LVLU Stock Forecast & Price Target

Lulus Fashion Lounge Holdings Inc. experienced a significant 76% year-over-year increase in wholesale revenue during the fourth quarter, driven by effective collaborations with key retailers. The company's ambassador program also demonstrated robust growth, expanding by over 50%, which contributed to a 33% increase in social engagement quarter over quarter. Furthermore, the adjusted EBITDA forecast for FY25 shows a positive shift to $3.0 million, contrasting with the prior estimate of a loss, reflecting improved financial performance and optimism for future profitability.

Lulus Fashion Lounge Holdings Inc. has experienced a significant 7.4% year-over-year decline in active customers, dropping from 2.83 million to 2.62 million, which raises concerns about consumer engagement and growth potential. The company's profitability is under pressure, as indicated by a margin decline of 240 basis points to -5.0%, which is notably worse than consensus expectations. Additionally, the inventory levels have further decreased by 7.3% in the previous quarter, suggesting potential challenges in managing stock effectively amidst declining customer numbers.