CHICO, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today announced the appointment of Heidi Crane as its permanent Chief Financial Officer (“CFO”), effective February 4, 2026. Ms. Crane previously served as the Company’s fractional CFO since October 13, 2025. “We’re thrilled to have Heidi officially join our team as permanent CFO,” said Crystal Landsem, CEO of Lulus. “After working closely with us in a fractional capacity, Heidi ha ...

Expansion signals strong in-store performance, retailer confidence, and growing demand for Lulus’ occasionwear as the brand enters its 30th year CHICO, Calif., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Lulu's Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU), the attainable luxury fashion brand for life’s most memorable moments, today announced its expansion into all Nordstrom stores nationwide, a major milestone in its wholesale growth. The nationwide rollout reflects strong in-store performa ...

Core Viewpoint - Friedland Enterprises has acquired approximately 5% of Lulu's Fashion Lounge Holdings, Inc. and is advocating for immediate governance reforms to enhance shareholder value [1]. Financial Performance - Lulu's Fashion Lounge Holdings has achieved two consecutive quarters of positive Adjusted EBITDA and expanded gross margins by over 450 basis points [2]. - The stock is currently trading at approximately 0.05x trailing revenue, significantly lower than comparable company REVOLVE Group, which trades at 1.35x revenue, indicating a 27x valuation gap [2]. Governance and Strategic Proposals - Mr. Friedland emphasizes the need for governance reform, transparency, and strategic direction to complement the operational turnaround already in progress [3][5]. - The proposed eight-point value creation plan includes: - Reducing authorized shares from 250 million to 10 million to eliminate dilution concerns [7]. - Reconstituting the Board of Directors to remove underperforming members and add those with relevant expertise [7]. - Suspending cash board compensation until stock reaches $10 per share and implementing performance-based equity compensation [7]. - Returning founder Colleen Winter to the Board with merchandising authority [7]. - Hiring a permanent Chief Financial Officer within 120 days [7]. - Replacing the investor relations function and launching quarterly investor presentations with detailed KPIs [7]. - Forming an independent Special Committee to evaluate strategic alternatives, including potential sale or merger scenarios [7]. Leadership Background - Mr. Christian Friedland, founder of Friedland Enterprises, has extensive experience in consumer e-commerce operations and public company governance, having served as CEO of Build.com for 17 years [6].

Core Points - Lulu's Fiscal Third Quarter 2025 results were discussed during the earnings conference call [2] - The call included forward-looking statements regarding management's expectations and strategies for growth [3] Financial Outlook - The company provided insights into its financial outlook for the fourth quarter and fiscal year 2025 [3] - Expectations around the impact of the macroeconomic environment, including tariffs and consumer demand, were highlighted [3] Growth Opportunities - Management discussed opportunities for growth in the coming quarter and the long-term growth trajectory of the business [3] - Initiatives such as technology enablement and personalized shopping were mentioned as part of the company's strategy [3]

