2022 October 3, 2021 YoY Change (In thousands, except percentages)Net revenue $105,275 $106,320 (1.0)%Gross profit $44,333 $50,767 (12.7)%Gross Margin* 42.1% 47.7% (560)bpsNet income ...