Business
Lulus Reports First Quarter 2023 Results and Reaffirms Full Year 2023 Guidance
Net Revenue of $91 million, down 19% from First Quarter 2022, up 32% from First Quarter 2021 Grew Active Customers to 3.2 million, up 6% from First Quarter
About this update from Lulu's Fashion Lounge Holdings, Inc.
[{"type":"text","content":"Net Revenue of $91 million, down 19% from First Quarter 2022, up 32% from First Quarter 2021 Grew Active Customers to 3.2 million, up 6% from First Quarter 2022, up 67% from First Quarter 2021 CHICO, Calif., May 09, 2023 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial results for the first quarter ended April 2, 2023, and reaffirmed its full-year 2023 financial guidance. Crystal Landsem, CEO of Lulus, said: “We are pleased with our execution during the first quarter, making progress on key initiatives in support of our long-term strategies, driving future benefits in areas such as international growth, efficiencies in our distribution network, and product cost reductions. As expected, first quarter was impacted by a difficult comparison against a 62% year-over-year net revenue growth rate in the first quarter of 2022 which benefited from pent-up demand as our customers re-engaged with their social calendars following the easing of Covid restrictions. Like others, the continued challenging macroenvironment required us to be more promotional year-over-year, yet less promotional than in the fourth quarter of 2022. We remain confident in our business particularly as our flexible cost structure enables us to remain resilient during challenging macroeconomic environments as demonstrated by an approximately 12% year-over-year reduction in operating expenses, with continued prudent expense management. Lulus remains well positioned with a strong balance sheet and positive cash flow from operations, which enabled us to reduce our revolver balance during the first quarter and into the second quarter, and we believe ultimately gives us the flexibility to capture future growth opportunities.” First Quarter 2023 Highlights: Net revenue of $91.0 million, a 19% decrease compared to the same period last year, driven by a 14% decrease in Total Orders Placed and a 3% decrease in Average Order Value (“AOV”), net of higher promotions and discounts, along with higher return rates. Net revenue increased 32% from the first quarter 2021.Active Customers of 3.2 million, a 6% increase compared to the same period last year.AOV of $129, a decrease of 3% compared to $133 in the same period last year.Gross Margin decreased 560 basis points to 41.7% and gross profit decreased 28%, in e...