Financial Data and Key Metrics Changes - In Q1, net revenue was approximately $64.2 million, a decrease of 17% year over year, driven by a 17% decrease in total orders placed and a 5% decrease in average order value [24] - Gross margin for the quarter was 40.3%, down 200 basis points compared to the prior year, while product margin improved by 100 basis points [24] - The net loss for Q1 worsened to $8 million from $5.7 million in the same period last year, with adjusted EBITDA loss at approximately $4.7 million compared to a $2.7 million loss in Q1 2024 [25][26] - Free cash flow during Q1 was $7.8 million, reflecting a $1.8 million increase year over year, and net debt was reduced to $1.5 million, a $7.2 million reduction from the previous quarter [28] Business Line Data and Key Metrics Changes - The Special Occasion and Bridesmaids categories continued to drive healthy year-over-year net sales growth, while casualwear and footwear remained under pressure [7] - Wholesale revenue had triple-digit year-over-year growth, driven by growth among major partners and strong momentum in specialty retail [10] - Inventory management resulted in a 4% year-over-year inventory reduction, with product margins increasing sequentially for the second consecutive quarter [8][9] Market Data and Key Metrics Changes - Active customers increased quarter over quarter despite a year-over-year decline, reflecting the success of recent brand efforts [16] - The Love Rewards loyalty program membership continued to see double-digit growth, contributing to an overall increase in total membership [16] Company Strategy and Development Direction - The company is focused on strengthening its financial foundation, optimizing its business, and broadening its customer base through strategic initiatives [8] - A key focus area is SKU management, shifting towards deeper buys on a narrower, more curated SKU set supported by data insights [13] - The company is committed to maintaining positive cash flow and investing in long-term objectives to support a return to growth [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic environment and potential unstable consumer sentiment due to international trade policies and tariffs [13] - The company expects to generate positive adjusted EBITDA in Q2 and is committed to strengthening its liquidity position [30] - Despite macro headwinds, management remains confident in their strategies for sustainable growth and margin improvement [31] Other Important Information - The company executed a fourth amendment to its credit agreement, suspending the measurement of certain financial covenants for Q1 while pursuing alternative financing [28] - The recent pause on U.S.-China reciprocal tariffs has not changed the company's conviction around supply chain diversification and direct sourcing strategies [15] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions at this time, and the conference call concluded [33]

Financial Data and Key Metrics Changes - In Q1 2025, net revenue was approximately $64.2 million, a decrease of 17% year over year, driven by a 17% decrease in total orders placed and a 5% decrease in average order value [24] - Gross margin for the quarter was 40.3%, down 200 basis points compared to the prior year, although product margin improved by 100 basis points [24] - The net loss for Q1 worsened to $8 million from $5.7 million in the same period last year, with adjusted EBITDA loss at approximately $4.7 million compared to a $2.7 million loss in Q1 2024 [25][26] - Free cash flow during Q1 was $7.8 million, reflecting a $1.8 million increase year over year, and net debt was reduced to $1.5 million, a $7.2 million reduction from the previous quarter [28] Business Line Data and Key Metrics Changes - The Special Occasion and Bridesmaids categories continued to show positive momentum, driving healthy year-over-year net sales growth, while casualwear and footwear remained under pressure [6][10] - Inventory management resulted in a 4% year-over-year inventory reduction, with product margins increasing sequentially for the second consecutive quarter [8][9] - The Shoes and Separates businesses were a drag on overall results, accounting for most of the year-over-year decline in net sales [10] Market Data and Key Metrics Changes - Q1 revenue in Wholesale had triple-digit year-over-year growth, driven by continued growth among major partners and strong momentum in specialty retail [10] - Active customers increased quarter over quarter despite a year-over-year decline, reflecting the success of recent brand efforts [16] Company Strategy and Development Direction - The company is focused on strengthening its financial foundation, optimizing its business, and broadening its customer base through strategic initiatives [7][31] - A key focus area is SKU management, shifting towards deeper buys on a narrower, more curated SKU set supported by data insights [13] - The company is committed to maintaining positive cash flow and investing in long-term objectives to support a return to growth [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic environment and potential unstable consumer sentiment due to international trade policies and tariffs [13][31] - The company expects to generate positive adjusted EBITDA in Q2 2025 and is committed to strengthening its liquidity position [30] Other Important Information - The company executed a fourth amendment to its credit agreement with Bank of America, which suspended the measurement of certain financial covenants for Q1 [28] - The company is actively evaluating its sourcing plans to diversify its supply base and reduce reliance on China [14][15] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants during the Q&A session, leading to the conclusion of the conference call [34]

