LVLU

Interested in Lulu's Fashion Lounge Holdings, Inc.? Here are five stocks we like better. Revenue fell 17% year over year to $67.8 million, pressured by lower order volume, elevated returns and reduced markdown sales as Lulu’s reset its product assortment. However, gross margin expanded 330 basis points to 48.6%, adjusted EBITDA turned positive at $1 million, and the net loss narrowed to $1.5 million. The company reported progress in inventory and operations, with inventory down 23% to $28.6 million and operating expenses down 14%. Occasion-wear and wholesale sales grew strongly, while management expects improved casual apparel and footwear assortments to support customer stabilization and lower return rates. Lulu’s maintained its expectation for positive adjusted EBITDA in fiscal 2026 and formed a special committee to evaluate strategic alternatives, including a potential transaction. To bolster liquidity, it amended its credit facility and secured access to equity lines totaling up to $10 million. Lulu's Fashion Lounge (NASDAQ:LVLU) reported second-quarter fiscal 2026 revenue of $67.8 million, down 17% from a year earlier, as lower order volume and higher return rates weighed on sales. The company said it continued to prioritize merchandise assortment changes, inventory discipline and operating efficiency, while reporting improved gross margin, a narrower net loss and positive adjusted EBITDA. Chief Executive Officer Crystal Landsem said revenue comparisons remained affected by assortment decisions tied to prior product-year cohorts, particularly lower reorder sales from 2025 styles. However, she said new products introduced during the first half of 2026 have been reaching reorder eligibility at rates ahead of the company's internal targets. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “Revenue is still being affected by the runoff of older product cohorts and the assortment decisions made in prior years that did not align with our core customer,” Landsem said. “But the leading indicators are moving in the right direction.” Gross margin increased 330 basis points year over year to 48.6%, which Landsem described as the company’s highest second-quarter gross margin percentage since 2021. Chief Financial Officer Heidi Crane attributed the improvement to a sales shift toward higher-margin products and freight savings from improved shipping rates. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be The company’s net loss improved to $1.5 million from $3 million in the prior-year quarter. Adjusted EBITDA was positive $1 million, compared with $0.5 million in the second quarter of 2025. Diluted loss per share was $0.52, compared with a diluted loss per share of $1.08 a year earlier. Selling and marketing expense fell $3.6 million year over year to $18.4 million, while general and administrative expense declined $1.7 million to $15.8 million. Crane said the G&A reduction reflected lower variable labor and benefit costs tied to sales volumes, lower equity-based compensation expense and reduced fixed headcount, partly offset by higher other G&A expenses. → First Solar’s Profit Engine Faces a New Policy Test in Washington Inventory ended the quarter at $28.6 million, down $8.7 million, or 23%, from a year earlier. Landsem said the largest reductions were in slow-turning markdown inventory. Casual apparel inventory declined 43%, while footwear inventory was reduced by nearly 58%. Total markdown sales fell 38% from the second quarter of 2025, including a 65% decline in markdown sales in casual apparel. While the decline pressured reported revenue, management said the movement toward regular-price sales should improve the quality and profitability of the business. The company expects difficult markdown-sales comparisons to continue into the first quarter of next year. Lulus said its occasion-wear assortment, which includes bridal, bridesmaids, formal and day-event categories, posted double-digit year-over-year sales growth during the quarter. That growth was supported by regular-price sales, according to Landsem. The company also cited improving new-product productivity. In casual apparel and footwear, the number of new product launches was 48% lower than in the prior-year period, while units transacted per new product launch rose 28% year over year and 29% sequentially from the first quarter. President and Chief Information Officer Mark Vos said casual apparel and footwear remain important to increasing customer engagement outside event-driven purchases, though the categories remain below historical levels in aggregate. Management expects more and better new assortment in the third and fourth quarters to increase in-season revenue contribution, help improve return rates and support stabilization in active customers by year-end. Return rates remained elevated during the quarter, driven by a greater mix of occasion products and higher average unit retail prices. The company expects return rates to improve as its casual apparel and footwear assortments normalize in the second half of the year. Wholesale revenue nearly doubled during the quarter, according to Landsem. Vos said wholesale revenue over the trailing 12 months ended in the second quarter increased 130%, while non-specialty same-account revenue rose 61% from the comparable 2025 trailing-12-month period. Lulus is now available in all Nordstrom stores and has doubled its prom assortment presence at Dillard’s to 100 stores. The company also added two major wholesale accounts after the start of the third quarter, though it did not identify them. The company opened a Mall of America pop-up during the quarter and launched its first Disney collaboration tied to The Devil Wears Prada 2. Landsem said the collaboration generated high conversion, higher average order values and new-customer acquisition. Operating expenses declined 14% in the second quarter, Vos said, as the company realized distribution-center efficiencies in outbound and returns processing, refurbishments, click-to-ship times and on-time delivery. Lulus also introduced Happy Returns and additional product-exchange options, which management said have encouraged more customers to exchange products rather than return them. After the quarter ended June 28, Lulus amended its credit facility to provide additional borrowing availability during key periods of the year. It also entered an equity line of credit allowing it to sell up to $4.5 million of equity and has an option for a second equity line of credit of up to $5.5 million. Total debt fell $3.2 million to $10.1 million at quarter-end, while net debt increased $70,000 to $6 million. For fiscal 2026, Lulus maintained its expectation that adjusted EBITDA will turn positive, compared with negative $1.2 million in 2025. The company also expects its net revenue growth trend to improve from the 11% decline reported in 2025 and forecasts capital expenditures of $2 million to $2.5 million, including capitalized software. Management said the tariff environment remains uncertain but does not expect potential tariff refunds to materially affect its outlook or guidance. Landsem also noted that the board has formed a special committee of independent directors to evaluate strategic alternatives intended to maximize stockholder value. The review could include a potential transaction involving the company as well as continued execution of its standalone strategy. The company said it does not intend to comment further unless additional disclosure becomes appropriate. Lulu's Fashion Lounge, Inc is a publicly traded e-commerce apparel retailer that specializes in women's fashion. Headquartered in Chico, California, the company operates under the “Lulus” brand, offering a curated selection of apparel, footwear and accessories designed to meet the trends and needs of a diverse female audience. Since completing its initial public offering and listing on the NASDAQ under the ticker symbol LVLU, Lulu's has focused on expanding its direct-to-consumer business model and enhancing its online platform to drive global reach. The company's core product portfolio includes dresses, tops, denim, swimwear, jumpsuits and outerwear, complemented by a range of shoes, jewelry and handbags. