Earnings Releases·Nov 12, 2026, 4:21 PM ET

Lulus — Third Quarter 2026 Earnings Summary

Net revenue declined 20% year-over-year to $58.6 million due to a 20% drop in Total Orders Placed and higher return rates, while gross margin expanded 230 basis points to 44.9%.
The company reported a net loss of $4.3 million and a stockholders' equity deficit of $5.0 million, with total debt increasing by $5.3 million during the quarter.
Fiscal 2026 guidance was revised downward for both revenue and Adjusted EBITDA, citing revenue pressure from historical assortment decisions, with no meaningful improvement expected in Q4 2026.
Future outlook projects a moderation in revenue decline rates for fiscal 2027 driven by new product introductions and expects profitability improvements from cost reduction initiatives and a healthier sales mix.
Strategic priorities include a disciplined inventory reset (down 17% to $31.9 million), a refocused product assortment to rebuild engagement, and continued growth in the wholesale channel.