LVLU Stock Forecast & Price Target

Lulus Fashion Lounge Holdings Inc. demonstrated strong growth in its wholesale revenue, which surged 76% year-over-year in the fourth quarter, indicative of successful collaborations with key retailers. Furthermore, the company's ambassador program saw substantial expansion, with a 50% increase leading to a 33% rise in social engagement, enhancing brand visibility among its target demographics. This positive engagement, combined with a significant improvement in the adjusted EBITDA forecast, projected to reach $3.0 million for FY25, supports a favorable outlook for the company's financial performance.

Lulus Fashion Lounge Holdings Inc. has experienced a significant decline in active customers, with the count dropping 7.4% year-over-year to 2.62 million, down from 2.83 million in the same quarter last year. The company reported a margin decline of 240 basis points, reaching -5.0%, which exceeds consensus expectations and indicates worsening profitability compared to the previous quarter's performance. Additionally, a continued decline in inventory levels, down 7.3% year-over-year, raises concerns about the company’s ability to maintain product availability and meet consumer demand.