Lulu's Fashion Lounge Holdings, Inc. (NASDAQ:LVLU) Q3 2023 Earnings Conference Call November 8, 2023 5:00 PM ET Company Participants Naomi Beckman-Straus - General Counsel & Corporate Secretary Crystal Landsem - CEO Tiffany Smith - CFO Mark Vos - President & CIO Conference Call Participants Brooke Roach - Goldman Sachs Amy Teske - Baird Ethan Saghi - BTIG Dana Telsey - Telsey Advisory Group Operator Good afternoon, and welcome to Lulu's third quarter 2023 earnings conference call. Today's call is being reco ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-41059 Lulu's Fashion Lounge Holdings, Inc. (Exact Name of Registrant ...

Financial Data and Key Metrics Changes - The company reported net revenue of $106 million for Q2 2023, a 19% decline year-over-year, primarily due to lower top-line demand and higher-than-expected return rates [26][58] - Gross margins for Q2 2023 were 44.7%, down 110 basis points year-over-year but improved sequentially by 300 basis points from Q1 2023 [28][26] - Adjusted EBITDA for Q2 2023 was $4.2 million, compared to $14.8 million in Q2 2022, reflecting lower demand and higher returns [33][65] - The company ended the quarter with cash of approximately $6 million and net debt of roughly $9 million, expecting to reduce net debt to less than $5 million by year-end [34][41] Business Line Data and Key Metrics Changes - Active customer count decreased to 3.1 million at the end of Q2 2023, down 5% from Q2 2022 and 3% from Q1 2023 [60][13] - The company observed a higher return rate in Q2, attributed to a shift in product mix towards items like dresses, which typically have higher return rates [19][27] Market Data and Key Metrics Changes - The competitive environment has intensified, particularly at entry price points, but the company aims to maintain its focus on attainable luxury products rather than competing in fast fashion [3][4] - The company is adapting to macroeconomic pressures, including inflation and student loan repayments, which are expected to impact discretionary spending among its target demographic [4][72] Company Strategy and Development Direction - The company is shifting marketing spend from performance marketing to brand awareness to enhance customer engagement and brand positioning [14][68] - A new retail location on Melrose Avenue in Los Angeles is being opened to enhance in-person customer engagement and test the physical retail model [69][70] - The company is diversifying its global carrier networks to optimize shipping costs and improve customer experience [67][66] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing volatility in consumer demand due to macroeconomic factors, leading to a reduction in full-year 2023 guidance [72][38] - The company remains focused on managing costs and driving efficiencies while investing in long-term growth opportunities [61][72] Other Important Information - The company is leveraging AI across various business aspects, including customer lifetime value and inventory optimization, to enhance competitive advantage [23][24] - The company plans to invest between $5 million and $6 million in capital expenditures for the year, focusing on distribution center automation and new retail locations [43][42] Q&A Session Summary Question: Update on competitive environment and consumer engagement - Management acknowledged increased competition, particularly at lower price points, but emphasized a focus on attainable luxury products [3] Question: Details on revenue guidance and macro assumptions - Management highlighted the impact of student loan repayments on discretionary spending and adjusted revenue guidance accordingly [4] Question: Gross margin expectations for the back half of the year - Management expects gross margins to improve year-over-year in Q3 and Q4 due to shipping cost rationalization [9] Question: Insights on customer behavior and product performance - Management noted a gradual improvement in year-over-year revenue comparisons throughout Q2, with a focus on novelty and newness in product offerings [77][79] Question: International market opportunities - Management indicated that international sales are currently small but present significant growth potential as barriers are removed [82][85]

Table of Contents Commission File Number: 001-41059 Lulu's Fashion Lounge Holdings, Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 2, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ (Exact Name of Registrant as ...

Lulu's Fashion Lounge Holdings, Inc. (NASDAQ:LVLU) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET Company Participants Naomi Beckman-Straus - General Counsel & Corporate Secretary Crystal Landsem - CEO Mark Vos - President & Chief Information Officer Tiffany Smith - CFO David McCreight - Executive Chairman Conference Call Participants Edward Yruma - Piper Sandler Brooke Roach - Goldman Sachs Jungwon Kim - TD Cowen Alice Xiao - Bank of America Operator Good afternoon, and welcome to Lulu's First Q ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 2, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-41059 Lulu's Fashion Lounge Holdings, Inc. (Exact Name of Registrant a ...

