Lulu's Fashion Lounge (LVLU) - 2024 Q4 - Annual Results

Financial Performance - Fiscal Year 2023 net revenue was $355.2 million, a 19% decrease compared to 2022, driven by an 18% decrease in total orders placed[4] - Net loss for Fiscal Year 2023 was $19.3 million, compared to net income of $3.7 million in 2022[4] - Fourth quarter net revenue was $75 million, an 18% decrease compared to the fourth quarter of 2022[9] - Net income for the fiscal year ended December 31, 2023, was a loss of $19,334,000 compared to a profit of $3,725,000 for the previous year[16] - For the thirteen weeks ended December 31, 2023, the net loss was $7,230,000, compared to a net loss of $5,246,000 for the same period in 2022[35] Customer Metrics - Active customers decreased by 12% to 2.8 million from 3.2 million in 2022[4] - Active customers decreased to 2,830,000 in the fiscal year ended December 31, 2023, down from 3,223,000 the previous year[32] Profitability and Margins - Gross margin decreased by 180 basis points to 41.7%, with gross profit down 23% to $148.2 million compared to 2022[4] - Gross margin improved to 41.7% for the fiscal year ended December 31, 2023, up from 43.5% in the prior year[32] - Adjusted EBITDA for the fiscal year ended December 31, 2023, was $3,231,000, a significant decrease from $29,096,000 in the prior year[32] - The net income margin for the fiscal year ended December 31, 2023, was -5.4%, compared to 0.8% for the fiscal year ended January 1, 2023[35] - The adjusted EBITDA margin for the fiscal year ended December 31, 2023, was 0.9%, down from 6.6% in the previous year[35] Cash Flow and Debt - Free cash flow increased by 867% to $10.3 million from $1.2 million in 2022[1] - Total debt decreased by $17 million during Fiscal Year 2023, resulting in a total debt position of $8 million at the end of 2023[4] - Net cash provided by operating activities was $15,421,000 for the fiscal year ended December 31, 2023, compared to $6,199,000 in the prior year[16] - Total debt decreased to $8,000,000 as of December 31, 2023, from $25,000,000 the previous year[33] - Net debt improved to $(5,494,000) as of December 31, 2023, compared to $(14,781,000) the previous year[33] - Cash and cash equivalents at the end of the period were $2,506,000, down from $10,219,000 at the beginning of the period[16] - The company reported a net cash used in operating activities of -$5,679,000 for the thirteen weeks ended December 31, 2023[35] Future Outlook - The company expects Fiscal Year 2024 net revenue to be between $350 million and $370 million, representing a potential increase of up to 4.2% compared to 2023[9] - Adjusted EBITDA for Fiscal Year 2024 is expected to be between $5 million and $8 million, indicating a 55% to 148% increase compared to 2023[13] - The company plans to discuss growth opportunities and financial outlook for the fiscal year ending December 29, 2024, in an upcoming conference call[17] Other Financial Metrics - AOV in the fourth quarter increased by 14% to $136 compared to $119 in the fourth quarter of 2022[9] - Average order value increased to $133 for the fiscal year ended December 31, 2023, compared to $131 in the previous year[32] - Interest expense for the fiscal year ended December 31, 2023, was $1,728,000, compared to $1,103,000 in the previous year[35] - Depreciation and amortization for the fiscal year ended December 31, 2023, totaled $4,819,000, compared to $4,134,000 in the previous year[35] - Capitalized software development costs for the fiscal year ended December 31, 2023, were $2,055,000, down from $2,500,000 in the previous year[35]