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Lulu's Fashion Lounge (LVLU) - 2025 Q4 - Annual Results
LVLULulu's Fashion Lounge (LVLU)2025-03-27 20:43

Financial Performance - Net revenue for fiscal year 2024 was 315.9million,an11315.9 million, an 11% decrease compared to 2023, driven by a 12% decrease in total orders placed[5]. - Active customers decreased by 7% to 2.6 million, down from 2.8 million in 2023[5]. - Gross profit decreased by 12% to 130.2 million, with gross margin decreasing by 50 basis points to 41.2%[5]. - Net loss for fiscal year 2024 was 55.3million,comparedtoanetlossof55.3 million, compared to a net loss of 19.3 million in 2023, including a non-cash goodwill impairment charge of 28.4million[5].−AdjustedEBITDAforfiscalyear2024was(28.4 million[5]. - Adjusted EBITDA for fiscal year 2024 was (9.7) million, compared to 3.2millionin2023[5].−ForthefiscalyearendedDecember29,2024,Lulusreportedanetlossof3.2 million in 2023[5]. - For the fiscal year ended December 29, 2024, Lulus reported a net loss of 55,286,000, compared to a net loss of 19,334,000forthepreviousyear,indicatingasignificantincreaseinlosses[15].−Thecompany′sAdjustedEBITDAforthefiscalyearwas19,334,000 for the previous year, indicating a significant increase in losses[15]. - The company's Adjusted EBITDA for the fiscal year was (9,738,000), a decline from 3,231,000intheprioryear,reflectingongoingoperationalchallenges[30].−GrossMargindecreasedto41.23,231,000 in the prior year, reflecting ongoing operational challenges[30]. - Gross Margin decreased to 41.2% for the fiscal year ended December 29, 2024, down from 41.7% in the previous year, indicating pressure on profitability[30]. - Active Customers decreased to 2,620,000 in the fiscal year 2024, down from 2,830,000 in 2023, suggesting a decline in customer engagement[30]. - Cash provided by operating activities was 2,601,000 for the fiscal year, a decrease from 15,421,000intheprioryear,highlightingcashflowchallenges[15].−NetlossmarginforthethirteenweeksendedDecember29,2024,was(48.2)15,421,000 in the prior year, highlighting cash flow challenges[15]. - Net loss margin for the thirteen weeks ended December 29, 2024, was (48.2)%, compared to (9.6)% for the same period in 2023[31]. - Adjusted EBITDA margin for the fifty-two weeks ended December 29, 2024, was (3.1)%, down from 0.9% for the same period in 2023[31]. Future Outlook - The company expects net revenue for fiscal year 2025 to be between 280 million and 310million,representingadecreaseof11310 million, representing a decrease of 11% to 2% compared to 2024[12]. - The company anticipates adjusted EBITDA for fiscal year 2025 to be between 0 and 6million,anincreaseof6 million, an increase of 9.7 million to 15.7millioncomparedto2024[12].−Theoutlookforfiscalyear2025emphasizesgrowthinoperatingcashflowandafocusonprofitability[7].−Lulusplanstofocusongrowthopportunitiesandareturntoprofitabilityinthecomingquarters,asstatedintheirforward−lookingstatements[18].CostManagement−Costreductioneffortsresultedina175basispointreductionintotalexpensesasapercentageofnetrevenueinQ42024[1].−ThecompanycompletedtheconsolidationofitsWestCoastdistributionfacilitiesinQ12025tooptimizecosts[2].CashFlowandInvestments−Thecompanyexperiencedanetcashdecreaseof15.7 million compared to 2024[12]. - The outlook for fiscal year 2025 emphasizes growth in operating cash flow and a focus on profitability[7]. - Lulus plans to focus on growth opportunities and a return to profitability in the coming quarters, as stated in their forward-looking statements[18]. Cost Management - Cost reduction efforts resulted in a 175 basis point reduction in total expenses as a percentage of net revenue in Q4 2024[1]. - The company completed the consolidation of its West Coast distribution facilities in Q1 2025 to optimize costs[2]. Cash Flow and Investments - The company experienced a net cash decrease of 1,954,000 during the fiscal year, compared to a decrease of 7,713,000inthepreviousyear,indicatingimprovedcashmanagement[15].−Lulusreportedanetcashusedininvestingactivitiesof7,713,000 in the previous year, indicating improved cash management[15]. - Lulus reported a net cash used in investing activities of (2,874,000) for the fiscal year, down from (4,003,000)inthepreviousyear,reflectingareductionincapitalexpenditures[15].−CashandcashequivalentsasofDecember29,2024,were(4,003,000) in the previous year, reflecting a reduction in capital expenditures[15]. - Cash and cash equivalents as of December 29, 2024, were 4,460 thousand, compared to 2,506thousandasofDecember31,2023[31].CustomerEngagement−AverageOrderValue(AOV)forthefiscalyearwas2,506 thousand as of December 31, 2023[31]. Customer Engagement - Average Order Value (AOV) for the fiscal year was 137, compared to $133 in the previous year, showing a slight increase in customer spending per order[30]. - The company is actively investing in new product development and market expansion strategies to enhance customer experience and drive sales[17].