Lulu's Fashion Lounge Q3 revenue falls, net loss widens on lower orders, higher return rates

Overview

• US women's apparel retailer's Q3 revenue fell 20% yr/yr due to lower orders, higher return rates

• Company posted wider Q3 net loss and negative adjusted EBITDA as revenue pressures persisted

• Gross margin rose 230 bps to 44.9%, inventory down 17% yr/yr

Outlook

• Company lowers 2026 revenue and Adjusted EBITDA outlook below prior expectations

• Lulus expects 2027 revenue decline to moderate as new products and wholesale growth offset headwinds

• Company sees 2026 capital expenditures between $1.5 mln and $2.0 mln

Result Drivers

• ASSORTMENT DECISIONS - Co said historical product assortment decisions continued to weigh on customer engagement, repeat purchases, and revenue

• ORDER AND RETURN TRENDS - Q3 revenue decline driven by 20% decrease in total orders placed and higher return rates, primarily from sales mix

• WHOLESALE GROWTH - Co said wholesale business saw meaningful growth, providing an avenue for future revenue

Company press release:

Key Details

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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.)