Lulus Reports Continued Revenue Decline with Improving Outlook

CHICO, Calif., Nov. 12, 2026 /CourierPR/ -- Lulus Fashion Lounge Holdings, Inc., the women’s clothing brand known for offering modern, feminine styles at accessible prices, has reported its third quarter financial results for the period ending September 27, 2026. The company has revised its financial outlook for the fiscal year ending January 3, 2027, and provided its financial outlook for the fiscal year ending January 2, 2028.

In the third quarter, Lulus saw a net revenue of $58.6 million, marking a 20% decrease from the same period last year. This decline was driven by a 20% decrease in Total Orders Placed, primarily due to higher return rates, driven by a shift in sales mix, and a 20% decrease in wholesale revenue. Despite these challenges, the company maintained a flat Average Order Value at $141, indicating that customers were still placing orders but with a reduced frequency.

Active customers decreased by 14% to 2.0 million, a decline from the 2.4 million in the same period last year. This reduction in customer base is attributed to the impact of historical assortment decisions, which have affected customer engagement and repeat purchasing behavior. Despite these challenges, the company remains optimistic about the future, attributing the improved productivity and reorder eligibility of 2026 product introductions to the right path for rebuilding customer engagement.

Wholesale business continued to demonstrate the appeal of Lulus’s product assortment, appealing to a broader customer base and serving as an important avenue for future growth. The company’s disciplined approach to inventory management, merchandising, cost control, and operational efficiency contributed to a 230-basis-point improvement in Gross Margin, year-to-date improvement in net cash provided by operating activities, positive year-to-date Free Cash Flow, and a 17% year-over-year reduction in inventory during the quarter.

Lulus’s CEO, Crystal Landsem, emphasized the importance of maintaining disciplined cost and inventory management, improving working capital efficiency, and carefully allocating resources to support the long-term health of the business. Despite the challenges, the company remains focused on preserving financial flexibility, improving inventory productivity, and making disciplined investments in the product and customer experiences that differentiate Lulus.

The company’s financial outlook for the fiscal year ending January 3, 2027, shows a continued year-over-year revenue decline, but with a moderate improvement expected in the fourth quarter. The outlook for the fiscal year ending January 2, 2028, anticipates a meaningful improvement in profitability driven by the significant full-year benefit of cost reduction initiatives implemented in late 2026 and improved inventory productivity.

Lulus’s financial performance highlights the challenges faced by the retail industry, particularly in the women’s fashion sector, but also underscores the company’s commitment to improving operational efficiency and maintaining a disciplined approach to inventory and cost management. The company’s revised financial outlook and forward-looking statements reflect the company’s confidence in its ability to navigate current market conditions and position itself for sustainable, profitable growth in the future.