Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the
“Company”) (Nasdaq: LVLU) today reported financial results for the
second quarter ended July 2, 2023, and updated its full-year 2023
financial guidance.
Crystal Landsem, CEO of Lulus, said:
“As previously disclosed in our preliminary
release, during the second quarter of 2023, we experienced
headwinds related to choppiness in consumer demand, macroeconomic
uncertainties and elevated return rates that led to year-over-year
net revenue and Adjusted EBITDA declines that missed our
expectations. Topline demand fell short of our expectations and
return rates increased by more than anticipated, which drove a 19%
year-over-year decline in net revenue in the second quarter.
Nevertheless, we are pleased with the progress that was made in the
quarter with a 300bps sequential Gross Margin rate improvement as a
result of higher merchandise margin and improved per order shipping
costs driven by the actions we have taken to optimize our shipping
network. Our business continued to generate liquidity as evidenced
by a $14 million year-over-year increase in quarterly cash provided
by operating activities and a $15 million year-over-year increase
in quarterly Free Cash Flow. During the second quarter, we paid
down our revolving line of credit by $5 million and reduced our Net
Debt by approximately $3.1 million.
We have also accelerated efforts to adapt to
changing consumer behaviors and meet our customer where and how
they shop. In early July, as part of our strategy to explore
new growth opportunities and strengthen our brand awareness, we
signed a short-term lease for a retail location on Melrose Avenue
in Los Angeles to connect with our customers in-person. We are
excited to find new and creative ways to engage and delight our
customers, enhance our brand’s reputation and further support our
growth.”
Second Quarter 2023 Highlights:
- Net revenue of $106.1 million, a
19% decrease compared to the second quarter of 2022, driven by a
16% decrease in Total Orders Placed, a 1% decrease in Average Order
Value (“AOV”), as well as higher markdowns and return rates. Net
revenue increased 2.5% from the second quarter of 2021.
- Active Customers of 3.1 million, a
5% decrease compared to the second quarter of 2022 and a 45%
increase from the second quarter of 2021.
- AOV of $135, a decrease of 1%
compared to $137 in the second quarter of 2022 and a 12% increase
from the second quarter of 2021.
- Gross Margin decreased 110 basis
points to 44.7% and gross profit decreased 21%, in each case
compared to the second quarter of 2022 and improved sequentially
compared to the first quarter 2023 by 300 basis points and 25%,
respectively.
- Interest expense of $0.4 million,
compared to $0.2 million in the second quarter of 2022.
- Net loss of $2.6 million, compared
to net income of $6.0 million in the second quarter of 2022.
- Adjusted EBITDA of $4.2 million,
compared to $14.8 million in the second quarter of 2022.
- Net cash provided by operating
activities was $4.6 million, compared to $9.7 million of net cash
used by operating activities in the second quarter of 2022. Free
Cash Flow was $4.0 million, compared to ($10.7) million in the
second quarter of 2022.
- Revolving line of credit balance
decreased by $5 million and $10 million during the thirteen and
twenty-six weeks ended July 2, 2023, respectively, from the balance
as of January 1, 2023. Net Debt decreased by $3.1 million and $5.7
million during the thirteen and twenty-six weeks ended July 2,
2023, respectively, from the balance as of January 1, 2023.
