Lulus Reports First Quarter 2025 Results

Core Insights - Lulu's Fashion Lounge Holdings, Inc. reported significant improvements in liquidity, with a $1.4 million increase in cash provided by operating activities and a $1.8 million increase in free cash flow compared to Q1 2024 [1][2] - The company reduced total debt by $3.0 million and net debt by $7.2 million during Q1 2025 [1][2] - The company withdrew its net revenue and Adjusted EBITDA financial outlook for the fiscal year ending December 28, 2025, due to heightened uncertainty related to international trade policy and macroeconomic conditions [2][7] Financial Performance - Net revenue for Q1 2025 was $64.2 million, a 17% decrease compared to the same period last year, driven by a 17% decrease in total orders placed and a 5% decrease in average order value from $143 to $136 [8][10] - Active customers decreased by 8% to 2.6 million compared to 2.8 million in the same period last year [8][31] - Gross profit decreased by 21% to $25.8 million, with gross margin decreasing by 200 basis points to 40.3% [8][31] - The net loss for Q1 2025 was $8.0 million, compared to a net loss of $5.7 million in the same period last year [8][31] - Adjusted EBITDA was ($4.7) million, compared to ($2.7) million in the same period last year [8][31] Operational Highlights - The company successfully consolidated its West Coast distribution facilities and saw sequential monthly improvement in year-over-year net revenue comparisons [4][3] - Positive sales momentum was noted in occasion dresses, particularly in the bridesmaid category, although there was continued softness in casual wear and footwear [4][3] - The company is focused on cost efficiency, optimizing its business, and broadening its customer base [4][3] Cash Flow and Debt Management - Net cash provided by operating activities was $8.3 million, compared to $6.9 million in the same period last year [8][14] - Free cash flow was $7.8 million, compared to $6.0 million in the same period last year [8][34] - Total debt decreased to $10.0 million, and net debt decreased to $1.5 million during the thirteen weeks ended March 30, 2025 [8][33]