Core Insights - Lulu's Fashion Lounge Holdings, Inc. has announced a strategic collaboration with Dillard's to enhance its wholesale strategy and expand its distribution footprint across key markets [1][3] - The collaboration will introduce Lulus' latest collections to over 30 Dillard's stores nationwide, focusing on special occasion and event apparel [2][3] - Lulus plans to launch an expanded Prom collection at Dillard's in early 2025, further solidifying its presence in the special occasion wear market [2] Company Strategy - The partnership with Dillard's is a pivotal step in Lulus' broader strategy to amplify its market presence and meet evolving customer demands [3] - Lulus aims to increase visibility and accessibility through key wholesale partnerships, building on the success of its "Friends for Life" campaign and "Lulus Loves" collaborations [4] - The company has launched various collaborations in 2024 with brands like Boys Lie, D'Amelio Footwear, and Levi's, focusing on expanding its reach [4] Market Position - Lulus reported a record second quarter for its special occasion and bridesmaids categories, reinforcing its position as a go-to destination for life's moments [3] - Dillard's, as one of the nation's largest fashion retailers, operates 273 stores across 30 states, providing a significant platform for Lulus to reach new audiences [7]

Core Viewpoint - Lulu's Fashion Lounge Holdings, Inc. has announced a reduction in the size of its Board of Directors from eleven to six members as part of a strategy to reduce costs and streamline operations while adhering to corporate governance best practices [1][3]. Board Restructuring - Five directors have voluntarily resigned, effective September 4, 2024, leaving a Board composed of six members: four independent directors and two non-independent directors, including the CEO [1]. - The remaining directors are expected to possess the necessary skills to support the execution of the company's strategic plan and drive profitability [3]. Cost Reduction Measures - The Board has suspended payment of retainers to directors under the Non-Employee Director Compensation Program until further notice as part of the company's commitment to cost reduction [3]. - The restructuring includes the dissolution of the Technology and Innovation Committee, with its responsibilities redistributed to the Audit Committee [4]. Shareholder Communication - The Chairman of the Board expressed gratitude to the departing members for their service and emphasized the importance of their insights to the company's success [2]. - The company aims to restore shareholder value and return to growth under the leadership of CEO Crystal Landsem [3]. Stock Sale Plan - Mr. McCreight has amended his existing 10b5-1 Sales Plan to allow for the sale of 62,500 shares of common stock, down from 633,000 shares, effective November 18, 2024 [5].

Financial Data and Key Metrics - Net revenue for Q2 2024 was $92 million, a 13% decrease year-over-year, driven by a 14% decrease in total orders and higher return rates [6][29] - Adjusted EBITDA for Q2 2024 was a loss of $0.2 million, compared to a gain of $4.2 million in Q2 2023, reflecting elevated fixed costs and reduced revenue [6][33] - Gross margin improved by 80 basis points year-over-year to 45.5%, driven by lower markdown sales and a shift toward higher-margin product categories [9][30] - Inventory levels declined by 19% year-over-year, exceeding the 13% net revenue decline, indicating improved inventory management [9][36] - Net loss for Q2 2024 was $10.8 million, worsening by $8.2 million compared to Q2 2023, impacted by a $5.4 million noncash tax provision and a $423,000 legal accrual [32] Business Line Performance - Special occasion and bridesmaids net sales grew over 30% year-over-year, surpassing pre-pandemic levels and setting a record for these categories [8] - Casual business experienced significant declines, contributing to the majority of the year-over-year net sales decrease [13] - Third-party brand and influencer collaborations, including partnerships with Levi's and Vans, drove increased media interest and social traffic [10][25] - Wholesale business showed steady progress, with new developments based on best-selling items and streamlined fulfillment processes [12] Market Performance - International sales achieved high double-digit growth in units sold in the top 15 countries outside the US, including Canada, the UK, and Mexico [18] - Average unit retail (AUR) increased year-over-year, driving higher average order value (AOV) and total order value per customer [17] Strategic Direction and Industry Competition - The company is focusing on long-term growth initiatives, including data-driven merchandising, brand awareness, and customer engagement [7] - Investments in proprietary technology and analytics platforms aim to improve customer insights and operational efficiency [7][20] - The company is implementing cost reduction measures, including a 10% to 15% reduction in operating expenses for the second half of 2024 [14][37] - Capital expenditures for the year are expected to decrease by $1.5 million to $2.5 million, with a revised projection of $3.5 million for the fiscal year [14][38] Management Commentary on Operating Environment and Future Outlook - Management views current challenges as temporary and remains committed to long-term growth despite macroeconomic pressures [6][7] - The company withdrew its full-year net revenue and adjusted EBITDA outlook due to slower-than-expected recovery and macroeconomic uncertainty [15][36] - Early Q3 sales trends show sequential improvement, suggesting positive momentum in strategic initiatives [10][36] Other Important Information - The company extended its revolving credit agreement with Bank of America, reducing the facility from $50 million to $15 million, with a future reduction to $10 million by March 31, 2025 [34] - Free cash flow for Q2 2024 was $3 million, a $900,000 decrease year-over-year, with $3.7 million generated from operating activities [35] - The company repurchased approximately $87,000 worth of common stock under its $2.5 million stock repurchase program [35] Q&A Session Summary Question: Consumer health and competitive landscape - The company noted ongoing macroeconomic pressures impacting consumer demand, with a slower-than-expected recovery [41] - Management is focusing on driving engagement and profitability while managing cash flow prudently [41][43] Question: Adjusted EBITDA framework - The company is working through cost reductions, with some measures having immediate benefits and others longer-term impacts [42] - Management is cautious about aligning cost reductions with the slower sales recovery to maintain business momentum [42][43] Question: Plans to drive engagement and marketing expenses - The company plans to optimize marketing spend, markdowns, and discounts based on consumer behavior and macro conditions [45][46] - Investments in brand equity will continue, but with a focus on near-term payoffs [45][46] Question: Cost reduction levers and profitability - The company has implemented headcount reductions and executive pay cuts, with limited additional headcount reductions possible due to an already lean team [47][48] - Further cost reductions may focus on G&A spend, but specifics are not yet finalized [48] Question: Category trends and casual business challenges - The casual business faced significant pressure, while special occasion and bridesmaids categories performed strongly [51] - The company is investing in the recovery of the casual business, but the reorder funnel is taking longer to rebuild due to competitive and consumer pressures [51]