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lulu's Fashion Lounge Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gross margin expanded by 330 basis points to 48.6%, the highest second quarter gross margin since 2021. Adjusted EBITDA turned positive at $1 million, improving from $0.5 million in the prior year. New SKU productivity improved, with a higher percentage of styles reaching reorder thresholds comparable to 2021 levels. Wholesale revenue nearly doubled year-over-year, with two new major retail partners added in Q3. Inventory decreased 23% year-over-year, with significant reductions in slow-turning markdown inventory. Net revenue decreased 17% year-over-year, driven by a 17% decline in total orders and higher return rates. Revenue trends remain below historical levels due to the runoff of older product cohorts and prior assortment decisions. Markdown sales dropped 38% year-over-year, pressuring top-line comparisons. Return rates remain elevated, particularly in occasion wear and higher average unit retail products. Active customers are expected to stabilize only by the end of the year, with continued uncertainty in the tariff environment. Warning! GuruFocus has detected 3 Warning Signs with LVLU. Is LVLU fairly valued? Test your thesis with our free DCF calculator. Q: What were the key drivers behind the significant gross margin expansion and improved profitability in Q2 2026?A: CFO Heidi Crane reported that gross margin expanded by 330 basis points to 48.6%, the highest second-quarter percentage since 2021. This was driven by a shift in sales mix toward higher-margin products and freight cost savings from improved shipping rates. The company also delivered positive adjusted EBITDA of $1 million, a $0.5 million improvement year-over-year, and reduced its net loss to $1.5 million from $3 million in the prior year period. Q: How is the company's assortment reset progressing, and what are the leading indicators of success?A: CEO Crystal Lansom highlighted that new products introduced in the first half of 2026 are converting into reorder-eligible styles at rates well ahead of internal targets, with SKU productivity levels comparable to 2021 and prior. The new occasion wear assortment, including bridal, bridesmaids, formal, and day event categories, delivered double-digit year-over-year top-line growth during the quarter, supported by strong regular price sales. Q: What is the current state of the inventory, and how is it impacting the business?A: Inventory ended the quarter at $28.6 million, down 23% year-over-year, with the largest reductions in slow-turning markdown inventory. Markdown sales transacted down 38% compared to Q2 2025, including a 65% decline in casual apparel markdown sales. While this reduction pressured top-line comparisons, management views the shift toward healthier regular price sales as crucial for improving the quality and profitability of the business. Q: Can you provide more details on the wholesale channel expansion and its contribution?A: President and CIO Mark Voss noted that wholesale revenue nearly doubled during the quarter, with LTM wholesale revenue up 130%. The company expanded from eight to nine non-specialty wholesale partners, with same-account revenue up 61%. Lulus is now available in all Nordstrom doors and doubled its presence to 100 doors at Dillard's for prom assortment. Two additional major wholesale accounts were added in Q3. Q: What is the outlook for the casual apparel and footwear categories, and how are they performing?A: Mark Voss explained that while these categories continue to operate below historical levels, SKU productivity improved with a 28% increase in units transacted per new product launch in Q2 2026 compared to Q2 2025, and up 29% sequentially. New product launches were reduced by 48% year-over-year to focus on quality. The company expects product launch volume to normalize in the back half of the year, leading to a return to growth. Q: What are the expectations for revenue trends and active customers for the remainder of 2026 and into 2027?A: Management expects more and better new assortment in Q3 and Q4 2026 to drive higher in-season revenue contribution, positively impacting return rates and new customer acquisition. They anticipate total active customers to stabilize by the end of the year. Starting in 2027, the stronger product foundations and assortment productivity improvements established during 2026 are expected to support improved revenue trends and expanding profitability. Q: How is the company managing operating expenses and cost reduction initiatives?A: Mark Voss reported that operating expenses decreased 14% in Q2, with continued declines in fixed costs. The company achieved distribution center efficiency gains, including improvements in outbound and returns processing, lower refurbishment costs, and better click-to-ship times. New initiatives like Happy Returns and expanded product exchange options are driving customer satisfaction and revenue retention. Q: What financing initiatives were completed after the quarter end to enhance liquidity?A: CFO Heidi Crane detailed that the company executed an amendment to its credit facility for additional borrowing availability and entered into a new equity line of credit with the option to sell up to $4.5 million, with an option for an additional $5.5 million. These actions are expected to provide additional liquidity and greater operating flexibility. Q: How is the company navigating the tariff environment and its potential impact?A: Mark Voss stated that the tariff environment remains fluid with ongoing uncertainty around rates, refunds, and timing. Through disciplined execution across sourcing, vendor negotiations, pricing, and assortment management, the company continues to mitigate impacts and does not expect potential refunds to materially affect its outlook or guidance. Q: What is the company's full-year 2026 guidance and outlook?A: Heidi Crane reaffirmed that for fiscal 2026, the company expects adjusted EBITDA to be positive compared to negative $1.2 million in 2025, and net revenue growth trends to improve year-over-year compared to a decrease of 11% in 2025. Capital expenditures are expected to be between $2 million and $2.5 million, inclusive of capitalized software. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Gross Margin increased 330 basis points in Q2’26 vs Q2’25 CHICO, Calif., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial results for the second quarter ended June 28, 2026 and reaffirmed its financial outlook for the fiscal year ending January 3, 2027. Crystal Landsem, CEO of Lulus, said: “Our second quarter results reflect continued progress executing our turnaround strategy, with another quarter of meaningful margin expansion, improved profitability, stronger inventory productivity, and positive Adjusted EBITDA. We remained focused on disciplined inventory management, margin expansion, and operational efficiency, while continuing to invest in the categories and customer experiences that differentiate the Lulus brand. As a result, Gross Margin expanded 330 basis points year-over-year to 48.6%, our highest second-quarter Gross Margin rate since 2021. Compared with the second quarter of last year, net loss narrowed by $1.5 million, Adjusted EBITDA improved to positive $1.0 million, and inventory declined 23% as we further aligned our assortment with customer demand. While revenue trends remained below our historical