|
|
Thirteen Weeks Ended |
|
|
July 2, 2023 |
|
July 3, 2022 |
|
YoY Change |
|
|
(In thousands, except percentages) |
Net revenue |
|
$ |
106,122 |
|
|
$ |
131,512 |
|
|
(19 |
)% |
Gross profit |
|
$ |
47,396 |
|
|
$ |
60,167 |
|
|
(21 |
)% |
Gross Margin* |
|
|
44.7 |
% |
|
|
45.8 |
% |
|
(110 |
)bps |
Net (loss) income |
|
$ |
(2,597 |
) |
|
$ |
5,999 |
|
|
NM |
|
Adjusted EBITDA* |
|
$ |
4,219 |
|
|
$ |
14,793 |
|
|
(71 |
)% |
Diluted net (loss) income per
share attributable to common stockholders |
|
$ |
(0.07 |
) |
|
$ |
0.15 |
|
|
NM |
|
Active Customers* |
|
|
3,080 |
|
|
|
3,250 |
|
|
(5 |
)% |
Net cash provided by (used in)
operating activities |
|
$ |
4,646 |
|
|
$ |
(9,660 |
) |
|
NM |
|
Free Cash Flow* |
|
$ |
3,963 |
|
|
$ |
(10,725 |
) |
|
NM |
|
NM – not meaningful* Note: Refer to “Use of Non-GAAP Financial
Measures and Other Operating Metrics” section below for definitions
of these metrics. |
|
Updating Financial Outlook for Full Year
2023:
We continue to view the current macroeconomic
headwinds as temporary factors impacting our business. We remain
highly confident in the long-term growth trajectory of our business
and are as committed as ever to growing our brand. However, in
light of our soft year-to-date results and our expectations of a
continued choppy macroeconomic environment, we are providing a more
cautious outlook for the full year 2023.
- We expect net revenue between $355
million and $375 million, a decline of between 19% and 15% compared
to 2022.
- Adjusted EBITDA is expected to be
between $5 million and $10 million, a decline of between 83% and
66% compared to 2022, reflecting investments in key growth
opportunities.
- We expect reported interest expense
to be approximately $1.6 million, a 45% increase compared to 2022,
which reflects the impact of higher interest rates offsetting lower
expected revolver balances.
- We expect capital expenditures to
be between $5.0 million and $6.0 million, an increase of between 0%
and 20% compared to 2022.
Forecasting future results or trends is
inherently difficult for any business, and actual results or trends
may differ materially from those forecasted. Lulus’ outlook is
based on current indications for its business. Lulus’ outlook
factors in our current best estimates for anticipated headwinds,
including those related to the level of demand, spending and
returns by our customers, macroeconomic uncertainties, inflation,
supply chain pressures, and shipping costs. Given the volatile
nature of current consumer demand and potential for further impacts
to consumer behavior due to pockets of continued inflation, higher
interest rates, the resumption of student loan interest and
payments, combined with less predictable consumer purchasing
behavior, Lulus’ financial outlook is subject to change.
LULU’S FASHION LOUNGE
HOLDINGS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE (LOSS)
INCOME(Unaudited)(In thousands,
except share and per share data) |
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
July 2, |
|
July 3, |
|
July 2, |
|
July 3, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net revenue |
|
$ |
106,122 |
|
|
$ |
131,512 |
|
|
$ |
197,098 |
|
|
$ |
243,414 |
|
Cost of revenue |
|
|
58,726 |
|
|
|
71,345 |
|
|
|
111,741 |
|
|
|
130,269 |
|
Gross profit |
|
|
47,396 |
|
|
|
60,167 |
|
|
|
85,357 |
|
|
|
113,145 |
|
Selling and marketing
expenses |
|
|
24,670 |
|
|
|
25,851 |
|
|
|
44,159 |