Financial Performance - Net revenue for Q1 2025 was $64.2 million, a 17% decrease compared to $77.3 million in Q1 2024, driven by a 17% decrease in total orders placed and a 5% decrease in average order value from $143 to $136[8]. - Gross profit decreased by 21% to $25.8 million, with gross margin decreasing by 200 basis points to 40.3% compared to the same period last year[8]. - Net loss for Q1 2025 was $8.0 million, compared to a net loss of $5.7 million in Q1 2024[8]. - Adjusted EBITDA was ($4.7) million, compared to ($2.7) million in the same period last year[8]. - Gross Margin for the thirteen weeks ended March 30, 2025, was 40.3%, down from 42.3% in the same period last year[29]. - Net loss for the thirteen weeks ended March 30, 2025, was $7,998,000, compared to a net loss of $5,736,000 for the same period in 2024[29]. - Adjusted EBITDA for the thirteen weeks ended March 30, 2025, was $(4,670,000), compared to $(2,659,000) in the prior year[29]. - Adjusted EBITDA Margin for the thirteen weeks ended March 30, 2025, was (7.3)%, compared to (3.4)% in the same period last year[29]. Customer Metrics - Active customers decreased by 8% to 2.6 million, down from 2.8 million in the same period last year[8]. - Active Customers decreased to 2,550,000 for the thirteen weeks ended March 30, 2025, down from 2,770,000 in the same period last year[29]. - Total Orders Placed is a key performance metric directly related to customer attraction and retention, although specific figures were not provided in the summary[27]. Cash Flow and Debt - Cash provided by operating activities increased by $1.4 million to $8.3 million compared to $6.9 million in Q1 2024[2]. - Free cash flow increased by $1.8 million to $7.8 million compared to $6.0 million in the same period last year[2]. - Total debt decreased by $3.0 million to $10.0 million, and net debt decreased by $7.2 million to $1.5 million during Q1 2025[2]. - Net Debt as of March 30, 2025, was $(1,474,000), a decrease from $(8,630,000) as of December 29, 2024[30]. Strategic Outlook - The company withdrew its full-year 2025 net revenue and Adjusted EBITDA outlook due to heightened uncertainty related to international trade policy and macroeconomic conditions[7]. - The company is focused on optimizing product margins and expanding strategic wholesale partnerships while managing costs effectively[3]. - The company plans to continue investing in new merchandise and promotional activities to drive customer engagement and sales[19].

Core Insights - Lulu's Fashion Lounge Holdings, Inc. reported significant improvements in liquidity, with a $1.4 million increase in cash provided by operating activities and a $1.8 million increase in free cash flow compared to Q1 2024 [1][2] - The company reduced total debt by $3.0 million and net debt by $7.2 million during Q1 2025 [1][2] - The company withdrew its net revenue and Adjusted EBITDA financial outlook for the fiscal year ending December 28, 2025, due to heightened uncertainty related to international trade policy and macroeconomic conditions [2][7] Financial Performance - Net revenue for Q1 2025 was $64.2 million, a 17% decrease compared to the same period last year, driven by a 17% decrease in total orders placed and a 5% decrease in average order value from $143 to $136 [8][10] - Active customers decreased by 8% to 2.6 million compared to 2.8 million in the same period last year [8][31] - Gross profit decreased by 21% to $25.8 million, with gross margin decreasing by 200 basis points to 40.3% [8][31] - The net loss for Q1 2025 was $8.0 million, compared to a net loss of $5.7 million in the same period last year [8][31] - Adjusted EBITDA was ($4.7) million, compared to ($2.7) million in the same period last year [8][31] Operational Highlights - The company successfully consolidated its West Coast distribution facilities and saw sequential monthly improvement in year-over-year net revenue comparisons [4][3] - Positive sales momentum was noted in occasion dresses, particularly in the bridesmaid category, although there was continued softness in casual wear and footwear [4][3] - The company is focused on cost efficiency, optimizing its business, and broadening its customer base [4][3] Cash Flow and Debt Management - Net cash provided by operating activities was $8.3 million, compared to $6.9 million in the same period last year [8][14] - Free cash flow was $7.8 million, compared to $6.0 million in the same period last year [8][34] - Total debt decreased to $10.0 million, and net debt decreased to $1.5 million during the thirteen weeks ended March 30, 2025 [8][33]

