Lulus Reports First Quarter 2025 Results

Significant Improvement in Liquidity with $1.4M Increase in Cash Provided by Operating Activities and $1.8M Increase in Free Cash Flow, Both Compared to Q1'24

Reduced Total Debt by $3.0M and Net Debt by $7.2M During Q1'25

CHICO, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Lulu's Fashion Lounge Holdings, Inc. ("Lulus” or the "Company”) (Nasdaq: LVLU) today reported financial results for the first quarter ended March 30, 2025 and withdrew its net revenue and Adjusted EBITDA financial outlook for the fiscal year ending December 28, 2025.

Crystal Landsem, CEO of Lulus, said:

"We exceeded our expectations in the first quarter with respect to cash flow generation and net debt reduction. We believe our strengthened balance sheet, along with a leaner cost structure, position us well to navigate the remainder of the year as we continue to invest in our brand, expand on our strategic wholesale partnerships and optimize our product margin.

In the first quarter, we successfully completed the consolidation of our West Coast distribution facilities. We also saw sequential monthly improvement in our year-over-year net revenue comparisons, and we continued to see positive sales momentum in occasion dresses, led by our bridesmaid category. This performance was offset by continued softness in casual wear and footwear, which we are actively repositioning to better align with our strengths in event attire. We are encouraged by the progress we are making against our strategic initiatives to drive cost efficiency, optimize our business, and broaden our customer base.”

First Quarter 2025 Highlights:

• Net revenue of $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 ("AOV”) from $143 to $136 offset by the impact of lower return rates, compared to the same period last year.
• Active Customers of 2.6 million, an 8% decrease compared to 2.8 million in the same period last year.
• Gross profit decreased 21% to $25.8 million and Gross Margin decreased 200 basis points to 40.3%, in each case compared to the same period last year.
• Net loss of $8.0 million, compared to net loss of $5.7 million in the same period last year.
• Adjusted EBITDA* of ($4.7) million, compared to ($2.7) million in the same period last year.
• Net cash provided by operating activities of $8.3 million, compared to $6.9 million in the same period last year.
• Free Cash Flow* of $7.8 million, compared to $6.0 million in the same period last year.
• Total debt and Net Debt* decreased by $3.0 million and $7.2 million to $10.0 million and $1.5 million, respectively, during the thirteen weeks ended March 30, 2025.

Note: "*” represents a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures and Other Operating Metrics” section below for definitions of these metrics.

Tiffany Smith, CFO of Lulus, said:

"Due to heightened uncertainty related to international trade policy, tariffs and the macroeconomic environment, even in light of the recent temporary pause on certain tariffs, we are withdrawing our previously issued full-year 2025 net revenue and Adjusted EBITDA outlook. We expect positive Adjusted EBITDA in the second quarter 2025 and remain committed to strengthening our liquidity position throughout the year while maintaining our full-year 2025 guidance on capital expenditures. We will continue to closely manage our business and take the necessary steps to successfully navigate this dynamic environment. As of the date of this press release, we have further reduced our revolving line of credit balance to $7.3 million.”

Forecasting future results or trends is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. Lulus' outlook is based on current indications for its business. Lulus' outlook factors in our current best estimates for anticipated headwinds, including those related to the level of tariffs, consumer demand, spending and returns by our customers, macroeconomic uncertainties, inflation, supply chain pressures, shipping costs, and the intended impact of cost-reduction measures. Given the volatile nature of current consumer demand and potential for further impacts to consumer behavior due to macroeconomic factors, including continued inflation, higher interest rates, student loan repayment resumption, global political changes, including as a result of the change in the U.S. presidential administration, tariffs or bans, existing and future laws, regulations, and directives (including executive orders), as well as other world events, wars, and domestic and international conflicts that affect overall consumer confidence and the predictability of consumer purchasing behavior, Lulus' financial outlook is subject to change.