Lulu's Fashion Lounge Q3 revenue falls, net loss widens on lower orders, higher return rates
LVLU•Lulu's Fashion Lounge reported Q3 revenue of $58.6 million, down 20% year over year, and a net loss of $4.27 million. It lowered its 2026 revenue and adjusted EBITDA outlook and expects its 2027 revenue decline to moderate.
1. Quarterly results
Q3 revenue fell 20% year over year to $58.6 million, driven by a 20% decrease in total orders placed and higher return rates, primarily from sales mix. The company posted a net loss of $4.27 million and negative adjusted EBITDA of $1.8 million. Gross margin rose 230 basis points to 44.9%, while inventory declined 17% year over year.
2. Outlook and drivers
Lulu's lowered its 2026 revenue and adjusted EBITDA outlook below prior expectations and expects capital expenditures of $1.5 million to $2.0 million in 2026. It expects the 2027 revenue decline to moderate as new products and wholesale growth offset headwinds. The company said historical assortment decisions continued to weigh on customer engagement, repeat purchases and revenue.
