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• Q4 Net Revenue: $66.1 million, down 12% year over year.

• Full-Year Net Revenue: $315.9 million, down 11% versus 2023.

• Q4 Gross Margin: 37.9%, down 120 basis points year over year.

• Full-Year Gross Margin: 41.2%, down 50 basis points compared to 2023.

• Q4 Net Loss: $31.9 million, including a $28.4 million goodwill impairment charge.

• Adjusted Q4 Net Loss: $3.5 million, excluding goodwill impairment.

• Full-Year Net Loss: $55.3 million, including goodwill impairment.

• Adjusted Full-Year Net Loss: $26.9 million, excluding goodwill impairment.

• Q4 Adjusted EBITDA Loss: $3.3 million, with a margin of negative 5%.

• Full-Year Adjusted EBITDA Loss: $9.7 million, with a margin of negative 3.1%.

• Q4 Interest Expense: $313,000.

• Q4 Diluted Loss Per Share: $0.76; adjusted loss per share $0.08 excluding goodwill impairment.

• Q4 Net Cash Used in Operating Activities: $2.5 million.

• Q4 Free Cash Flow Used: $3 million, improved by $3.7 million year over year.

• Inventory Balance at Quarter End: $34 million, down $1.4 million year over year.

• Q4 Wholesale Revenue Growth: 76% year over year.

• 2025 Net Revenue Guidance: $280 to $310 million, a decrease of 11% to 2% compared to 2024.

• 2025 Adjusted EBITDA Outlook: $0 to $6 million, an increase of $9.7 million to $15.7 million compared to 2024.

• Warning! GuruFocus has detected 3 Warning Signs with LVLU.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lulus Fashion Lounge Holdings Inc (NASDAQ:LVLU) achieved positive double-digit sales growth in special occasion, bridesmaids, and bridal categories, reinforcing its leadership in event dressing.

• The company successfully reduced inventory by 4% year over year through calculated markdowns and promotions, maintaining healthy inventory levels.

• Wholesale revenue grew 76% year over year, driven by high double-digit gains among major partners and strong momentum in specialty retail.

• The company made significant progress in diversifying its sourcing out of China, which is expected to mitigate tariff-related pressures.

• Lulus Fashion Lounge Holdings Inc (NASDAQ:LVLU) launched successful brand campaigns and collaborations, driving higher reach, engagement, and media interest.

Negative Points

• Net revenue for Q4 was down 12% year over year, driven by a decrease in total orders placed and a decrease in average order value.

• Gross margin declined 120 basis points for the quarter, impacted by higher markdown sales and increased promotional activity.

• The company reported a net loss of $31.9 million for Q4, worsened by a non-cash $28.4 million goodwill impairment charge.

• Separates and shoe categories continued to weigh on performance, driving the majority of the year-over-year net sales declines.

• Profitability remained under pressure due to elevated markdown activity and the initial one-time costs related to the consolidation of distribution centers.