Lulu's Fashion Lounge (LVLU) - 2026 Q1 - Quarterly Results

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].