Lulu's Fashion Lounge Holdings (LVLU) AI Stock Analysis

• Market Cap: $19.32M
• Dividend Yield: N/A
• Average Volume (3M): 84.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -11.33%
• EPS Growth: -183.48%
• Country: US
• Employees: 580
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): -0.19
• Shares Outstanding: 42,942,380
• 10 Day Avg. Volume: 80,583
• 30 Day Avg. Volume: 84,687
• PEG Ratio: -0.25
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 81.52
• Enterprise Value/Market Cap: 7.51
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: -1.11
• 1Y Price Target: $1.00
• Price Target Upside: 122.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: $0.50 ▲(11.11%Upside)

Lulu's Fashion Lounge Holdings faces substantial financial and operational challenges, reflected in its low financial performance and valuation scores. While there are some positive aspects in the earnings call and short-term technical stability, the company's high leverage, declining revenue, and recent corporate events like the Nasdaq transfer significantly weigh down the stock's attractiveness.

Positive Factors

Business Trends

Management noted trends in the business saw steady monthly improvement in Q1, which has continued into Q2, while return rates were down YoY for the third consecutive quarter.

Cost Reduction

LVLU saw a beat on the bottom-line largely due to cost reduction efforts which drove total opex down 15% YoY.

Profitability

Management expects a positive inflection in profitability in Q2.

Negative Factors

Earnings

Q1 missed on both top and bottom-line, largely due to opex deleverage on the lower sales volume despite cost reduction efforts driving a ~12% decrease in total opex, while gross margin contracted more than expected as well.

Liquidity

Liquidity remains constrained currently, but management remains confident it will be able to refi into a new credit facility towards the end of Q2.

Product Repositioning

Continued pressure in casual wear, and while the brand is working to reposition its separates and footwear assortments towards dressier options, it likely won't be fully optimized until the end of the year.

Lulu's Fashion Lounge Holdings Business Overview & Revenue Model

Company Description

Lulu's Fashion Lounge Holdings, Inc. operates as an online retailer of women's clothing, shoes, and accessories. The company offers dresses, tops, bottoms, bridal wear, intimates, swimwear, footwear, and accessories under the Lulus brand. It sells its products through owned media, which primarily consists of its website, mobile app, social media platforms, email, and SMS; and earned and paid media, as well as social media platforms. The company primarily serves Millennial and Gen Z women. Lulu's Fashion Lounge Holdings, Inc. was founded in 1996 and is headquartered in Chico, California.

How the Company Makes Money

Lulu's Fashion Lounge Holdings generates revenue primarily through its e-commerce platform by selling fashion products directly to consumers. The company's key revenue streams include online sales of clothing, footwear, and accessories. Lulu's utilizes a direct-to-consumer model, which allows it to maintain competitive pricing and a broad selection of fashion-forward merchandise. Significant partnerships with fashion influencers and strategic marketing initiatives also contribute to driving sales and expanding brand reach. Additionally, the company leverages data analytics to optimize inventory and personalize customer experiences, further enhancing its revenue potential.

Lulu's Fashion Lounge Holdings Financial Statement Overview

Summary

Lulu's Fashion Lounge Holdings is facing significant financial challenges, including a decline in revenue, persistent losses, and high leverage. The income statement shows negative revenue growth and margins, while the balance sheet indicates increased financial risk due to high debt and reduced equity. Despite some operational cash flow efficiency, overall financial health is compromised.

Income Statement

The income statement reveals a challenging environment for Lulu's Fashion Lounge Holdings. The company experienced a decline in total revenue from $355.2M in 2023 to $302.8M TTM (Trailing-Twelve-Months), indicating a negative revenue growth rate. Gross profit margin decreased from previous years, and significant negative EBIT and net income highlight persistent profitability issues. While EBIT and EBITDA margins remain negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, with equity substantially decreasing from $60.9M in 2023 to $6.6M TTM. This indicates increasing financial leverage and potential risk. The equity ratio has dropped, reflecting a weakening financial position. ROE is negative due to net losses, further highlighting the company's financial challenges.

