Lulu’s Fashion Lounge Holdings, Inc. reported its financial results for the thirteen and thirty-nine weeks ended September 29, 2024, revealing a decline in revenue and increased net losses compared to the previous fiscal period. For the thirteen weeks, net revenue was $80.5 million, a decrease of 3% from $83.1 million in the same period last year. Gross profit also fell to $30.6 million from $33.5 million, reflecting a 9% decline. The company recorded a loss from operations of $6.8 million, worsening from a loss of $4.9 million in the prior year. The net loss for the quarter was $6.9 million, compared to $3.9 million in the same period of 2023.

For the thirty-nine weeks ended September 29, 2024, net revenue totaled $249.7 million, down 11% from $280.2 million in the previous year. Gross profit decreased to $105.2 million from $118.9 million, with a loss from operations of $17.5 million compared to $12.4 million in the prior year. The net loss for this period was $23.4 million, significantly higher than the $12.1 million loss reported for the same period in 2023.

The company’s total assets increased to $153.5 million as of September 29, 2024, up from $149.4 million at the end of 2023. Current assets rose to $65.3 million, primarily due to a significant increase in cash and cash equivalents, which reached $6.3 million, compared to $2.5 million at the end of 2023. However, total liabilities also increased to $109.8 million from $88.5 million, leading to a decrease in stockholders' equity to $43.8 million from $61.0 million.

Lulu’s has been actively managing its financial position, entering into a $50 million revolving credit facility in November 2021, which was amended to $15 million in July 2024, with a further reduction to $10 million scheduled for March 2025. As of September 29, 2024, the company was not in compliance with its preliminary financial covenants and has implemented cost reduction measures, including adjustments to marketing and other expenses.

The company reported a net cash provided by operating activities of $5.1 million for the thirty-nine weeks, a decrease from $21.1 million in the previous year. Additionally, net cash used in investing activities decreased slightly, while net cash provided by financing activities increased significantly due to higher borrowings.

Overall, Lulu’s Fashion Lounge is navigating a challenging market environment, with strategic adjustments in place to address its financial performance and operational efficiency.