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Lulu's Fashion Lounge Holdings logo

Lulu's Fashion Lounge Holdings

LVLU
18
Apparel - Retail · Consumer Cyclical
Price
$12.56
+2.36 (+23.16%)
Market Cap
$36.0M
Exchange
NASDAQ Capital Market
Winston Score
18
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+385.8% over 3y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 576.3M (2022) → 2.80B (2025)

Lulu's Fashion Lounge is an online clothing store that sells affordable women's fashion, including dresses, tops, shoes, and accessories. It targets young women, especially for special occasions like weddings, proms, and parties. The company operates almost entirely through its website, lulus.com, and is known for trendy styles at mid-range prices.

Lulu's makes money by selling clothing and accessories directly to shoppers online, keeping no physical retail stores. It operates primarily in the United States and is a small company with a market cap near zero, meaning it has struggled financially in recent years. The business faces intense competition from fast-fashion giants like Shein and ASOS, as well as department stores and other online retailers, which puts constant pressure on pricing and customer acquisition costs. Returning to profitability is the key challenge, as the company currently spends more than it earns from operations.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

67.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$7M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Lulu's Fashion Lounge Holdings's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
45.1%
Healthy — 45.1% gross margin
Operating Margin
-6.2%
Losing money on operations — -6.2%
ROCE
-17.9%
Weak — -17.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-9.0%
Shrinking sales (-9.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-0.4%
Burning cash (-0.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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