levels, we continued to prioritize the long-term health of the business over short-term volume. The progress we are seeing in the new assortment and future reorder funnel reinforces our conviction that resetting the assortment around the categories and customers where Lulus has historically differentiated itself is improving SKU productivity, reorder adoption rates, customer economics, and the overall quality of the business. Our wholesale business again nearly doubled year-over-year, reinforcing that customer demand for the Lulus brand extends well beyond our owned channels. Looking ahead, we remain focused on balancing disciplined execution with strategic investments that strengthen customer engagement, support profitable growth, and position Lulus to deliver long-term value.” Second Quarter 2026 Highlights: Net revenue of $67.8 million, a 17% decrease compared to the same period last year, driven by a 17% decrease in Total Orders Placed and the impact of higher return rates driven primarily from sales mix, partially offset by a 1% increase in Average Order Value from $145 to $147, compared to the same period last year, and an increase in wholesale revenue. Active Customers of 2.2 million, a 13% decrease compared to 2.5 million in the same period last year, and a decrease of 5% from first quarter 2026. Gross profit decreased 11% to $33.0 million and Gross Margin increased 330 basis points to 48.6%, in each case compared to the same period last year. Net loss of $1.5 million, compared to net loss of $3.0 million in the same period last year. Adjusted EBITDA* of $1.0 million, compared to $0.5 million in the same period last year. Inventory balance of $28.6 million, a 23% decrease compared to $37.3 million in the same period last year, reflecting the disciplined reset in casual apparel and footwear. Net cash provided by operating activities of $0.6 million, compared to net cash used in operating activities of $1.4 million in the same period last year. Free Cash Flow* of $0.1 million, compared to $(1.9) million in the same period last year. Total debt decreased by $3.2 million and $4.3 million during the thirteen and twenty-six weeks ended June 28, 2026, respectively. Net Debt* increased by $0.1 million and decreased by $5.8 million during the thirteen and twenty-six weeks ended June 28, 2026, respectively. 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. Heidi Crane, CFO of Lulus, said: “Throughout the second quarter, we remained disciplined in balancing profitability and inventory productivity, while continuing to refine our assortment and cost structure to support long-term financial performance. While the demand environment remained challenging, our actions drove a 330 basis point expansion in Gross Margin, positive Adjusted EBITDA of $1.0 million, and meaningful improvement in our bottom-line results year-over-year. Additionally, with positive year-to-date operating cash flow and Free Cash Flow, improved margins, and a more efficient cost structure, we believe we are well positioned to continue driving sustainable financial improvement as we move through the remainder of 2026.” 2026 Financial Outlook: We are reaffirming our outlook for the full year fiscal 2026: We expect Adjusted EBITDA to inflect to positive, compared to $(1.2) million in 2025, and the net revenue growth trend to improve year-over-year, compared to a decrease of 11% in 2025. We expect capital expenditures to be between $2.0 million and $2.5 million, inclusive of capitalized software, comparable to 2025 levels. 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 and fuel costs, and the intended impact of our business initiatives in 2026 and 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, the federal government shutdown, student loan repayment resumption, global political changes, including as a result of 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. (1) Amounts have been adjusted to reflect the 1-for-15 reverse stock split that became effective as of the opening of business on July 7, 2025. Refer to Note 8, Stockholders’ Equity (Deficit), in the Notes to the Condensed Consolidated Financial Statements included in the Quarterly Report on Form 10-Q for the period ended June 28, 2026, for more information. (1) Shares have been adjusted to reflect the 1-for-15 reverse stock split that became effective as of the opening of business on July 7, 2025. Refer to Note 8, Stockholders’ Equity (Deficit), in the Notes to the Condensed Consolidated Financial Statements included in the Quarterly Report on Form 10-Q for the period ended June 28, 2026, for more information. Webcast & Conference Call Information The Company will host a conference call and live webcast with the investment community at 5:00 p.m. Eastern Time today, Wednesday, August 12, 2026, to discuss its second quarter 2026 financial results. The live webcast will be accessible through the Investor Relations section of the Company’s website at https://investors.lulus.com/. To access the call through a conference line, dial 1-877-407-0792 (in the U.S.) or 1-201-689-8263 (international callers). A replay of the conference call will be posted shortly after the call and will be available for seven days following the call. To access the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). The access code for the replay is 13761425. About Lulus Headquartered in California, but serving millions of customers worldwide, Lulus is a women’s clothing brand offering modern, feminine styles at accessible prices for every occasion. Our goal is to make every customer feel their most confident and beautiful for the moments that matter most. Founded in 1996 and delivering fresh styles almost every day, Lulus uses direct customer feedback and insights to refine product offerings and elevate the customer experience. Lulus’ world-class personal stylists, bridal concierge, and customer care team provide thoughtful, personalized service to shoppers around the world. Follow @lulus on Instagram and @lulus on TikTok. Lulus is a registered trademark of Lulu’s Fashion Lounge, LLC. All rights reserved. Forward-Looking Statements This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our strategic priorities, business initiatives, demand trends, opportunities for long-term growth, and our financial outlook for the fiscal year ending January 3, 2027. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause Lulus’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the risk factors discussed in Part I, Item 1A, “Risk Factors” in Lulus’ Annual Report on Form 10-K for the fiscal year ended December 28, 2025 and our other filings with the Securities and Exchange Commission which could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Lulus may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, except as required by law, even if subsequent events cause its views to change. Use of Non-GAAP Financial Measures and Other Operating Metrics To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Free Cash Flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release. Definitions of our non-GAAP financial measures and other operating metrics are presented below. We also use certain key operating metrics, including Gross Margin, Active Customers, and Average Order Value. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss) before interest expense, income taxes or benefit, depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, goodwill impairment and other non-routine expenses. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes items that we do not consider to be indicative of our core operating performance. Adjusted EBITDA Margin Adjusted EBITDA Margin is a non-GAAP financial measure that we calculate as Adjusted EBITDA (as defined above) as a percentage of our net revenue. Active Customers We define Active Customers as the number of customers who have made at least one purchase across our platform in the prior 12-month period. Active Customer count is measured as of the last day of the relevant period. We consider the number of Active Customers to be a key performance metric on the basis that it is directly related to consumer awareness of our brand, our ability to attract visitors to our digital platform, and our ability to convert visitors to paying customers. Active Customer counts are based on deduplication logic using customer account and guest checkout name, address, and email information. Average Order Value We define Average Order Value (“AOV”) as the sum of the total gross sales before returns across our platform in a given period, plus shipping revenue, less discounts and markdowns, divided by the Total Orders Placed (as defined below) in that period. AOV reflects the average basket size of our customers. AOV may fluctuate as we continue investing in the development and introduction of new Lulus merchandise and as a result of our promotional discount activity. Free Cash Flow Free Cash Flow is a non-GAAP financial measure that we calculate as net cash provided by (used in) operating activities less cash used for capitalized software development costs and purchases of property and equipment. We view Free Cash Flow as an important indicator of our liquidity because it measures the amount of cash we generate. Gross Margin We define Gross Margin as gross profit as a percentage of our net revenue. Gross profit is equal to our net revenue less cost of revenue. Certain of our competitors and other retailers may report cost of revenue differently than we do. As a result, the reporting of our gross profit and Gross Margin may not be comparable to other companies. Net Debt Net Debt is a non-GAAP financial measure that is defined as total debt, which currently consists of borrowings under the Company’s 2025 credit agreement with White Oak Commercial Finance, LLC, as amended, less cash and cash equivalents. We consider Net Debt to be an important supplemental measure of our financial position, which allows us to analyze our leverage. Total Orders Placed We define Total Orders Placed as the number of customer orders placed across our platform during a particular period. An order is counted on the day the customer places the order. We do not adjust the number of Total Orders Placed for any cancellation or return that may have occurred subsequent to a customer placing an order. Total Orders Placed, together with AOV, is an indicator of the net revenue we expect to generate in a particular period. Note: Refer to “Use of Non-GAAP Financial Measures and Other Operating Metrics” section above for definitions of these metrics. (1) Refer to the table below for a reconciliation of net loss and net loss margin to non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin for the thirteen weeks ended June 28, 2026 and June 29, 2025. A reconciliation to non-GAAP Net Debt from total debt as of June 28, 2026 and December 28, 2025 is as follows: (1) Consists of borrowings under the Company’s 2025 credit agreement with White Oak Commercial Finance, LLC as of June 28, 2026, and December 28, 2025, which are presented as “Asset Based Revolving Credit Facility – current” in the Company’s Condensed Consolidated Balance Sheets in the Quarterly Report on Form 10-Q for the period ended June 28, 2026. A reconciliation to non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin from net loss and net loss margin for the thirteen weeks ended June 28, 2026 and June 29, 2025 is as follows: (1) The thirteen weeks ended June 28, 2026 include equity-based compensation expense for performance stock units (“PSUs”) granted during prior periods and restricted stock units (“RSUs”) granted during the period and prior periods. The thirteen weeks ended June 29, 2025 include equity-based compensation expense for PSUs and RSUs granted during the period and prior periods. (2) The thirteen weeks ended June 28, 2026 include primarily fees related to the Special Committee. A reconciliation to non-GAAP Free Cash Flow from net cash provided by operating activities for the thirteen weeks ended June 28, 2026 and June 29, 2025 is as follows: [email protected]

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gross margins expanded by 480 basis points to 45.1%, marking the highest first-quarter gross margin percentage since 2022. The wholesale channel is scaling rapidly, with revenue doubling year-over-year, complementing and amplifying the D2C business. Adjusted EBITDA improved significantly year-over-year, highlighting progress in prioritizing profitability and maintaining a lean cost structure. The company saw a 13% year-over-year decline in operating expenses, including an 8% reduction in fixed costs. Lulus Fashion Lounge Holdings Inc (NASDAQ:LVLU) has over 9 million social media followers, enhancing brand visibility and engagement. Net revenue decreased by 10% year-over-year, driven by a 15% decrease in total orders placed and higher return rates. Return rates increased year-over-year, primarily due to a greater mix of elevated occasion products and higher average unit retails. The company experienced a net loss of $4.1 million in the first quarter, although this was an improvement from the previous year. Free cash flow in the first quarter was $6.5 million, down from $7.8 million in the same period last year. Inventory balance at quarter end was $33.1 million, a decrease of 17% year-over-year, indicating potential challenges in inventory management. Warning! GuruFocus has detected 4 Warning Signs with LVLU. Is LVLU fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic priorities for improving order economics and expanding the wholesale channel? A: Mark Voss, President and CIO, explained that the focus is on strengthening casual apparel and footwear categories to drive improved order economics. This involves limiting new product introductions to high-conviction items and resetting the assortment. The wholesale channel is expanding rapidly, with revenue doubling year-over-year, and Lulu's is now available in all Nordstrom doors and 100 Dillard's locations. Q: How is Lulu's leveraging technology to enhance engagement and operational efficiency? A: Mark Voss highlighted cost reduction initiatives, including a 13% year-over-year decline in operating expenses and increased distribution center efficiency. The introduction of Happy Returns has improved the return process, and the updated Complete-to-Look functionality enhances the shopping experience. Q: What are the financial highlights from the first quarter? A: Heidi Crane, CFO, reported a net revenue of $57.5 million, a 10% decrease year-over-year, with a gross margin of 45.1%, up 480 basis points. Adjusted EBITDA improved to a loss of $1.5 million from a $4.7 million loss in Q1 2025. The net loss for the quarter was $4.1 million, an improvement from an $8 million loss in the same period last year. Q: What actions are being taken to optimize the casual apparel and footwear assortment? A: Crystal Lansom, CEO, stated that the company is maintaining disciplined inventory receipts and a curated assortment to improve productivity and profitability. Inventory in these categories was significantly reduced, positioning the company to reintroduce higher-quality newness throughout the year. Q: What are the expectations for the rest of the fiscal year 2026? A: Heidi Crane mentioned that the company expects positive adjusted EBITDA in the second quarter and for the full year. The focus remains on improving profitability, strengthening the financial position, and preparing for the peak selling period. Capital expenditures are expected to be between $2 million and $2.5 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Loss Improves by $3.9 Million in Q1’26 vs Q1’25 Underscoring Continued