|
|
|
47,737 |
|
General and administrative
expenses |
|
|
24,396 |
|
|
|
23,392 |
|
|
|
48,744 |
|
|
|
51,226 |
|
(Loss) income from
operations |
|
|
(1,670 |
) |
|
|
10,924 |
|
|
|
(7,546 |
) |
|
|
14,182 |
|
Interest expense |
|
|
426 |
|
|
|
157 |
|
|
|
949 |
|
|
|
365 |
|
Other income, net |
|
|
(373 |
) |
|
|
(27 |
) |
|
|
(446 |
) |
|
|
(81 |
) |
(Loss) income before provision
for income taxes |
|
|
(1,723 |
) |
|
|
10,794 |
|
|
|
(8,049 |
) |
|
|
13,898 |
|
Income tax provision |
|
|
874 |
|
|
|
4,795 |
|
|
|
166 |
|
|
|
5,856 |
|
Net (loss) income and
comprehensive (loss) income |
|
$ |
(2,597 |
) |
|
$ |
5,999 |
|
|
$ |
(8,215 |
) |
|
$ |
8,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
(0.07 |
) |
|
$ |
0.16 |
|
|
$ |
(0.21 |
) |
|
$ |
0.21 |
|
Diluted earnings per share |
|
$ |
(0.07 |
) |
|
$ |
0.15 |
|
|
$ |
(0.21 |
) |
|
$ |
0.21 |
|
Basic weighted-average shares outstanding |
|
|
39,680,908 |
|
|
|
38,535,409 |
|
|
|
39,457,607 |
|
|
|
38,316,895 |
|
Diluted weighted-average shares outstanding |
|
|
39,680,908 |
|
|
|
38,992,901 |
|
|
|
39,457,607 |
|
|
|
38,555,919 |
|
LULU’S FASHION LOUNGE
HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)(In thousands,
except share and per share data) |
|
|
July 2, |
|
January
1, |
|
|
2023 |
|
2023 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,947 |
|
|
$ |
10,219 |
|
Accounts receivable |
|
|
3,111 |
|
|
|
3,908 |
|
Inventory, net |
|
|
46,232 |
|
|
|
43,186 |
|
Assets for recovery |
|
|
4,749 |
|
|
|
3,890 |
|
Income tax refund receivable |
|
|
3,459 |
|
|
|
4,078 |
|
Prepaids and other current assets |
|
|
4,104 |
|
|
|
3,738 |
|
Total current assets |
|
|
67,602 |
|
|
|
69,019 |
|
Property and equipment, net |
|
|
4,134 |
|
|
|
4,391 |
|
Goodwill |
|
|
35,430 |
|
|
|
35,430 |
|
Tradename |
|
|
18,509 |
|
|
|
18,509 |
|
Intangible assets, net |
|
|
3,212 |
|
|
|
3,090 |
|
Lease right-of-use assets |
|
|
31,119 |
|
|
|
32,514 |
|
Other noncurrent assets |
|
|
4,696 |
|
|
|
4,251 |
|
Total assets |
|
$ |
164,702 |
|
|
$ |
167,204 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
9,235 |
|
|
$ |
5,320 |
|
Accrued expenses and other current liabilities |
|
|
18,394 |
|
|
|
17,976 |
|
Returns reserve |
|
|
11,998 |
|
|
|
9,066 |
|
Stored-value card liability |
|
|
12,356 |
|
|
|
10,828 |
|
Lease liabilities, current |
|
|
5,054 |
|
|
|
4,456 |
|
Total current liabilities |
|
|
57,037 |
|
|
|
47,646 |
|
Revolving line of credit |
|
|
15,000 |
|
|
|
25,000 |
|
Lease liabilities, noncurrent |
|
|
27,187 |
|
|
|
29,042 |
|
Other noncurrent liabilities |
|
|
804 |
|
|
|
623 |
|
Total liabilities |
|
|
100,028 |
|
|
|
102,311 |
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
Preferred stock: $0.001 par value, 10,000,000 shares authorized,
and no shares issued or outstanding |
|
|
— |
|
|
|
— |
|
Common stock: $0.001 par value, 250,000,000 shares authorized, and
40,140,911 and 39,259,328 shares issued and outstanding as of July
2, 2023 and January 1, 2023, respectively |
|
|
40 |
|
|
|
39 |
|
Additional paid-in capital |
|
|
246,720 |
|
|
|
238,725 |
|
Accumulated deficit |
|
|
(182,086 |
) |
|
|
(173,871 |
) |
Total stockholders' equity |
|
|
64,674 |
|
|
|
64,893 |
|
Total liabilities and stockholders' equity |
|
$ |
164,702 |
|
|
$ |
167,204 |
|
LULU’S FASHION LOUNGE
HOLDINGS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWS(Unaudited)(In
thousands) |
|
|
Twenty-Six Weeks Ended |
|
|
July 2, |