Lulus Reports Second Quarter 2024 Results Exhibit 99.1 Sequential Improvement of 180bps in Quarterly Net Revenue Comps from Q1 2024 to Q2 2024 Gross Margin Rate of 45.5%, up 80bps from Second Quarter 2023 Provides Third Quarter 2024 Financial Outlook CHICO, Calif., August 14, 2024 -- Lulu's Fashion Lounge Holdings, Inc. ("Lulus" or the "Company") (Nasdaq: LVLU) today reported financial results for the second quarter ended June 30, 2024. Crystal Landsem, CEO of Lulus, said: "Our second quarter results were i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-41059 Lulu's Fashion Lounge Holdings, Inc. (Exact Name of Registrant a ...

"Lulus is dedicated to empowering women to look and feel their best, and our partnership with female-led D'Amelio Footwear not only introduces highly sought-after products for our customers but also solidifies our position as a one-stop shopping destination globally," said Laura Deady, Chief Merchandising Officer, Lulus. "Following the success of our collaborations with Boys Lie, Levi's®, and Vans, we are thrilled to bring D'Amelio Footwear to our customers as we continue to enhance brand value and expand o ...

Core Insights - Lulus has entered a strategic partnership with D'Amelio Footwear to enhance its market presence and appeal to the Gen Z demographic [6][7] - The collaboration will feature a limited-edition capsule collection under the "Lulus Loves" campaign, launching on July 29, 2024 [13][14] - The partnership aims to leverage the D'Amelio sisters' significant social media influence to drive brand engagement and customer interaction [3][8] Company Overview - Lulus is positioned as an attainable luxury fashion brand for women, offering modern and feminine designs at accessible prices [10] - The company has a history of successful collaborations with brands like Boys Lie, Levi's®, and Vans, which have helped expand its market reach [1][9] - Lulus aims to create a personalized shopping experience through its world-class customer service and stylists [10] Product Launch Details - The D'Amelio Footwear collection will include a variety of styles such as boots, platform slides, sneakers, and pumps, designed for various occasions [14] - A preview event will be held on July 27, 2024, allowing fans to meet the D'Amelio sisters and shop the collection before its official release [2][8] - The marketing campaign for the launch will include social media activations, in-person events, and prominent advertising placements, including a billboard in Times Square [3][8] Target Audience and Marketing Strategy - The partnership is designed to amplify Lulus' influence within the Gen Z demographic, utilizing the D'Amelio sisters' extensive social media following of over 400 million [18] - The marketing strategy will focus on integrated approaches across various platforms to cultivate brand loyalty among younger consumers [3][6] - Lulus aims to position itself as a go-to shopping destination by offering compelling brands that resonate with its core customers [9]

On the heels of partnerships with Levi's® and Boys Lie, Lulus continues momentum by introducing new curated collections of coveted brands to customers in latest Lulus Loves capsule The addition of Vans to its repertoire expands Lulus' footwear offerings, providing shoppers with an even wider selection of iconic and fashion-forward options. For everything from al fresco lunches to summer soirees to outdoor concerts or in-office days, the Lulus Loves: Vans capsule will make Vans' signature styles, including i ...

On the heels of partnerships with Levi's® and Boys Lie, Lulus continues momentum by introducing new curated collections of coveted brands to customers in latest Lulus Loves capsule "At Lulus, we are always looking for inventive ways to energize our customers and our Lulus Loves: Vans capsule is nothing short of that," said Laura Deady, Chief Merchandising Officer, Lulus. "With this exciting new partnership, we're showing our customers how easy it is to incorporate Vans essential styles into any of their sum ...

Lulu's Fashion Lounge Holdings, Inc. (LVLU) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -114.29%. A quarter ago, it was expected that this company would post a loss of $0.10 per share when it actually produced a loss of $0.18, delivering a surprise of -80%.Over the last four quarters, the ...