Chico, Calif. – Lulu’s Fashion Lounge Holdings has announced the withdrawal of its full-year guidance following disappointing preliminary second-quarter results. The women’s fashion brand cited lower-than-expected demand and higher return rates for clothing purchases as the reasons behind its underwhelming performance.
Lulu’s Fashion Lounge stated that it anticipates a year-on-year decline in revenue of around 20%, with revenue expected to be between $104.5 million and $106 million. This falls short of the $116.5 million revenue predicted by analysts polled by FactSet.
Moreover, the company expects a pretax loss of $1.8 million to $2.6 million for the quarter, contrasting with the $10.8 million pretax profit reported in the same period last year.
In light of these challenges, Lulu’s Fashion Lounge acknowledges the “continued choppiness in consumer demand, macroeconomic uncertainties, and elevated return rates.” As a result, the brand plans to closely monitor business trends until early August before providing new guidance for 2023.
As a consequence of these disappointing developments, shares of Lulu’s Fashion Lounge fell 18% to $2.25 in pre-market trading.