|
July 3, |
|
|
2023 |
|
2022 |
Cash Flows from
Operating Activities |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(8,215 |
) |
|
$ |
8,042 |
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,306 |
|
|
|
1,850 |
|
Noncash lease expense |
|
|
1,753 |
|
|
|
1,545 |
|
Amortization of debt discount and debt issuance costs |
|
|
78 |
|
|
|
79 |
|
Equity-based compensation expense |
|
|
9,029 |
|
|
|
8,591 |
|
Deferred income taxes |
|
|
(1,569 |
) |
|
|
(1,298 |
) |
Loss on disposal of property and equipment |
|
|
— |
|
|
|
6 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
797 |
|
|
|
(858 |
) |
Inventories |
|
|
(3,046 |
) |
|
|
(26,399 |
) |
Assets for recovery |
|
|
(859 |
) |
|
|
(1,637 |
) |
Income taxes payable |
|
|
1,653 |
|
|
|
2,845 |
|
Prepaid and other current assets |
|
|
(497 |
) |
|
|
396 |
|
Accounts payable |
|
|
3,916 |
|
|
|
4,188 |
|
Accrued expenses and other current liabilities |
|
|
4,756 |
|
|
|
14,730 |
|
Operating lease liabilities |
|
|
(1,635 |
) |
|
|
(1,038 |
) |
Other noncurrent liabilities |
|
|
(116 |
) |
|
|
(454 |
) |
Net cash provided by operating activities |
|
|
8,351 |
|
|
|
10,588 |
|
Cash Flows from
Investing Activities |
|
|
|
|
|
|
Capitalized software development costs |
|
|
(1,026 |
) |
|
|
(1,247 |
) |
Purchases of property and equipment |
|
|
(726 |
) |
|
|
(1,394 |
) |
Other |
|
|
— |
|
|
|
(97 |
) |
Net cash used in investing activities |
|
|
(1,752 |
) |
|
|
(2,738 |
) |
Cash Flows from
Financing Activities |
|
|
|
|
|
|
Proceeds from borrowings on revolving line of credit |
|
|
5,000 |
|
|
|
10,000 |
|
Repayments on revolving line of credit |
|
|
(15,000 |
) |
|
|
(20,000 |
) |
Proceeds from issuance of common stock under employee stock
purchase plan (ESPP) |
|
|
269 |
|
|
|
— |
|
Principal payments on finance lease obligations |
|
|
(497 |
) |
|
|
(344 |
) |
Payment of offering costs related to the IPO |
|
|
— |
|
|
|
(542 |
) |
Withholding tax payments related to vesting of RSUs |
|
|
(637 |
) |
|
|
— |
|
Other |
|
|
(6 |
) |
|
|
(23 |
) |
Net cash used in financing activities |
|
|
(10,871 |
) |
|
|
(10,909 |
) |
Net decrease in cash, cash
equivalents and restricted cash |
|
|
(4,272 |
) |
|
|
(3,059 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
10,219 |
|
|
|
11,908 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
5,947 |
|
|
$ |
8,849 |
|
|
|
|
|
|
|
|
Reconciliation of cash, cash
equivalents and restricted cash |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,947 |
|
|
$ |
8,343 |
|
Restricted cash |
|
|
— |
|
|
|
506 |
|
Total cash, cash equivalents
and restricted cash, end of period |
|
$ |
5,947 |
|
|
$ |
8,849 |
|
|
|
|
|
|
|
|
|
|
Webcast & Conference Call
Information
The Company will host a conference call and live
webcast with the investment community at 5:00 p.m. Eastern Time
today, Tuesday, August 8, 2023, to discuss its second quarter 2023
results. The live webcast will be accessible through the Investor
Relations section of the Company’s website at
https://investors.lulus.com/. To access the call through a
conference line, dial 1-877-407-0792 (in the U.S.) or
1-201-689-8263 (international callers). A replay of the conference
call will be posted shortly after the call and will be available
for seven days following the call. To access the replay, dial
1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international
callers). The access code for the replay is 13739396.