Cash Flow

The cash flow statement indicates moderate performance with positive operating cash flow of $3.98M TTM, but free cash flow remains limited at $1.92M. The operating cash flow to net income ratio is positive, suggesting some efficiency in converting earnings to cash flow, but the overall cash position remains constrained, limiting financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Dec 2020
Income Statement		Total Revenue
302.78M	315.89M	355.18M	439.65M	375.63M	248.66M
	Gross Profit
123.44M	130.25M	148.23M	191.45M	176.73M	110.29M
	EBIT
-54.35M	-52.39M	-20.21M	8.74M	22.34M	-4.67M
	EBITDA
-49.73M	-46.20M	-14.46M	16.27M	23.93M	-1.32M
	Net Income Common Stockholders
-57.62M	-55.29M	-19.33M	3.73M	2.04M	-19.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.62M	4.46M	2.51M	10.22M	11.40M	15.55M
	Total Assets
114.34M	108.20M	149.44M	167.20M	113.78M	105.08M
	Total Debt
31.69M	39.35M	39.08M	58.50M	25.00M	115.56M
	Net Debt
23.07M	34.89M	36.57M	48.28M	13.60M	100.01M
	Total Liabilities
107.79M	94.83M	88.49M	102.31M	69.25M	140.63M
	Stockholders Equity
6.55M	13.37M	60.95M	64.89M	44.52M	-35.55M
Cash Flow		Free Cash Flow
1.92M	1.30M	11.49M	1.19M	23.93M	2.88M
	Operating Cash Flow
3.98M	2.60M	15.42M	6.20M	26.90M	4.86M
	Investing Cash Flow
-2.48M	-2.87M	-4.00M	-5.12M	-3.39M	-1.91M
	Financing Cash Flow
1.63M	2.23M	-19.13M	-2.77M	-27.65M	6.75M

Lulu's Fashion Lounge Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVLU, the sentiment is Neutral. The current price of 0.45 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.42, and below the 200-day MA of 0.94, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LVLU.

Lulu's Fashion Lounge Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
BIRD	54 Neutral	$85.09M	―	-72.29%	―	-23.63%	41.36%
SFIX	52 Neutral	$516.73M	―	-27.37%	―	-8.48%	55.77%
ZUMZ	50 Neutral	$212.54M	1,087.27	0.23%	―	3.01%	―
LVLU	47 Neutral	$19.32M	―	-179.00%	―	-11.33%	-183.48%
RENT	47 Neutral	$21.56M	―	47.49%	―	0.60%	36.38%
TLYS	44 Neutral	$34.67M	―	-47.54%	―	-8.79%	-15.17%

Lulu's Fashion Lounge Holdings Corporate Events

Lulu’s Fashion Lounge Transfers to Nasdaq Capital Market

On June 6, 2025, Lulu’s Fashion Lounge Holdings received approval to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, effective June 10, 2025, due to non-compliance with the $10 million stockholders’ equity requirement. The company plans a 1-for-15 reverse stock split to address a minimum bid price deficiency, with trading on a split-adjusted basis expected to begin on June 30, 2025. At the annual meeting on June 10, 2025, stockholders approved the reverse stock split and elected three directors, while also ratifying the appointment of Deloitte & Touche LLP as the independent auditor.

The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.

Lulu’s Fashion Lounge CFO Resigns, Interim Appointed

On May 30, 2025, Tiffany R. Smith announced her resignation as Chief Financial Officer of Lulu’s Fashion Lounge Holdings, effective June 30, 2025, due to personal reasons. She will continue in an advisory role until the company’s quarterly report filing for June 29, 2025. Crystal Landsem, the current CEO, will serve as Interim CFO while a search for a permanent successor is conducted. This transition is not due to any disagreements related to the company’s financial practices, and the company aims to ensure a smooth transition of responsibilities.

The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.

Lulu’s Fashion Applies for Nasdaq Capital Market Transfer

On May 21, 2025, Lulu’s Fashion Lounge Holdings, Inc. was notified by Nasdaq that it was not in compliance with the minimum stockholders’ equity requirement of $10 million for continued listing on the Nasdaq Global Market. The company’s equity was reported at approximately $6.6 million as of March 30, 2025. To address this, the company applied on May 27, 2025, to transfer its securities to the Nasdaq Capital Market, which has a lower equity requirement of $2.5 million, and this application is currently under review.

The most recent analyst rating on (LVLU) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lulu’s Fashion Lounge Holdings stock, see the LVLU Stock Forecast page.