Lulu's Fashion Lounge Holdings, Inc. (NASDAQ:LVLU) Q4 2022 Earnings Conference Call March 14, 2023 5:00 PM ET Company Participants Naomi Beckman-Straus - General Counsel & Corporate Secretary David McCreight - Executive Chairman Crystal Landsem - CEO Tiffany Smith - CFO Mark Vos - President & Chief Information Officer Conference Call Participants Brooke Roach - Goldman Sachs Group Janine Stichter - BTIG Mark Altschwager - Robert W. Baird & Co. Randal Konik - Jefferies Noah Zatzkin - KeyBanc Capital Markets ...

Financial Data and Key Metrics Changes - The company generated revenues of $105 million, a slight decrease of 1% or $1 million compared to the same period last year [41][42] - Adjusted EBITDA for the third quarter was $5.4 million, down from $11.9 million in the same period in 2021, with an adjusted EBITDA margin of 5.1% compared to 11.2% in the previous year [52] - Gross margins fell about 560 basis points to 42.1%, primarily due to higher discounting and increased shipping costs [44] Business Line Data and Key Metrics Changes - Active customer count increased by 29% year-over-year to 3.2 million [41] - Average order value rose by 6% to $133, reflecting an increase in units per transaction [42] - The company experienced elevated return levels, particularly in formal wear and event dressing categories, which typically have higher return rates [43] Market Data and Key Metrics Changes - The apparel industry is experiencing increased promotional activity, impacting the company's pricing strategies [30] - Consumer behavior showed volatility, with a deceleration in order frequency across all income segments [33][130] - The company noted that all household income segments responded favorably to promotions, indicating broad brand appeal [35][130] Company Strategy and Development Direction - The company plans to reduce revenue and adjusted EBITDA guidance due to macroeconomic uncertainties, now expecting revenues of $425 million to $440 million [25][59] - The leadership transition is aimed at ensuring a successful handoff to the next generation, with Crystal Landsem set to become CEO [12][40] - The company emphasizes a data-driven approach to inventory management and customer acquisition, focusing on maintaining a strong balance sheet [24][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the company's long-term growth potential [23][25] - The company views current challenges as part of a temporary economic cycle and remains committed to profitable growth [23] - Management expects Q4 to continue being promotional, with a cautious approach to inventory and marketing strategies [81][82] Other Important Information - The company ended the quarter with cash of $12.5 million and net debt of approximately $2.5 million [54] - Inventory levels increased to $49.4 million, up $26 million from the previous year, as part of a strategy to hedge against inflation and supply chain issues [54][56] - The company reported a diluted earnings per share of $0.02 compared to $0.13 in the third quarter of 2021 [51] Q&A Session Summary Question: Promotional environment and inventory management - Management indicated that they are comfortable carrying over spring/summer inventory into next year, as 70% of revenue typically comes from reorder products [73] - The cost of customer acquisition remains stable, attributed to a data-driven marketing approach [74] Question: Q4 promotional cadence and markdowns - Management expects to be more surgical in their promotional approach for Q4, leveraging data to optimize customer acquisition [81][82] Question: Inventory progression and robotics impact - The company is taking a data-driven approach to inventory management, aiming for a balanced inventory level to mitigate risks [92] - Robotics implementation is expected to reduce variable costs and enhance margins over time [99] Question: Differences in consumer behavior - Consumer behavior has been consistent across income levels, with a slight reduction in order frequency noted [130] Question: Performance of special occasion versus everyday clothing - The company continues to perform well in the event and special occasion categories, while everyday clothing has seen a pullback in demand [135]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 2, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-41059 Lulu's Fashion Lounge Holdings, Inc. (Exact Name of Registrant ...

Lulu's Fashion Lounge Holdings, Inc. (NASDAQ:LVLU) Q2 2022 Earnings Conference Call August 17, 2022 5:00 PM ET Company Representatives David McCreight - Chief Executive Officer Crystal Landsem - Co-President, Chief Financial Officer Mark Vos - Co-President, Chief Information Officer Naomi Beckman-Straus - General Counsel Conference Call Participants Randy Konik - Jefferies Oliver Chen - Cowen Dana Telsey - Telsey Advisory Group Edward Yruma - Piper Sandler Mark Altschwager - Baird Noah Zatzkin - KeyBanc Bro ...