About Lulus
Lulus is a customer driven, digitally native
fashion brand for women. Based in California and serving millions
of customers worldwide, Lulus develops styles with the customer in
mind, using direct consumer feedback and insights to refine its
products. With fresh inventory hitting the site almost daily, Lulus
features on-trend, high-quality, must-have pieces, at affordable
prices. As a brand built on customer feedback, Lulus puts an
extreme focus on providing exceptional customer service and a
personalized shopping experience. The brand’s world class personal
stylists, bridal concierge, and customer care team take pride in
offering a personalized shopping experience to every customer.
Lulus was founded in 1996. Lulus is a registered trademark of
Lulu’s Fashion Lounge, LLC. All rights reserved.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical or current
fact included in this press release are forward-looking statements,
including but not limited to statements regarding our expectation
of continued choppiness in consumer demand, macroeconomic
uncertainties and elevated return rates, and our financial outlook
for the fiscal year ending December 31, 2023. These statements
are neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause
Lulus’ actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements, including
but not limited to the following: risks related to our operations
and financial results; our ability to successfully maintain our
desired merchandise assortment or manage our inventory effectively;
demand for our products, including our ability to anticipate,
identify, measure, and respond quickly to fashion trends, customer
preferences and demands; our ability to anticipate, measure and
establish appropriate policies for customer merchandise returns;
general economic conditions, including inflation; our fluctuating
operating results; seasonality in our business; our ability to
acquire products on reasonable terms; our e-commerce business
model; our ability to attract and retain customers in a cost
effective manner; the strength of our brand; competition; fraud;
system interruptions; system security risks including security
breaches; our ability to fulfill orders; and the continued impact
of the COVID-19 pandemic on our business. These and other important
factors discussed under the caption “Risk Factors” in Lulus’ Annual
Report on Form 10-K for the fiscal year ended January 1, 2023, and
its other filings with the Securities and Exchange Commission could
cause actual results to differ materially from those indicated by
the forward-looking statements made in this press release. Any such
forward-looking statements represent management’s estimates as of
the date of this press release. While Lulus may elect to update
such forward-looking statements at some point in the future, it
disclaims any obligation to do so, except as required by law, even
if subsequent events cause its views to change.
Use of Non-GAAP Financial Measures and Other Operating
Metrics
To supplement our condensed consolidated
financial statements, which are prepared and presented in
accordance with accounting principles generally accepted in the
United States of America (“GAAP”), we reference in this press
release and the accompanying tables the following non-GAAP
financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Net
Debt and Free Cash Flow. The presentation of this non-GAAP
financial information is not intended to be considered in isolation
or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP, and our non-GAAP
measures may be different from non-GAAP measures used by other
companies. We use these non-GAAP financial measures to evaluate our
operating performance, generate future operating plans and make
strategic decisions regarding the allocation of capital. Our
management believes that these non-GAAP financial measures provide
meaningful supplemental information regarding our performance and
liquidity by excluding certain expenses that may not be indicative
of our ongoing core operating performance. We believe that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance and when analyzing
historical performance and liquidity and when planning,
forecasting, and analyzing future periods. For a reconciliation of
these non-GAAP financial measures to GAAP measures, please see the
tables captioned “Reconciliation of Non-GAAP Financial Measures”
included at the end of this release. Definitions of our non-GAAP
financial measures and other operating metrics are presented below.
A reconciliation of Adjusted EBITDA guidance to net (loss) income
on a forward-looking basis cannot be provided without unreasonable
efforts, as we are unable to provide reconciling information with
respect to equity-based compensation expense and income tax, all of
which are adjustments to Adjusted EBITDA. We also use certain key
operating metrics, including Gross Margin, Active Customers,
Average Order Value, and Total Orders Placed.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure
that we calculate as net (loss) income before interest expense,
income taxes, depreciation and amortization, adjusted to exclude
the effects of equity-based compensation expense. Adjusted EBITDA
is a key measure used by management to evaluate our operating
performance, generate future operating plans and make strategic
decisions regarding the allocation of capital. In particular, the
exclusion of certain expenses in calculating Adjusted EBITDA
facilitates operating performance comparisons on a period-to-period
basis and, in the case of exclusion of the impact of equity-based
compensation, excludes an item that we do not consider to be
indicative of our core operating performance.
