Lulu's revenue drop in 2024, driven by lower orders and higher returns

California based fashion brand Lulu’s saw net revenue for the year ending December 29, 2024, of 315.9 million dollars, decrease by 11 percent compared to 2023.

The decrease was driven by a 12 percent drop in total orders placed and higher return rates offset by a 3 percent increase in average order value from 133 dollars to 137 dollars.

Crystal Landsem, CEO of Lulus, said: “In the fourth quarter, we delivered positive sales growth in our special occasion, bridesmaid, and bridal categories, reinforcing our strength in event dressing despite the seasonally slower sales period.”

“These gains in our occasion dress categories were offset by continued softness in casual wear, which we are actively repositioning to better align with our core focus on event attire.”

Gross profit decreased 12 percent to 130.2 million dollars and gross margin decreased 50 basis points. Net loss reached 29 million dollars and adjusted EBITDA was negative 9.7 million dollars.

“The implementation of our cost reduction plans allowed us to deliver the narrowest quarterly net loss, excluding goodwill impairment, of the past six quarters. With major cost reduction initiatives in place, we remain committed to ongoing and disciplined cost management,” said Tiffany Smith, CFO of Lulus.

For fiscal year 2025, Lulus expects net revenue to be between 280 million dollars and 310 million dollars, representing a decrease of between 11 percent and 2 percent and adjusted EBITDA of 6 million dollars represents an increase of between 9.7 million dollars and 15.7 million dollars compared to 2024.