Lulus Reports Third Quarter 2024 Results

Core Insights - Lulus Fashion Lounge Holdings, Inc. reported a net revenue of $80.5 million for Q3 2024, a decrease of 3% from $83.1 million in Q3 2023, attributed to a 3% decline in total orders placed and a 2% decrease in average order value [4][6] - The company experienced a net loss of $6.9 million in Q3 2024, compared to a loss of $3.9 million in the same period last year, indicating ongoing financial challenges [4][5] - Lulus is focusing on strategic initiatives and cost reduction efforts to enhance financial flexibility and long-term growth, while also managing inventory proactively [2][3] Financial Performance - Q3 2024 highlights include: - Active customers decreased by 10% to 2.7 million compared to 3.0 million in Q3 2023 [4] - Gross profit fell by 9% to $30.6 million, with gross margin decreasing by 220 basis points to 38.1% [4][24] - Adjusted EBITDA for Q3 2024 was ($3.6) million, down from $1.0 million in Q3 2023 [4][24] Inventory and Cost Management - The company ended Q3 2024 with a 7% decline in inventory, which was more significant than the 3% decline in net revenue, indicating effective inventory management [2][4] - Lulus is strategically reevaluating its casual wear business to better align with its focus on event attire, which has seen record growth [2][5] Updated Financial Outlook - For Q4 2024, net revenue is expected to be between $67.5 million and $70.0 million, down from $75 million in Q4 2023 [6] - Full-year 2024 net revenue is projected to be between $317.5 million and $320 million, compared to $355.2 million in fiscal year 2023 [6] - The capital expenditure plan for 2024 has been reduced to approximately $3.2 million, a decrease of $0.3 million from previous estimates [6] Debt and Liquidity - Total debt increased by $11.5 million during the thirteen weeks ended September 29, 2024, indicating rising financial obligations [4][10] - The company is working towards securing more flexible, long-term financing options to support its financial position [3][5]