Adjusted EBITDA Margin
Adjusted EBITDA Margin is
a non-GAAP financial measure that we calculate as
Adjusted EBITDA (as defined above) as a percentage of our net
revenue.
Active Customers
We define Active Customers as the number of
customers who have made at least one purchase across our platform
in the prior 12-month period. We consider the number of Active
Customers to be a key performance metric on the basis that it is
directly related to consumer awareness of our brand, our ability to
attract visitors to our digital platform, and our ability to
convert visitors to paying customers. Active Customer counts are
based on de-duplication logic using customer account and guest
checkout name, address, and email information.
Average Order Value
We define Average Order Value (“AOV”) as the sum
of the total gross sales before returns across our platform in a
given period, plus shipping revenue, less discounts and markdowns,
divided by the Total Orders Placed (as defined below) in that
period. AOV reflects average basket size of our customers. AOV may
fluctuate as we continue investing in the development and
introduction of new Lulus merchandise and as a result of our
promotional discount activity.
Free Cash Flow
Free Cash Flow is a non-GAAP financial measure
that we calculate as net cash provided by (used in) operating
activities less cash used for capitalized software development
costs and purchases of property and equipment. We view Free Cash
Flow as an important indicator of our liquidity because it measures
the amount of cash we generate.
Gross Margin
We define Gross Margin as gross profit as
a percentage of our net revenue. Gross profit is equal to our
net revenue less cost of revenue. Certain of our competitors and
other retailers report cost of revenue differently than we do. As a
result, the reporting of our gross profit and Gross Margin may not
be comparable to other companies.
Net Debt
Net Debt is defined as total debt, which
currently consists of the revolving line of credit, long-term, less
cash and cash equivalents. We consider Net Debt to be an important
supplemental measure of our financial position, which allows us to
analyze our leverage.
Total Orders Placed
We define Total Orders Placed as the number of
customer orders placed across our platform during a particular
period. An order is counted on the day the customer places the
order. We do not adjust the number of Total Orders Placed for any
cancellation or return that may have occurred subsequent to a
customer placing an order. We consider Total Orders Placed as a key
performance metric on the basis that it is directly related to our
ability to attract and retain customers as well as drive purchase
frequency. Total Orders Placed, together with AOV, is an indicator
of the net revenue we expect to generate in a particular
period.
LULU’S FASHION LOUNGE
HOLDINGS, INC.KEY OPERATING AND FINANCIAL
METRICS(Unaudited) |
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
|
|
(In thousands, except Average Order Value
and percentages) |
|
Gross Margin |
|
|
44.7 |
% |
|
|
45.8 |
% |
|
|
43.3 |
% |
|
|
46.5 |
% |
Net (loss) income |
|
$ |
(2,597 |
) |
|
$ |
5,999 |
|
|
$ |
(8,215 |
) |
|
$ |
8,042 |
|
Adjusted EBITDA |
|
$ |
4,219 |
|
|
$ |
14,793 |
|
|
$ |
4,235 |
|
|
$ |
24,704 |
|
Adjusted EBITDA Margin |
|
|
4.0 |
% |
|
|
11.2 |
% |
|
|
2.1 |
% |
|
|
10.1 |
% |