PART I FINANCIAL INFORMATION [Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the thirteen weeks ended March 30, 2025, show a decrease in net revenue and an increase in net loss compared to the prior year period, with substantial doubt about the company's ability to continue as a going concern [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, total assets increased to $114.3 million, total liabilities significantly rose to $107.8 million, and stockholders' equity decreased to $6.6 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $8,616 | $4,460 | | Inventory, net | $39,668 | $34,036 | | Total current assets | $62,727 | $51,501 | | Total assets | $114,341 | $108,198 | | **Liabilities & Equity** | | | | Revolving line of credit | $10,090 | $13,090 | | Total current liabilities | $91,751 | $74,325 | | Total liabilities | $107,789 | $94,830 | | Total stockholders' equity | $6,552 | $13,368 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the thirteen weeks ended March 30, 2025, net revenue decreased by 17% to $64.2 million, gross profit fell to $25.8 million, and the net loss widened to $8.0 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenue | $64,155 | $77,259 | | Gross profit | $25,841 | $32,646 | | Loss from operations | ($8,118) | ($6,158) | | Net loss | ($7,998) | ($5,736) | | Diluted loss per share | ($0.19) | ($0.15) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first thirteen weeks of 2025, net cash provided by operating activities increased to $8.3 million, while net cash used in investing and financing activities was $0.6 million and $3.6 million respectively, resulting in $8.6 million cash at period end Cash Flow Summary (in thousands) | Cash Flow Activity | Thirteen Weeks Ended March 30, 2025 | Thirteen Weeks Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,322 | $6,947 | | Net cash used in investing activities | ($567) | ($959) | | Net cash used in financing activities | ($3,599) | ($3,005) | | **Net increase in cash** | **$4,156** | **$2,983** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes disclose a going concern warning due to recurring losses and reliance on debt financing, multiple amendments to the credit facility, a stock repurchase program, and significant uncertainty regarding new U.S. trade tariffs - The company has concluded that there is substantial doubt about its ability to continue as a going concern, as management's plans to seek alternative debt financing are outside of its control and may not be effectively implemented within twelve months[36](index=36&type=chunk) - The company entered into a fourth amendment to its 2021 Credit Agreement on March 27, 2025, which provided limited covenant waivers, prohibited further borrowings, reduced the revolving commitment, and increased interest rates[74](index=74&type=chunk)[76](index=76&type=chunk) - On May 3, 2024, the Board authorized a **$2.5 million stock repurchase program** During Q1 2025, the company repurchased 242,068 shares for approximately **$0.2 million**, with **$1.8 million** remaining available under the program[52](index=52&type=chunk)[53](index=53&type=chunk) - Subsequent to the quarter end, the U.S. government announced significant tariffs, including a potential **145% on Chinese imports** While a 90-day agreement on May 12, 2025, reduced these tariffs to approximately **30%**, the potential impact on the company's results remains uncertain[125](index=125&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 17% decrease in Q1 2025 net revenue to lower orders and Average Order Value, resulting in a widened net loss and negative Adjusted EBITDA, while the company seeks alternative debt financing amid liquidity challenges Key Operating and Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Margin | 40.3% | 42.3% | | Net loss (in thousands) | ($7,998) | ($5,736) | | Adjusted EBITDA (in thousands) | ($4,670) | ($2,659) | | Active Customers (in thousands) | 2,550 | 2,770 | | Average Order Value | $136 | $143 | - Net revenue decreased by **$13.1 million (17%)** in Q1 2025 compared to Q1 2024, driven by a **17% decrease in Total Orders Placed** and a lower AOV[164](index=164&type=chunk) - General and administrative expenses decreased by **$3.1 million (15%)** due to reduced headcount from cost reduction measures, lower equity-based compensation, and decreased D&O insurance and legal fees[168](index=168&type=chunk) - The company has no further access to borrowings under its 2021 Credit Agreement and is actively seeking alternative debt financing These conditions raise **substantial doubt about the company's ability to continue as a going concern**[133](index=133&type=chunk)[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its exposure to market risk since its 2024 Annual Report on Form 10-K - There has been **no material change** in the company's exposure to market risk since its 2024 10-K filing[202](index=202&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 30, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[204](index=204&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[205](index=205&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business but does not believe any current matters will have a material adverse effect on its financial condition or results of operations - The company is not currently a party to any legal proceedings that it believes would **materially and adversely affect** its business or financial condition[207](index=207&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section highlights material changes to risk factors, focusing on the adverse impact of international trade disputes and tariffs, including recent developments with China, which could increase merchandise costs and negatively impact operating results - A significant portion of the company's merchandise is manufactured in countries like China and Mexico, making it **vulnerable to international trade disputes and tariffs**[209](index=209&type=chunk) - Recent tariff developments, including a global reciprocal tariff program announced on April 4, 2025, and a subsequent 90-day agreement with China on May 12, 2025, create **significant uncertainty** These tariffs could increase merchandise costs and negatively impact sales and profitability[209](index=209&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the thirteen weeks ended March 30, 2025, the company repurchased 242,068 shares of common stock for approximately $0.2 million under its 2024 Repurchase Program, with $1.77 million remaining available Common Stock Repurchases (Q1 2025) | Period | Total Shares Purchased | Weighted Average Price Paid Per Share | | :--- | :--- | :--- | | Dec 30, 2024 - Feb 2, 2025 | 178,484 | $1.02 | | Feb 3, 2025 - Mar 2, 2025 | 63,584 | $0.90 | | Mar 3, 2025 - Mar 30, 2025 | - | - | - All share repurchases were made under the **$2.5 million 2024 Repurchase Program** authorized on May 8, 2024[212](index=212&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) On April 28, 2025, the company amended its Non-Employee Director Compensation Program, eliminating the Board Chair's annual RSU award for an increased cash retainer, and subsequently approved a one-time cash payment to eligible non-employee directors in lieu of their 2025 RSU awards to reduce share dilution - The Non-Employee Director Compensation Program was amended to eliminate the Board Chair's annual RSU award and increase the cash retainer to **$75,000**, among other changes[215](index=215&type=chunk) - To mitigate share dilution, the Board approved a **one-time $50,000 cash payment** to each eligible non-employee director instead of the **$100,000 annual RSU award** for fiscal year 2025[217](index=217&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to the credit agreement and non-employee director compensation program, lease agreements, and officer certifications - Key exhibits filed include the **Fourth Amendment to the Credit Agreement**, the **Fourth Amendment to the Non-Employee Director Compensation Program**, and **CEO/CFO certifications**[221](index=221&type=chunk)

