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Lulu's Fashion Lounge (LVLU) - 2025 Q3 - Quarterly Results
LVLULulu's Fashion Lounge (LVLU)2024-11-13 21:05

Financial Performance - Third quarter 2024 net revenue was 80.5million,adecreaseof380.5 million, a decrease of 3% from 83.1 million in the same period last year, driven by a 3% decrease in total orders placed and a 2% decrease in average order value from 133to133 to 131 [4]. - Gross profit decreased by 9% to 30.6million,withgrossmargindecliningby220basispointsto38.130.6 million, with gross margin declining by 220 basis points to 38.1% compared to the same period last year [4]. - The company reported a net loss of 6.9 million, compared to a net loss of 3.9millioninthesameperiodlastyear[4].−Fourthquarter2024netrevenueisexpectedtobebetween3.9 million in the same period last year [4]. - Fourth quarter 2024 net revenue is expected to be between 67.5 million and 70.0million,downfrom70.0 million, down from 75 million in the same period last year [6]. - Full year 2024 net revenue is projected to be between 317.5millionand317.5 million and 320 million, compared to 355.2millioninfiscalyear2023[6].−Forthethirty−nineweeksendedSeptember29,2024,thenetlosswas355.2 million in fiscal year 2023 [6]. - For the thirty-nine weeks ended September 29, 2024, the net loss was 23,411,000 compared to a net loss of 12,104,000forthesameperiodin2023,representinga93.512,104,000 for the same period in 2023, representing a 93.5% increase in losses [14]. - Adjusted EBITDA for the thirty-nine weeks ended September 29, 2024, was (6,438,000), a decrease from 5,207,000forthesameperiodin2023,indicatingasignificantdeclineinoperationalperformance[28].−Thegrossmarginforthethirty−nineweeksendedSeptember29,2024,was38.15,207,000 for the same period in 2023, indicating a significant decline in operational performance [28]. - The gross margin for the thirty-nine weeks ended September 29, 2024, was 38.1%, down from 42.4% for the same period in 2023, reflecting a decrease of 4.3 percentage points [28]. - Net loss for the thirteen weeks ended September 29, 2024, was (6,879) thousand, compared to (3,889)thousandforthesameperiodin2023[30].−AdjustedEBITDAforthethirteenweeksendedSeptember29,2024,was(3,889) thousand for the same period in 2023 [30]. - Adjusted EBITDA for the thirteen weeks ended September 29, 2024, was (3,572) thousand, a decrease from 972thousandintheprioryear[30].−FreeCashFlowforthethirteenweeksendedSeptember29,2024,was972 thousand in the prior year [30]. - Free Cash Flow for the thirteen weeks ended September 29, 2024, was (6,296) thousand, significantly lower than 11,558thousandinthesameperiodlastyear[32].−NetlossmarginforthethirteenweeksendedSeptember29,2024,was(8.5)11,558 thousand in the same period last year [32]. - Net loss margin for the thirteen weeks ended September 29, 2024, was (8.5)%, compared to (4.7)% in the prior year [30]. - Adjusted EBITDA margin for the thirteen weeks ended September 29, 2024, was (4.4)%, down from 1.2% in the same period last year [30]. Customer Metrics - Active customers decreased by 10% to 2.7 million compared to 3.0 million in the same period last year, remaining flat compared to the second quarter of 2024 [4]. - Active customers decreased to 2,670 for the thirty-nine weeks ended September 29, 2024, down from 2,960 in the same period of 2023, indicating a decline in customer engagement [28]. - Average Order Value (AOV) for the thirty-nine weeks ended September 29, 2024, was 131, slightly down from 133inthesameperiodof2023[28].CashFlowandDebt−Freecashflowforthethirdquarterwas(133 in the same period of 2023 [28]. Cash Flow and Debt - Free cash flow for the third quarter was (6.3) million, compared to 11.6millioninthesameperiodlastyear[4].−Netcashprovidedbyoperatingactivitieswas11.6 million in the same period last year [4]. - Net cash provided by operating activities was 5,133,000 for the thirty-nine weeks ended October 1, 2023, compared to a net cash provided of 21,100,000inthepreviousyear,showingadecreaseof75.721,100,000 in the previous year, showing a decrease of 75.7% [14]. - The total debt as of September 29, 2024, was 11,500,000, with net cash (debt) of (5,192,000)afteraccountingforcashandcashequivalentsof(5,192,000) after accounting for cash and cash equivalents of 6,308,000 [29]. - Net cash used in operating activities for the thirteen weeks ended September 29, 2024, was (5,504)thousand,comparedto(5,504) thousand, compared to 12,749 thousand for the same period in 2023 [32]. Strategic Focus - The company is focusing on generating additional liquidity and maintaining healthy inventory turns amid ongoing macroeconomic uncertainties [5]. - The company plans to focus on growth opportunities and cost-reduction measures in the upcoming quarters, as indicated in their forward-looking statements [17]. - The company aims to enhance its product offerings and customer experience through direct consumer feedback and insights, which is a key part of its strategy moving forward [16]. Capital Expenditure - The full-year 2024 capital expenditure plan has been reduced to approximately 3.2million,adecreaseof3.2 million, a decrease of 0.3 million from the previous estimate [6]. - Capitalized software development costs for the thirteen weeks ended September 29, 2024, were (406)thousand,comparedto(406) thousand, compared to (524) thousand in the prior year [32]. - Purchases of property and equipment for the thirteen weeks ended September 29, 2024, were (386)thousand,downfrom(386) thousand, down from (667) thousand in the same period last year [32]. - The company reported an equity-based compensation expense of 2,022thousandforthethirteenweeksendedSeptember29,2024,comparedto2,022 thousand for the thirteen weeks ended September 29, 2024, compared to 4,337 thousand in the prior year [30].