Operational and Financial Momentum Gross Margin increased 480 basis points in Q1’26 vs Q1’25 Reduced Total Debt by $1.1M and Net Debt by $5.8M During Q1’26 CHICO, Calif., May 13, 2026 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial results for the first quarter ended March 29, 2026 and reaffirmed its financial outlook for the fiscal year ending January 3, 2027. Crystal Landsem, CEO of Lulus, said: “Our first quarter results reflect continued progress in strengthening the foundation of the business, even as we took deliberate strategic actions to re-position our assortment as we move into our peak selling periods. During the quarter, we prioritized higher quality demand and disciplined order economics, while more aggressively resetting our casual apparel and footwear assortments to better align with customer demand and margin objectives. As expected, these actions resulted in softer top-line results on a sequential basis, however, gross margins expanded by 480 basis points and Adjusted EBITDA improved by $3.1 million year-over-year, supported by our improved assortment strategy, leaner cost structure, and ongoing optimization efforts. Furthermore, our wholesale revenue doubled year-over-year, highlighting the strong engagement and meaningful opportunity we see in the near- and long-term to expand our footprint and put Lulus in the hands of more consumers nationwide.” “With a more focused assortment, continued emphasis on higher-margin event-driven categories while the casual apparel and footwear reset are underway, and a strengthened balance sheet—including a $5.8 million reduction in Net Debt—we are confident in extending our momentum and driving improved profitability, cash generation, and customer engagement throughout the year.” First Quarter 2026 Highlights: Net revenue of $57.5 million, a 10% decrease compared to the same period last year, driven by a 15% decrease in Total Orders Placed and the impact of higher return rates driven primarily from sales mix, partially offset by a 4% increase in Average Order Value from $136 to $142, compared to the same period last year. Active Customers of 2.3 million, an 11% decrease compared to 2.6 million in the same period last year, and a decrease of 3% from fourth quarter 2025. Gross profit increased 0.4% to $25.9 million and Gross Margin increased 480 basis points to 45.1%, in each case compared to the same period last year. Net loss of $4.1 million, compared to net loss of $8.0 million in the same period last year. Adjusted EBITDA* of $(1.5) million, compared to $(4.7) million in the same period last year. Inventory balance of $33.1 million, a 17% decrease compared to $39.7 million in the same period last year, reflecting the disciplined reset in casual apparel and footwear. Net cash provided by operating activities of $6.9 million, compared to $8.3 million in the same period last year. Free Cash Flow* of $6.5 million, compared to $7.8 million in the same period last year. Total debt and Net Debt* decreased by $1.1 million and $5.8 million to $13.3 million and $5.9 million, respectively, during the thirteen weeks ended March 29, 2026. 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. Heidi Crane, CFO of Lulus, said: “As we move through 2026, we are prioritizing profitability by advancing margin optimization efforts, a tighter and higher-margin assortment strategy, and continued execution of our sourcing, SKU rationalization and cost reduction initiatives. While our targeted assortment reset in the first quarter weighed on Adjusted EBITDA performance during the period as anticipated, we drove significant improvement in our margin profile and bottom-line results year-over-year, setting the stage for improved performance throughout the year. We expect Adjusted EBITDA to return to positive in the second quarter and remain confident in our ability to achieve positive Adjusted EBITDA for the full year, while continuing to strengthen cash generation and our balance sheet. Notably, during the first quarter, we reduced total debt and Net Debt by $1.1 million and $5.8 million respectively, further strengthening our financial position.” 2026 Financial Outlook: We are reaffirming our outlook for the full year fiscal 2026: We expect Adjusted EBITDA to inflect to positive, compared to $(1.2) million in 2025, and the net revenue growth trend to improve year-over-year, compared to a decrease of 11% in 2025. We expect capital expenditures to be between $2.0 million and $2.5 million, inclusive of capitalized software, comparable to 2025 levels. For the second quarter 2026, we expect positive Adjusted EBITDA that outperforms results for the same period of last year. 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 and fuel costs, and the intended impact of our business initiatives in 2026 and 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, the federal government shutdown, student loan repayment resumption, global political changes, including as a result of 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. Webcast & Conference Call Information The Company will host a conference call and live webcast with the investment community at 5:00 p.m. Eastern Time today, Wednesday, May 13, 2026, to discuss its first quarter 2026 financial results. The live webcast will be accessible through the Investor Relations section of the Company’s website at https://investors.lulus.com/. To access the call through a conference line, dial 1-877-407-0792 (in the U.S.) or 1-201-689-8263 (international callers). A replay of the conference call will be posted shortly after the call and will be available for seven days following the call. To access the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). The access code for the replay is 13759804. About Lulus Headquartered in California, but serving millions of customers worldwide, Lulus is a women’s clothing brand offering modern, feminine styles at accessible prices for every occasion. Our goal is to make every customer feel their most confident and beautiful for the moments that matter most. Founded in 1996 and delivering fresh styles almost every day, Lulus uses direct customer feedback and insights to refine product offerings and elevate the customer experience. Lulus’ world-class personal stylists, bridal concierge, and customer care team provide thoughtful, personalized service to shoppers around the world. Follow @lulus on Instagram and @lulus on TikTok. Lulus is a registered trademark of Lulu’s Fashion Lounge, LLC. All rights reserved. Forward-Looking Statements This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our strategic priorities, business initiatives, demand trends, opportunities for long-term growth, and our financial outlook for the fiscal second quarter ending June 28, 2026 and fiscal year ending January 3, 2027. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause Lulus’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the risk factors discussed in Part I, Item 1A, “Risk Factors” in Lulus’ Annual Report on Form 10-K for the fiscal year ended December 28, 2025 and our other filings with the Securities and Exchange Commission which could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Lulus may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, except as required by law, even if subsequent events cause its views to change. Use of Non-GAAP Financial Measures and Other Operating Metrics To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Free Cash Flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release. Definitions of our non-GAAP financial measures and other operating metrics are presented below. We also use certain key operating metrics, including Gross Margin, Active Customers, and Average Order Value. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss) before interest expense, income taxes or benefit, depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, goodwill impairment and other non-routine expenses. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes items that we do not consider to be indicative of our core operating performance. Adjusted EBITDA Margin Adjusted EBITDA Margin is a non-GAAP financial measure that we calculate as Adjusted EBITDA (as defined above) as a percentage of our net revenue. Active Customers We define Active Customers as the number of customers who have made at least one purchase across our platform in the prior 12-month period. Active Customer count is measured as of the last day of the relevant period. We consider the number of Active Customers to be a key performance metric on the basis that it is directly related to consumer awareness of our brand, our ability to attract visitors to our digital platform, and our ability to convert visitors to paying customers. Active Customer counts are based on deduplication logic using customer account and guest checkout name, address, and email information. Average Order Value We define Average Order Value (“AOV”) as the sum of the total gross sales before returns across our platform in a given period, plus shipping revenue, less discounts and markdowns, divided by the Total Orders Placed (as defined below) in that period. AOV reflects the average basket size of our customers. AOV may fluctuate as we continue investing in the development and introduction of new Lulus merchandise and as a result of our promotional discount activity. Free Cash Flow Free Cash Flow is a non-GAAP financial measure that we calculate as net cash provided by (used in) operating activities less cash used for capitalized software development costs and purchases of property and equipment. We view Free Cash Flow as an important indicator of our liquidity because it measures the amount of cash we generate. Gross Margin We define Gross Margin as gross profit as a percentage of our net revenue. Gross profit is equal to our net revenue less cost of revenue. Certain of our competitors and other retailers may report cost of revenue differently than we do. As a result, the reporting of our gross profit and Gross Margin may not be comparable to other companies. Net Debt Net Debt is a non-GAAP financial measure that is defined as total debt, which currently consists of borrowings under the Company’s 2025 credit agreement with White Oak Commercial Finance, LLC, as amended, less cash and cash equivalents. We consider Net Debt to be an important supplemental measure of our financial position, which allows us to analyze our leverage. Total Orders Placed We define Total Orders Placed as the number of customer orders placed across our platform during a particular period. An order is counted on the day the customer places the order. We do not adjust the number of Total Orders Placed for any cancellation or return that may have occurred subsequent to a customer placing an order. Total Orders Placed, together with AOV, is an indicator of the net revenue we expect to generate in a particular period. Note: Refer to “Use of Non-GAAP Financial Measures and Other Operating Metrics” section above for definitions of these metrics. A reconciliation to non-GAAP Net Debt from total debt as of March 29, 2026 and December 28, 2025 is as follows: A reconciliation to non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin from net loss and net loss margin for the thirteen weeks ended March 29, 2026 and March 30, 2025 is as follows: A reconciliation to non-GAAP Free Cash Flow from net cash provided by operating activities for the thirteen weeks ended March 29, 2026 and March 30, 2025 is as follows: Contact [email protected]

This article first appeared on GuruFocus. Release Date: March 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lulus Fashion Lounge Holdings Inc (NASDAQ:LVLU) achieved three consecutive quarters of positive adjusted EBITDA performance, indicating improved profitability. The company experienced triple-digit year-over-year growth in its wholesale business, expanding into major retail partners and increasing brand reach. Gross margins expanded by 640 basis points to 44.3% in the fourth quarter, marking the highest fourth quarter gross margin since 2021. The company successfully reduced operating expenses by 12% year-over-year in the fourth quarter, including a 13% reduction in fixed costs. Lulus Fashion Lounge Holdings Inc (NASDAQ:LVLU) improved its product margins for the fifth consecutive quarter, with a 240 basis point increase in the fourth quarter compared to the prior year. Net revenue decreased by 5% year-on-year in the fourth quarter, driven by an 11% decrease in total orders placed. The company reported a net loss of $13.7 million for the full year, although this was an improvement from the previous year's loss. Casual and footwear categories have pressured top-line performance, with a need for repositioning and improvement in these areas. The broader environment, including potential tariff impacts and freight volatility, may continue to create variability in demand. Interest expenses increased due to higher average borrowings and a write-off of loan amendment fees related to a prior credit agreement. Warning! GuruFocus has detected 5 Warning Signs with LVLU. Is LVLU fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic focus for 2026 and how it will impact Lulu's growth? A: Crystal Landsem, CEO, emphasized that 2026 will focus on strengthening casual and footwear categories, expanding wholesale presence, and leveraging technology to enhance customer engagement and efficiency. These initiatives aim to improve order economics, broaden reach, and support sustainable long-term growth. Q: How did Lulu's perform financially in the fourth quarter of 2025? A: Heidi Crane, CFO, reported a net revenue of $63 million, a 5% year-on-year decrease. However, gross margin improved by 640 basis points to 44.3%, driven by higher full-price sales and improved outbound shipping costs. Adjusted EBITDA was positive at $2.6 million, marking a significant improvement from the previous year. Q: What progress has been made in the wholesale expansion strategy? A: Mark Vos, President and CIO, highlighted that Lulu's expanded its wholesale presence to 9 major retail partners in 2025, with plans to add more in 2026. Wholesale revenue increased by 143% year-over-year, demonstrating strong brand resonance in retail environments. Q: How is Lulu's addressing the challenges in the casual and footwear categories? A: Crystal Landsem, CEO, stated that the company is narrowing its assortment and focusing on higher-quality product launches. This strategy aims to stabilize these categories and improve their contribution to overall revenue, with expected improvements in the second half of 2026. Q: What technological advancements are being implemented to enhance customer experience? A: Mark Vos, President and CIO, discussed initiatives such as return feedback optimization, happy returns integration, enhanced product descriptions, and AI-powered review summaries. These efforts aim to reduce returns, improve product curation, and enhance customer engagement. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Gross profit increased 11% in Q4’25 vs Q4’24 CHICO, Calif., March 30, 2026 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU) today reported financial results for the fourth quarter and fiscal year ended December 28, 2025 and issued its financial outlook for the fiscal year ending January 3, 2027. Crystal Landsem, CEO of Lulus, said: “Our fourth quarter results highlight the significant, steady progress we delivered in 2025, and represent another proof point of the momentum building across the business. Throughout the year, we saw sequential quarterly improvement in our year-over-year net revenue comparisons. In 2025, we made substantial progress towards profitability, including four consecutive quarters of product margin expansion resulting in a 200-basis-point gross margin improvement for the year. These results reinforce the impact of our focused assortment strategy, ongoing optimization efforts, and higher margin event-driven mix. Importantly, we delivered our third consecutive quarter of positive Adjusted EBITDA, supported by our leaner cost structure and product margin gains. As we continue to reposition our casual wear and footwear categories, the measurable progress we’ve made each quarter gives us strong conviction in our strategy and key priorities. We believe we entered 2026 well positioned to extend our positive momentum through disciplined execution and capitalizing on our strengths in event dressing. We remain committed to fueling our core business and broadening and enhancing customer engagement to unlock sustainable, long-term profitability.” Fourth Quarter 2025 Highlights: Gross profit increased 11% to $27.9 million and Gross Margin increased 640 basis points to 44.3%, in each case compared to the same period last year. Net revenue of $63.0 million, a 5% decrease compared to the same period last year, driven by an 11% decrease in Total Orders Placed, partially offset by a 6% increase in Average Order Value (“AOV”) from $129 to $137, compared to the same period last year. Net loss of $0.4 million, compared to net loss of $31.9 million, or net loss of $3.4 million excluding a non-cash goodwill impairment charge of $28.4 million, in the same period last year. Adjusted EBITDA* of $2.6 million, compared to $(3.3) million in the same period last year. Net cash used in operating activities of $3.8 million, compared to net cash used in operating activities of $2.5 million in the same period last year. Free Cash Flow* of $(4.3) million, compared to $(3.0) million in the same period last year. 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. Fiscal Year 2025 Highlights: Gross profit decreased 6% to $122.1 million but Gross Margin increased 200 basis points to 43.2%, in each case compared to 2024. Net revenue of $282.3 million, an 11% decrease compared to 2024, driven by a 15% decrease in Total Orders Placed, partially offset by a 2% increase in AOV from $137 to $140, compared to 2024. Active Customers of 2.3 million, a 11% decrease compared to 2.6 million in 2024. Net loss of $13.7 million, compared to net loss of $55.3 million in 2024. Included in net loss for 2024 was a non-cash goodwill impairment charge of $28.4 million. Excluding the non-cash goodwill impairment charge, our net loss in 2024 was $26.9 million. Adjusted EBITDA* of $(1.2) million, compared to $(9.7) million in 2024. Net cash provided by operating activities of $1.4 million, compared to $2.6 million in 2024. Free Cash Flow* of ($0.8) million, compared to $(0.3) million in 2024. Total debt and Net Debt* was $14.4 million and $11.7 million, respectively, as of December 28, 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. Heidi Crane, CFO of Lulus, said: “Our financial performance throughout 2025 gives us confidence in the strength of our fundamentals and the resilience of our model. Over the course of the year, we delivered meaningful progress across our key profitability drivers — including sustained product margin expansion, improved gross margins, favorable return behavior, and a more efficient cost structure — all supported by disciplined inventory management and ongoing operational rigor. These achievements, combined with the completion of our new asset-based credit facility, have strengthened our liquidity position and enhanced our financial flexibility heading into the new year. In 2026, we remain focused on driving profitability through continued margin optimization, a more curated and higher margin assortment mix, and the ongoing benefits of our sourcing, SKU rationalization, and cost reduction initiatives. We expect the steady improvements made throughout 2025 — including stronger event-driven demand, increasing wholesale contribution, and healthier unit economics — to carry forward, positioning us to deliver further EBITDA expansion and improved cash generation year-over-year.” 2026 Financial Outlook: As we enter 2026, our focus is on driving profitability while continuing to strengthen the business. In the first quarter, we are prioritizing higher quality demand and disciplined order economics while actively and more aggressively resetting the assortment of our casual apparel and footwear categories. As a result of these actions, we expect first quarter 2026 revenue trends to be sequentially lower than the fourth quarter 2025. We expect Adjusted EBITDA to be negative for the first quarter of 2026, which can be typical for first quarters, however we expect meaningful improvement in year-over-year Adjusted EBITDA. We believe these steps will better align our assortment with customer demand and position the business for improved profitability during our upcoming peak selling periods, typically in the second and third quarters, and deliver stronger cash flows for the full year. We also continue to strengthen our financial position, with net debt expected to be between $7.5 and $8.0 million at the end of the first quarter of 2026. For the full year fiscal 2026: We expect Adjusted EBITDA to inflect to positive, compared to $(1.2) million in 2025, and the net revenue growth trend to improve year-over-year, compared to negative 11% in 2025. We expect capital expenditures to be between $2.0 million and $2.5 million, inclusive of capitalized software, comparable to 2025 levels. 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 and fuel costs, and the intended impact of our business initiatives in 2026 and 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, the federal government shutdown, student loan repayment resumption, global political changes, including as a result of 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. Webcast & Conference Call Information The Company will host a conference call and live webcast with the investment community at 5:00 p.m. Eastern Time today, Monday, March 30, 2026, to discuss its fourth quarter and full year 2025 financial results. The live webcast will be accessible through the Investor Relations section of the Company’s website at https://investors.lulus.com/. To access the call through a conference line, dial 1-877-407-0792 (in the U.S.) or 1-201-689-8263 (international callers). A replay of the conference call will be posted shortly after the call and will be available for seven days following the call. To access the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). The access code for the replay is 13758896. About Lulus Headquartered in California, but serving millions of customers worldwide, Lulus is a women’s clothing brand offering modern, feminine styles at accessible prices for every occasion. Our goal is to make every customer feel their most confident and beautiful for the moments that matter most. Founded in 1996 and delivering fresh styles almost every day, Lulus uses direct customer feedback and insights to refine product offerings and elevate the customer experience. Lulus’ world-class personal stylists, bridal concierge, and customer care team provide thoughtful, personalized service to shoppers around the world. Follow @lulus on Instagram and @lulus on TikTok. Lulus is a registered trademark of Lulu’s Fashion Lounge, LLC. All rights reserved. Forward-Looking Statements This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our strategic priorities, business initiatives, demand trends, opportunities for long-term growth, and our financial outlook for the fiscal quarter ended March 29, 2026 and fiscal year ending January 3, 2027. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause Lulus’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the risk factors discussed in Part I, Item 1A, “Risk Factors” in Lulus’ Annual Report on Form 10-K for the fiscal year ended December 29, 2024, Part II, Item IA, “Risk Factors” in Lulus’ Quarterly Reports on Form 10-Q for the fiscal quarters ended March 30, 2025 and June 29, 2025, and our other filings with the Securities and Exchange Commission which could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Lulus may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, except as required by law, even if subsequent events cause its views to change. Use of Non-GAAP Financial Measures and Other Operating Metrics To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Free Cash Flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release. A reconciliation of Net Debt on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide the total debt amount for the outlook period and reconciling information with respect to the adjustment item of cash and cash equivalents. Definitions of our non-GAAP financial measures and other operating metrics are presented below. We also use certain key operating metrics, including Gross Margin, Active Customers, Average Order Value, and Total Orders Placed. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we calculate as net loss before interest expense, income taxes, depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, goodwill impairment and other non-routine expenses. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes items that we do not consider to be indicative of our core operating performance. Adjusted EBITDA Margin Adjusted EBITDA Margin is a non-GAAP financial measure that we calculate as Adjusted EBITDA (as defined above) as a percentage of our net revenue. Active Customers We define Active Customers as the number of customers who have made at least one purchase across our platform in the prior 12-month period. Active Customer count is measured as of the last day of the relevant period. We consider the number of Active Customers to be a key performance metric on the basis that it is directly related to consumer awareness of our brand, our ability to attract visitors to our digital platform, and our ability to convert visitors to paying customers. Active Customer counts are based on deduplication logic using customer account and guest checkout name, address, and email information. Average Order Value (AOV) We define AOV as the sum of the total gross sales before returns across our platform in a given period, plus shipping revenue, less discounts and markdowns, divided by the Total Orders Placed (as defined below) in that period. AOV reflects the average basket size of our customers. AOV may fluctuate as we continue investing in the development and introduction of new Lulus merchandise and as a result of our promotional discount activity. Free Cash Flow Free Cash Flow is a non-GAAP financial measure that we calculate as net cash provided by (used in) operating activities less cash used for capitalized software development costs and purchases of property and equipment. We view Free Cash Flow as an important indicator of our liquidity because it measures the amount of cash we generate. Gross Margin We define Gross Margin as gross profit as a percentage of our net revenue. Gross profit is equal to our net revenue less cost of revenue. Certain of our competitors and other retailers may report cost of revenue differently than we do. As a result, the reporting of our gross profit and Gross Margin may not be comparable to other companies. Net Debt Net Debt is a non-GAAP financial measure that is defined as total debt, which currently consists of borrowings under the Company’s 2025 credit agreement with White Oak Commercial Finance, LLC, as amended, less cash and cash equivalents. We consider Net Debt to be an important supplemental measure of our financial position, which allows us to analyze our leverage. Total Orders Placed We define Total Orders Placed as the number of customer orders placed across our platform during a particular period. An order is counted on the day the customer places the order. We do not adjust the number of Total Orders Placed for any cancellation or return that may have occurred subsequent to a customer placing an order. We consider Total Orders Placed as a key performance metric on the basis that it is directly related to our ability to attract and retain customers as well as drive purchase frequency. Total Orders Placed, together with AOV, is an indicator of the net revenue we expect to generate in a particular period. Note: Refer to “Use of Non-GAAP Financial Measures and Other Operating Metrics” section above for definitions of these metrics. LULU’S FASHION LOUNGE HOLDINGS, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) A reconciliation to non-GAAP Net Debt from total debt as of December 28, 2025 and December 29, 2024 is as follows: A reconciliation to non-GAAP Adjusted EBITDA from net loss for the thirteen and fifty-two weeks ended December 28, 2025 and December 29, 2024 is as follows: A reconciliation to non-GAAP Free Cash Flow from net cash provided by (used in) operating activities for the thirteen and fifty-two weeks ended December 28, 2025 and December 29, 2024 is as follows: Contact [email protected]

Achieved three consecutive quarters of positive adjusted EBITDA by focusing on high-margin event-driven categories like bridesmaid and special occasion dressing. Attributed the 640 basis point gross margin expansion to sustained consumer demand for higher margin categories, pricing and margin enhancement initiatives, disciplined markdown strategies, and improved outbound shipping costs. Executed a significant operational simplification, including distribution center consolidation and a 12% year-over-year reduction in operating expenses. Managed a strategic pullback in footwear and casual apparel categories, reducing SKU counts by 17% and 39% respectively to clear underperforming inventory. Expanded the wholesale channel to nine major retail partners, delivering triple-digit revenue growth and increasing brand reach beyond direct-to-consumer roots. Improved return rates by 80 basis points sequentially through enhanced fit quality, updated return policies, and customer abuse prevention measures. Navigated top-line pressure by prioritizing profitability and assortment quality over short-term revenue growth during a transitional year. Expects full-year 2026 adjusted EBITDA to inflect to positive, supported by a leaner cost structure and improved product margins. Anticipates top-line pressure from casual and footwear categories to ease by the end of Q2 2026, positioning the company for a healthier revenue trajectory in the second half. Projects a negative adjusted EBITDA in Q1 2026 due to seasonal lows and aggressive clearance of slow-moving inventory, though results are expected to improve year-over-year. Assumes a continued shift toward event-adjacent and 'dress-forward' styles in the casual segment to better align with core customer preferences and higher-margin profiles. Plans to leverage the new Amazon storefront and expanded Nordstrom partnership to drive profitable wholesale volume and brand awareness. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Refined the methodology for estimating store credit breakage in Q4, which increased reported breakage beyond historical levels. Monitoring high uncertainty regarding potential tariff changes, freight volatility, and cautious consumer spending as potential headwinds. Proposed a significant reduction in authorized common shares from 250 million to 15 million, pending stockholder approval at the 2026 annual meeting. Transitioned to a new credit agreement with White Oak Commercial Finance, resulting in a $900,000 write-off of prior loan amendment fees. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.