Company Announcement - Lulu's Fashion Lounge Holdings, Inc. will release its first quarter 2025 financial results on May 14, 2025, after market close [1] - A conference call and live webcast will be held at 5:00 p.m. Eastern Time on the same day for the investment community [1] Access Information - The financial results and live webcast will be available through the Investor Relations section of the Company's website [2] - To access the conference call, U.S. callers can dial 1-877-407-0792, while international callers can use 1-201-689-8263 [2] Replay Details - A replay of the conference call will be available shortly after the call for seven days [3] - U.S. callers can access the replay by dialing 1-844-512-2921, and international callers can use 1-412-317-6671 with access code 13752976 [3] Company Overview - Lulus is an attainable luxury fashion brand for women, headquartered in California, serving millions of customers worldwide [4] - The brand focuses on modern, feminine designs at accessible prices for various occasions, aiming to make every woman feel confident [4] - Founded in 1996, Lulus utilizes direct consumer feedback to refine product offerings and enhance customer experience [4]

Investors might want to bet on Lulu's Fashion Lounge Holdings, Inc. (LVLU) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. ...

Core Insights - Lulus Fashion Lounge Holdings, Inc. has released its first-ever Spring 2025 Wedding Trend Report, highlighting key shifts in wedding attire based on internal sales data, customer surveys, and on-site search behavior [1][4] - The report indicates a significant evolution in wedding fashion, with brides and guests seeking more personalized and expressive styles, moving away from traditional, uniform looks [2][3] Group 1: Trends in Wedding Fashion - Weddings are now seen as multi-event fashion experiences, with brides curating wardrobes for various events leading up to the wedding and even during the honeymoon [11] - The report reveals a dramatic shift towards versatile, ultra-feminine, and event-specific wedding attire, with brides favoring elegant slip dresses and bridesmaids embracing mix-and-match styles [2][6] - Searches for "wedding dress" on Lulus.com have surged by 258%, indicating a growing interest in Lulus as a destination for wedding attire [8] Group 2: Key Fashion Trends - Bridal trends are characterized by sheer and effortless designs, with a notable rise in slip dresses (+107%) and draped cowl necklines (+250%) [7][8] - Bridesmaids are increasingly opting for tiered gowns (+110%) and plissé fabrics (+143%), with pastel shades like sage green (+89%) and purple (+53%) gaining popularity [7][14] - Wedding guests are making bold fashion statements, with dramatic black maxis and floral prints dominating the scene [10][14] Group 3: Influencing Factors - The demand for affordable luxury is a top priority, with shoppers seeking stylish, high-quality wedding attire at accessible price points [3][12] - Social media platforms like TikTok and Instagram are reshaping wedding fashion trends, influencing how consumers shop for wedding attire [12][14] - Celebrity influences, such as Hailey Bieber's and Alex Cooper's styles, are shaping modern bridal trends [12][14] Group 4: Upcoming Initiatives - Lulus is set to launch an exclusive, limited-edition wedding and event wear collection in collaboration with Australian brand Elliatt in April, further expanding its footprint in the wedding attire market [12][14]

Lulu's Fashion Lounge (LVLU) Q4 2024 Earnings Call March 28, 2025 01:10 AM ET Company Participants Naomi Beckman-Straus - General Counsel & Corporate SecretaryCrystal Landsem - CEO and DirectorMark Vos - President & Chief Information OfficerTiffany Smith - CFO Operator Good afternoon, and welcome to Lulu's Fourth Quarter and Fiscal Year twenty twenty four Earnings Conference Call. Today's call is being recorded and we have allocated one hour for the prepared remarks and Q and A. At this time, I'd like to tu ...

Financial Data and Key Metrics Changes - Q4 net revenue was approximately $66.1 million, down 12% year-over-year, driven by a 12% decrease in total orders placed and a 5% decrease in average order value [44] - For the full year, net revenue totaled $315.9 million, down 11% versus 2023, primarily due to a 12% decline in total orders placed and higher return rates, partially offset by a 3% increase in average order value [44] - Gross margin for Q4 was 37.9%, down 120 basis points year-over-year, impacted by higher markdowns and discounts [45] - Net loss for Q4 worsened to $31.9 million from $7.2 million year-over-year, reflecting a noncash $28.4 million goodwill impairment charge [46] - Adjusted net loss for Q4 was $3.5 million, representing a more than 50% reduction in net loss compared to Q4 of last year [47] Business Line Data and Key Metrics Changes - Special occasion and bridesmaids categories delivered positive mid-teens year-over-year net sales growth in Q4, reinforcing market leadership [19] - Q4 wholesale revenue grew 76% year-over-year, driven by high double-digit gains among major partners [22] - Casual wear segment continued to experience softness, leading to year-over-year net sales declines [16] Market Data and Key Metrics Changes - International presence showed strong year-over-year growth in Q4, marking fiscal year 2024 as a high double-digit international growth year [29] - Return rates improved for the second consecutive quarter, highlighting material improvements in fit and quality [21] Company Strategy and Development Direction - The company is focusing on core strengths as a premier destination for occasion dresses while optimizing cost structures [10] - Strategic initiatives include product assortment optimization, brand engagement investments, and technology enablement [10][12] - Plans to mitigate tariff impacts through diversified sourcing and pricing adjustments [15][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties in 2025 but is focused on positioning the business for success [13] - Full year guidance for 2025 anticipates net revenue between $280 million and $310 million, reflecting potential macroeconomic pressures [54] - Adjusted EBITDA outlook for 2025 is expected to be between $0 and $6 million, indicating a potential improvement from 2024 [56] Other Important Information - The company successfully consolidated two distribution facilities, enhancing operational efficiency [42] - Inventory balance at quarter end was $34 million, down about $1.4 million year-over-year, reflecting disciplined inventory management [52] Q&A Session Summary Question: What are the expectations for revenue in 2025? - The company anticipates net revenue to be between $280 million and $310 million, reflecting potential macroeconomic pressures and stable demand [54] Question: How is the company addressing tariff impacts? - The company plans to mitigate tariff impacts through diversified sourcing and pricing adjustments, while maintaining product quality [35] Question: What are the key initiatives for improving profitability? - Key initiatives include cost reduction measures, product assortment optimization, and investments in brand awareness and technology [10][56]