LVLU Stock Forecast & Price Target

Lulus Fashion Lounge Holdings Inc. experienced a significant uplift in wholesale revenue, reporting a 76% year-over-year increase in the fourth quarter, driven by collaborations with key retailers. The company's ambassador program also saw substantial growth, expanding by over 50%, which resulted in a 33% rise in social engagement quarter over quarter. Furthermore, the adjusted EBITDA forecast for FY25 has been revised positively to $3.0 million, a notable improvement from a prior estimate of a negative $0.3 million.

Lulus Fashion Lounge Holdings Inc. experienced a significant decline in active customers, with a year-over-year drop of 7.4% to 2.62 million, down from 2.83 million in the previous year. The company's financial performance reflected a margin decline of 240 basis points to negative 5.0%, which was better than consensus expectations but still indicated a challenging operational environment. Additionally, the company's inventory levels decreased by 7.3% year-over-year, suggesting potential difficulties in demand or sales velocity that could hamper future growth prospects.