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Lulu's Fashion Lounge Holdings Inc. (LVLU+2.11%) has submitted its 10-K filing for the fiscal year ended December 29, 2024.
The filing reports a decrease in net revenue to $315.9 million from $355.2 million in the previous year, attributed to a decline in total orders placed and higher return rates, partially offset by an increase in average order value.
Cost of revenue decreased to $185.6 million from $206.9 million, resulting in a gross profit of $130.2 million, down from $148.2 million the previous year.
Selling and marketing expenses decreased to $72.9 million from $76.3 million, reflecting lower marketing spend and merchant processing fees.
General and administrative expenses decreased to $81.3 million from $92.1 million, primarily due to reductions in equity-based compensation and payroll costs.
A goodwill impairment charge of $28.4 million was recorded, resulting in a net loss of $55.3 million compared to a net loss of $19.3 million in the previous year.
The company reported an increase in income tax provision to $2.3 million from a benefit of $1.7 million in the previous year, primarily due to the establishment of a valuation allowance against deferred tax assets.
Cash provided by operating activities was $2.6 million, while cash used in investing activities was $2.9 million, and cash provided by financing activities was $2.2 million.
Lulu's had cash and cash equivalents of $4.5 million as of December 29, 2024, with $13.1 million in outstanding amounts under the amended 2021 Credit Agreement.
The company is seeking alternative debt financing and has implemented cost reduction measures to address liquidity concerns.
Lulu's Fashion Lounge Holdings Inc. does not anticipate paying cash dividends in the foreseeable future, as it intends to retain earnings to support business growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lulu's Fashion Lounge Holdings Inc. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.