Financial Data and Key Metrics Changes - In Q3 2025, net revenue was approximately $73.6 million, a decrease of 9% year-over-year, driven by a 14% decrease in total orders placed, partially offset by an 8% increase in average order value [25] - Gross margin for the quarter was 42.6%, up 450 basis points year-over-year due to improvements in product-related margins and a higher mix of full-price sales [26] - The net loss for Q3 improved to $2.3 million from a $6.9 million loss in the same period last year, driven by a $0.7 million improvement in gross profit and a $4.2 million reduction in operating expenses [27] - Q3's adjusted EBITDA was approximately $0.4 million positive compared to a $3.6 million loss in Q3 2023, marking a $3.9 million improvement year-over-year [27] Business Line Data and Key Metrics Changes - Special occasion and bridesmaids categories continue to outperform, contributing to year-over-year net sales growth, while casual wear and footwear assortments are being realigned towards a more curated event-focused assortment [8][9] - Product margins improved for the fourth consecutive quarter, reflecting a 500 basis point increase compared to the prior year period [11] - The wholesale business achieved triple-digit, seven-figure year-over-year growth, expanding to six major retailers in Q3 [13] Market Data and Key Metrics Changes - The company observed a three-year CAGR of 6.7% in special occasion product classes year-to-date, with a 9.5% CAGR in Q3 2025, indicating growth acceleration [10] - Return rates improved 110 basis points from Q2, highlighting the impact of improved fit and quality efforts [12] Company Strategy and Development Direction - The company is focused on optimizing its core business while navigating a dynamic macro environment, with a strategic decision to reset merchandising strategy in casual apparel and shoes [14][15] - Cost reduction initiatives have led to an 11% decline in OPEX year-over-year, with fixed costs down 18% [17] - The company aims to enhance performance and drive sustained, profitable long-term growth through process optimization and operational efficiency [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the event attire strategy and the strength of the attainable luxury value proposition, despite challenges in casual wear and footwear [8] - The company expects top-line pressure from casual apparel and shoes to moderate towards the end of Q2 2026, allowing for more meaningful revenue improvements [16] - Management remains committed to maintaining positive year-to-date cash flow and investing in long-term objectives to support growth [31] Other Important Information - The company entered into a credit agreement with White Oak Commercial Finance, enhancing its liquidity position and financial flexibility [9] - Free cash flow during Q3 was negative $2.4 million, reflecting a $3.9 million improvement year-over-year [29] - The company is actively executing a multifaceted strategy to mitigate tariff-related costs through vendor collaboration and diversified sourcing [30] Q&A Session Summary Question: No questions were asked during the Q&A session - The session concluded with no questions in the queue, indicating a lack of inquiries from participants [32]

Financial Performance - Net revenue for the thirteen weeks ended September 28, 2025, was $73,591,000, a decrease of 8.5% compared to $80,515,000 for the same period in 2024[23]. - Gross profit for the thirty-nine weeks ended September 28, 2025, was $94,133,000, down 10.6% from $105,178,000 in the prior year[23]. - The company reported a net loss of $2,317,000 for the thirteen weeks ended September 28, 2025, compared to a net loss of $6,879,000 for the same period in 2024, indicating an improvement[23]. - For the thirty-nine weeks ended September 28, 2025, the net loss was $13.31 million, a decrease from the net loss of $23.41 million for the same period in 2024, representing a 43.5% improvement[30]. - The net loss for the thirteen weeks ended September 28, 2025, was $2.3 million, a significant improvement from a net loss of $6.9 million in the same period of 2024[134]. - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $364,000, compared to a loss of $3.6 million in the same period of 2024[134]. - Net revenue for the thirty-nine weeks ended September 28, 2025, decreased by $30.5 million, or 12%, compared to the same period in the prior year[170]. - Gross profit decreased by $11.0 million, or 11%, for the thirty-nine weeks ended September 28, 2025, primarily driven by lower sales volume[172]. Assets and Liabilities - Total current assets increased to $55,757,000 as of September 28, 2025, from $51,501,000 as of December 29, 2024, reflecting a growth of 8.7%[20]. - Total liabilities rose to $100,823,000 as of September 28, 2025, compared to $94,830,000 as of December 29, 2024, marking an increase of 6.5%[20]. - The company’s total stockholders' equity decreased to $2,519,000 as of September 28, 2025, from $13,368,000 as of December 29, 2024, a decline of 81.2%[20]. - The company reported total equity of $2.52 million as of September 28, 2025, down from $43.77 million as of September 29, 2024, indicating a significant decline in stockholders' equity[27]. - The net property and equipment as of September 28, 2025, is $2,649,000, down from $3,642,000 as of December 29, 2024[74]. Cash Flow and Financing - Cash provided by operating activities was $5.15 million for the thirty-nine weeks ended September 28, 2025, slightly up from $5.13 million in the prior year[30]. - The company experienced a net cash used in financing activities of $6.04 million for the thirty-nine weeks ended September 28, 2025, compared to a net cash provided of $1.08 million in the same period of 2024[30]. - Cash and cash equivalents at the end of the period were $1.94 million, a decrease from $6.31 million at the end of the same period in 2024, marking a decline of 69%[30]. - The company entered into a 2025 Credit Agreement with a $20.0 million commitment, bearing interest at the 30-day SOFR rate plus 3.95%[79]. - As of September 28, 2025, outstanding borrowings under the 2025 Credit Agreement were $9.2 million, with unused availability of $6.8 million[188]. - The company repurchased common stock amounting to $886,000 during the thirty-nine weeks ended September 28, 2025, compared to $276,000 in the same period of 2024[30]. Expenses - Selling and marketing expenses for the thirty-nine weeks ended September 28, 2025, were $54,843,000, down 8.8% from $60,231,000 in the previous year[23]. - General and administrative expenses decreased by $3.5 million, or 18%, for the thirteen weeks ended September 28, 2025, primarily due to a reduction in fixed labor and benefits costs[167]. - Interest expense increased by $0.2 million, or 79%, for the thirteen weeks ended September 28, 2025, primarily due to higher average borrowings[168]. - The company incurred equity-based compensation expenses of $3.58 million for the thirty-nine weeks ended September 28, 2025, compared to $6.15 million in the same period of 2024, reflecting a 41% decrease[30]. Customer and Market Insights - Active customers as of September 28, 2025, were 2,380, consistent with the previous year, while the average order value increased to $141 from $131[134]. - The company has taken pricing and promotional actions in response to changing macroeconomic factors affecting consumer spending[131]. - The company experienced moderate seasonal fluctuations in sales volume, with net revenue typically highest in the second and third quarters[177]. Governance and Compliance - The company has alleviated substantial doubt about its ability to continue as a going concern by entering into a Loan and Security Agreement with White Oak Commercial Finance, LLC[37]. - The Chief Executive Officer concluded that the company's disclosure controls and procedures were effective as of September 28, 2025[211]. - There were no changes in the internal control over financial reporting during the quarter ended September 28, 2025, that materially affected the internal control[212]. - The company does not believe that the outcome of various legal proceedings will have a material adverse effect on its business or financial condition[214]. Accounting and Reporting - The company plans to adopt new accounting standards issued by FASB in the fourth quarter of fiscal 2025, which are not expected to have a material impact on financial statements[63][64]. - The company has not made significant changes to its critical accounting policies and estimates as disclosed in the 2024 10-K[205]. - There has been no material change in the company's exposure to market risk from that discussed in the 2024 10-K[209].

