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.
LULU'S FASHION LOUNGE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share data)
Fiscal Quarters Ended
--------------------------
June 28, June 29,
2026 2025
----------- -------------
Net revenue $ 67,807 $ 81,520
Cost of revenue 34,852 44,588
--------- ---------
Gross profit 32,955 36,932
Selling and marketing expenses 18,381 21,993
General and administrative expenses 15,818 17,562
--------- ---------
Loss from operations (1,244) (2,623)
Interest expense (302) (856)
Other income, net 54 546
--------- ---------
Loss before benefit (provision) for
income taxes (1,492) (2,933)
Income tax benefit (provision) 9 (62)
--------- ---------
Net loss and comprehensive loss (1,483) (2,995)
Basic loss per share((1) $ (0.52) $ (1.08)
========= =========
Diluted loss per share((1) $ (0.52) $ (1.08)
========= =========
Basic weighted-average shares
outstanding((1) 2,864,484 2,782,417
========= =========
Diluted weighted-average shares
outstanding((1) 2,864,484 2,782,417
========= =========
(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.
LULU'S FASHION LOUNGE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
June 28, December 28,
2026 2025
---------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 4,123 $ 2,661
Accounts receivable 2,734 1,712
Inventory, net 28,642 32,444
Assets for recovery 3,593 2,197
Income tax refund receivable, net 268 1,028
Prepaids and other current assets 3,686 3,606
-------- ---------
Total current assets 43,046 43,648
Property and equipment, net 1,854 2,311
Goodwill 7,056 7,056
Tradename 18,509 18,509