Lulu's Fashion Lounge -Lulus Reports Fourth Quarter and Fiscal Year 2024 Results

Core Insights - Lulu's Fashion Lounge Holdings, Inc. reported a net revenue of $315.9 million for Q4 2024, an 11% decrease compared to the previous year, primarily due to a 12% decline in total orders placed and higher return rates, despite a 3% increase in average order value [8][14] - The company experienced a net loss of$ 55.3 million in Q4 2024, which included a non-cash goodwill impairment charge of $28.4 million, marking a significant increase from a net loss of$ 19.3 million in Q4 2023 [8][14] - The financial outlook for fiscal year 2025 anticipates continued growth in operating cash flow, driven by strategic cost reductions and a focus on special occasion and event wear, while casual categories are being repositioned [6][10] Financial Performance - Q4 2024 highlights include a gross profit of $130.2 million, a 12% decrease from the previous year, and a gross margin of 41.2%, down 50 basis points [8][14] - Active customers decreased by 7% to 2.6 million compared to 2.8 million in 2023 [8] - Adjusted EBITDA for Q4 2024 was ($ 9.7) million, compared to $3.2 million in Q4 2023, indicating a decline in operational performance [8][14] Cost Management and Strategic Initiatives - The company successfully implemented cost reduction plans, resulting in a 15% decline in selling, marketing, and administrative expenses, amounting to$ 5.5 million lower year-over-year [5][6] - Consolidation of West Coast distribution facilities was completed in early 2025, aimed at optimizing costs and improving operational efficiency [5][6] - Expansion of strategic wholesale partnerships is intended to enhance customer reach across various shopping channels while maintaining a scalable growth model [3][6] Future Outlook - The company expects net revenue for 2025 to be between $280 million and$ 310 million, reflecting a decrease of 11% to 2% compared to 2024 [14] - Anticipated adjusted EBITDA for 2025 is projected to be between $0 and$ 6 million, representing a significant increase compared to the previous year [14] - The company aims to strengthen its cash position and return to profitability while maintaining healthy inventory turns [6][10]