Core Insights - The company reported a net loss improvement of $4.6 million in Q3 2025 compared to Q3 2024, indicating ongoing operational and financial improvement [1] - Positive adjusted EBITDA of $0.4 million was achieved in Q3 2025, an increase of $3.9 million compared to Q3 2024 [1] - Gross profit increased by 2% in Q3 2025 compared to the same period last year [1] Financial Performance - Net revenue for Q3 2025 was $73.6 million, a 9% decrease from $80.5 million in Q3 2024, driven by a 14% decrease in total orders placed, partially offset by an 8% increase in average order value from $131 to $141 [8] - Active customers decreased by 11% to 2.4 million compared to 2.7 million in the same period last year [8] - Gross profit for Q3 2025 was $31.4 million, with a gross margin of 42.6%, an increase of 450 basis points from the prior year [8] Operational Highlights - The CEO emphasized the company's strategic priorities, including strengthening core business areas and optimizing product offerings, particularly in special occasion and bridesmaid categories [3] - The company is actively repositioning its casual wear and footwear categories while focusing on assortment optimization and cost efficiency [4] - The refined reorder pipeline has shown positive traction, contributing to improved gross and product margins, which increased over 400 basis points year-over-year [3] Cash Flow and Capital Expenditures - Year-to-date free cash flow for 2025 was $3.5 million, compared to $2.7 million in the same period last year [8] - The company reaffirmed its full-year 2025 capital expenditures estimate of approximately $2.5 million [8] Future Outlook - The company expects significant year-over-year improvement in adjusted EBITDA for Q4 2025, aligning with its strategic goals [8] - The financial outlook considers potential headwinds such as tariffs, consumer demand, and macroeconomic uncertainties [7][9]

