Lulu's Q2 Revenue Plunges 17% on Fewer Orders, Higher Returns
LVLU has more than doubled off its 52-week low of $3.28.
Summary
Lulu's Fashion Lounge reported Q2 revenue of $67.81 million, down 17% year-over-year, driven by a 17% drop in total orders and higher return rates. Gross margin expanded 330 basis points to 48.6%, the highest Q2 rate since 2021, reflecting disciplined inventory management. Net loss narrowed to $1.48 million and adjusted EBITDA turned positive at $984,000. The company reaffirmed its 2026 outlook for positive adjusted EBITDA, compared to a $1.2 million loss in 2025. Active customers totaled 2.2 million in Q2. This follows the Nasdaq equity deficiency notice in May and the board's strategic alternatives review announced in July, adding pressure on the company to demonstrate operational improvement. The revenue decline is material for a company with a market cap around $48 million, but the margin expansion and positive EBITDA provide some offset.
At the time of this announcement, LVLU was trading at $16.94 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $48.5M. The 52-week trading range was $3.28 to $32.32. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.