Lulus Fashion Lounge Holdings Inc Reports Q2 2025 Earnings: Navigating Growth and Challenges with Positive Adjusted EBITDA

Lulus Fashion Lounge Holdings reported positive adjusted EBITDA for Q2, with special occasion and bridesmaids categories driving growth. Net revenue decreased 11% YoY, and gross margin was down 20 basis points. The company is addressing softness in casual wear and footwear businesses and progressing with refinancing efforts. Product margins improved for the third consecutive quarter, and return rates declined for the fourth consecutive quarter.

Lulu's Fashion Lounge Holdings, Inc. (Nasdaq: LVLU) reported its second-quarter 2025 financial results, highlighting a mixed performance with positive adjusted EBITDA and a focus on strategic repositioning. The company's net revenue decreased 11% year-over-year (YoY) to $81.5 million, driven by a 16% decrease in total orders placed, offset by a 1% increase in average order value (AOV) from $143 to $145 [1].

Special occasion and bridesmaid categories drove growth, while casual wear and footwear remained soft. Gross profit decreased by 12% to $36.9 million, and gross margin declined by 20 basis points to 45.3%, compared to the same period last year. The company reported a net loss of $3.0 million, a significant improvement from the $10.8 million loss in the same period last year [1].

Lulus achieved its expectations for positive adjusted EBITDA of $0.5 million, a turnaround from the ($0.2) million loss in the same period last year. The company also saw a reduction in total debt by $4.3 million to $5.8 million and an increase in net debt by $2.7 million to $4.2 million [1].

Crystal Landsem, CEO and Interim CFO of Lulus, commented, "In the second quarter, we saw meaningful sequential improvement in our quarterly year-over-year net revenue comparison, and we continued to see positive sales momentum in occasion dresses, led by our bridesmaid category. This performance was offset by continued softness in casual wear and footwear, which we are actively repositioning to better align with our strengths in event attire" [1].

Lulus is actively managing its business and navigating the dynamic environment. The company expects positive adjusted EBITDA in the third quarter 2025 and forecasts full-year 2025 capital expenditures to be approximately $2.5 million. The company is also negotiating a new asset-based revolving credit facility to strengthen its liquidity position [1].

References:
[1] https://investors.lulus.com/news-releases/news-release-details/lulus-reports-second-quarter-2025-results