Average Order Value |
|
$ |
135 |
|
|
$ |
137 |
|
|
$ |
132 |
|
|
$ |
135 |
|
Active Customers |
|
|
3,080 |
|
|
|
3,250 |
|
|
|
3,080 |
|
|
|
3,250 |
|
Note: Refer to “Use of Non-GAAP Financial Measures and Other
Operating Metrics” section above for definitions of these
metrics. |
LULU’S FASHION LOUNGE
HOLDINGS, INC.RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES(Unaudited) |
A reconciliation to non-GAAP Net Debt from Total Debt as of July 2,
2023, April 2, 2023 and January 1, 2023, respectively, is as
follows: |
|
|
As of |
|
|
July 2, 2023 |
|
April 2, 2023 |
|
January 1, 2023 |
|
|
(In thousands) |
Total Debt |
|
$ |
(15,000 |
) |
|
$ |
(20,000 |
) |
|
$ |
(25,000 |
) |
Cash and cash equivalents |
|
|
5,947 |
|
|
|
7,829 |
|
|
|
10,219 |
|
Net Debt |
|
$ |
(9,053 |
) |
|
$ |
(12,171 |
) |
|
$ |
(14,781 |
) |
(1) Consists of the revolving line of credit, long term |
A reconciliation to non-GAAP Adjusted EBITDA from net (loss) income
for the thirteen and twenty-six weeks ended July 2, 2023 and July
3, 2022 is as follows: |
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
|
|
(In thousands, except percentages) |
Net (loss) income |
|
$ |
(2,597 |
) |
|
$ |
5,999 |
|
|
$ |
(8,215 |
) |
|
$ |
8,042 |
|
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
1,185 |
|
|
|
1,009 |
|
|
|
2,306 |
|
|
|
1,850 |
|
Interest expense |
|
|
426 |
|
|
|
157 |
|
|
|
949 |
|
|
|
365 |
|
Income tax provision |
|
|
874 |
|
|
|
4,795 |
|
|
|
166 |
|
|
|
5,856 |
|
Equity-based compensation
expense (1) |
|
|
4,331 |
|
|
|
2,833 |
|
|
|
9,029 |
|
|
|
8,591 |
|
Adjusted EBITDA |
|
$ |
4,219 |
|
|
$ |
14,793 |
|
|
$ |
4,235 |
|
|
$ |
24,704 |
|
Net (loss) income margin |
|
|
(2.4 |
)% |
|
|
4.6 |
% |
|
|
(4.2 |
)% |
|
|
3.3 |
% |
Adjusted EBITDA margin |
|
|
4.0 |
% |
|
|
11.2 |
% |
|
|
2.1 |
% |
|
|
10.1 |
% |
(1) The thirteen weeks ended July 2, 2023 and July 3, 2022 include
equity-based compensation expense for restricted stock unit (“RSU”)
awards granted during the period, as well as equity-based awards
granted in prior periods. The twenty-six weeks ended July 2, 2023
include equity-based compensation expense for performance stock
units and RSU awards granted during the period, accelerated expense
associated with the voluntary forfeiture of stock options, and
equity-based awards granted in prior periods. The twenty-six weeks
ended July 3, 2022 include equity-based compensation expense for
RSU awards granted during the period, as well as equity-based
awards granted in prior periods. |
A reconciliation to non-GAAP Free Cash Flow from net cash provided
by (used in) operating activities for the thirteen and twenty-six
weeks ended July 2, 2023 and July 3, 2022 is as follows: |
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
Net cash provided by (used in) operating activities |
|
$ |
4,646 |
|
|
$ |
(9,660 |
) |
|
$ |
8,351 |
|
|
$ |
10,588 |
|
Capitalized software
development costs |
|
|
(475 |
) |
|
|
(647 |
) |
|
|
(1,026 |
) |
|
|
(1,247 |
) |
Purchases of property and
equipment |
|
|
(208 |
) |
|
|
(418 |
) |
|
|
(726 |
) |
|
|
(1,394 |
) |
Free Cash Flow |
|
$ |
3,963 |
|
|
$ |
(10,725 |
) |
|
$ |
6,599 |
|
|
$ |
7,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact
Tiffany R. SmithChief Financial
Officerinvestors@lulus.com
Lulus Fashion Lounge (NASDAQ:LVLU)
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