Financial Performance - Net revenue for Q3 2025 was $73.6 million, a 9% decrease compared to $80.5 million in Q3 2024, driven by a 14% decrease in total orders placed[8] - Gross profit increased by 2% to $31.4 million, with gross margin improving by 450 basis points to 42.6% compared to the same period last year[8] - Net loss improved to $2.3 million in Q3 2025, compared to a net loss of $6.9 million in Q3 2024[8] - Adjusted EBITDA was $0.4 million, a significant improvement from a loss of $3.6 million in the same period last year[8] - Year-to-date free cash flow reached $3.5 million, up from $2.7 million in the same period last year[8] - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $364,000, a significant improvement from a loss of $3,572,000 in the same period in 2024[29] - Adjusted EBITDA Margin for the thirteen weeks ended September 28, 2025, was 0.5%, an improvement from -4.4% in the same period in 2024[31] - Free Cash Flow for the thirteen weeks ended September 28, 2025, was $(2,394,000), compared to $(6,296,000) for the same period in 2024[32] Customer Metrics - Active customers decreased by 11% to 2.4 million from 2.7 million in the same period last year[8] - Active Customers decreased to 2,380 for the thirty-nine weeks ended September 28, 2025, down from 2,670 in the same period in 2024[29] - Average Order Value (AOV) increased to $141 for the thirteen weeks ended September 28, 2025, compared to $131 for the same period in 2024[29] Strategic Focus - The company expects significant year-over-year improvement in Adjusted EBITDA for Q4 2025[8] - The company is focused on optimizing its casual wear and footwear categories, aiming for cost efficiency and strengthening its market position[4] - The company continues to focus on strategic priorities and long-term growth opportunities, as indicated in the forward-looking statements[17] Financial Structure - A new credit agreement has been established, contributing to a leaner cost structure and an improving balance sheet[4] - The company reaffirms its full-year 2025 capital expenditures estimate of approximately $2.5 million[8] - Net Debt as of September 28, 2025, was $(7,256,000), a decrease from $(8,630,000) as of December 29, 2024[30] Performance Metrics - Gross Margin for the thirteen weeks ended September 28, 2025, was 42.6%, compared to 38.1% for the same period in 2024[29] - Total Orders Placed is a key performance metric directly related to customer attraction and retention, although specific numbers were not provided in the content[26] - The company utilizes non-GAAP financial measures to evaluate operating performance and liquidity, which may differ from other companies' measures[18]

Core Viewpoint - Lulu's Fashion Lounge Holdings, Inc. will release its third quarter 2025 financial results on November 12, 2025, after market close, followed by a conference call at 5:00 p.m. Eastern Time [1] Financial Results Announcement - The financial results and live webcast will be accessible through the Investor Relations section of the Company's website [2] - A replay of the conference call will be available for seven days after the call [3] Company Overview - Lulus is an attainable luxury fashion brand for women, offering modern designs at accessible prices for various occasions [4] - Founded in 1996, Lulus focuses on customer feedback to refine product offerings and enhance the customer experience [4] - The Company provides exceptional customer service through personal stylists and a bridal concierge [4]

Core Insights - Lulu's Fashion Lounge Holdings, Inc. has appointed Heidi Crane as its fractional Chief Financial Officer, effective October 13, 2025, to lead the company's financial strategy focusing on growth, operational efficiency, and long-term shareholder value [1][2][3] Company Overview - Lulus is a California-based attainable luxury fashion brand for women, offering modern and feminine designs at accessible prices, aiming to make women feel confident for various occasions [4] - Founded in 1996, Lulus utilizes direct consumer feedback to refine its product offerings and enhance customer experience, serving millions of customers globally [4] Leadership Experience - Heidi Crane brings over 17 years of CFO experience in private equity and venture-backed consumer brands, having previously led finance teams at companies like FightCamp and BH Cosmetics [3] - Crane holds an M.B.A. from UCLA Anderson School of Management and a B.S. in Business Administration from California State University, Long Beach, and is a licensed CPA [3]