Lulu's Fashion Lounge Reports 11% Drop in Revenue for Q2 2025, Misses Estimates

Lulus Fashion Lounge reported a GAAP revenue of $81.5 million in Q2 2025, a drop of 11% compared to the same period last year. Active customers fell 8%, and gross margin slipped by 0.2 percentage points to 45.3%. Net loss narrowed to $3.0 million, but EPS missed estimates by a wide margin at $1.08. The company attributed the decline to a 16% reduction in total orders placed and a slight rise in average order value.

Lulu's Fashion Lounge Holdings Inc. (LVLU) reported its Q2 2025 earnings on July 2, 2025, revealing a mixed performance with a significant drop in revenue and a narrowing of the net loss. The company's GAAP revenue for the quarter stood at $81.5 million, a 11% decrease compared to the same period last year [2]. This decline was primarily attributed to a 16% reduction in total orders placed, offset by a slight increase in average order value [2].

The company also experienced a decrease in active customers, with the number falling to 2.5 million, a 8% drop compared to the previous year [2]. Despite these challenges, Lulu's Fashion Lounge managed to improve its gross margin, which slipped by 0.2 percentage points to 45.3% [2]. The net loss narrowed to $3.0 million, a substantial reduction from the $10.8 million net loss reported in Q2 2024 [2].

Lulu's Fashion Lounge's earnings per share (EPS) for the quarter missed analysts' consensus estimates by a wide margin at $1.08 [2]. The company's CEO and Interim CFO, Crystal Landsem, attributed the decline in revenue to ongoing challenges in casual wear and footwear, while highlighting the positive momentum in occasion dresses, particularly bridesmaid attire [2].

The company's outlook for the third quarter remains positive, with expectations for positive Adjusted EBITDA and improvements in liquidity, boosted by the active negotiation of a new revolving credit facility [2]. Lulu's Fashion Lounge is also focusing on strategic initiatives to drive cost efficiency and expand its brand presence [2].

Institutional investors have been closely monitoring Lulu's Fashion Lounge's performance. In the most recent quarter, there were notable changes in hedge fund portfolios, with some investors adding shares while others reduced their positions [2].

References:
[1] https://www.marketbeat.com/stocks/NASDAQ/LVLU/earnings/
[2] https://www.quiverquant.com/news/Lulu%27s+Fashion+Lounge+Holdings%2C+Inc.+Reports+Q2+2025+Financial+Results+and+Adjusts+Outlook+for+Q3+and+Full+Year+Capital+Expenditures