Lulu's Fashion Lounge Q2 revenue falls on fewer orders and higher returns
Lulu's Fashion Lounge Q2 revenue falls on fewer orders and higher returns
Overview
US women's apparel retailer's Q2 revenue fell 17% yr/yr, driven by fewer orders and higher returns
Gross margin expanded 330 bps yr/yr to 48.6%, highest Q2 rate since 2021
Net loss narrowed and adjusted EBITDA turned positive, reflecting improved profitability and inventory management
Outlook
Company reaffirms 2026 outlook for positive Adjusted EBITDA, compared to $(1.2) mln in 2025
Company expects 2026 net revenue growth trend to improve year-over-year versus 11% decrease in 2025
Lulus forecasts 2026 capital expenditures of $2.0 mln to $2.5 mln, in line with 2025
Result Drivers
ORDER DECLINE AND RETURNS - Revenue fell due to a 17% decrease in total orders placed and higher return rates, partially offset by a slight increase in average order value and wholesale revenue
MARGIN EXPANSION - Gross margin rose 330 bps yr/yr to 48.6%, attributed to disciplined inventory management and aligning assortment with customer demand
WHOLESALE GROWTH - Wholesale business nearly doubled yr/yr, helping offset weaker direct channel sales
Company press release: ID:nGNX88V4TV
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $67.81 mln |
|
Q2 Net Loss |
| $1.48 mln |
|
Q2 Adjusted EBITDA |
| $984,000 |
|
Q2 Adjusted EBITDA Margin |
| 1.50% |
|
Q2 Gross Profit |
| $32.96 mln |
|
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)