Lulus Shares Surge 65.6% Year-Over-Year, Expands into Nordstrom Nationwide
Lulus shares have surged 65.6% over the past year compared with the industry’s 18.3% growth, while Deckers Outdoor and Stitch Fix shares fell 19.3% and 29.3% respectively. This outperformance reflects Lulus’s data-driven merchandising model, improving product margins and expanded wholesale partnerships, including nationwide Nordstrom distribution.
1. Strong Share Performance
Lulus shares gained 65.6% over the trailing 12 months, significantly outperforming the 18.3% industry growth. During the same period, Deckers Outdoor and Stitch Fix stocks declined 19.3% and 29.3% respectively, highlighting Lulus’s market strength.
2. Data-Driven Merchandising & Margins
The company’s “test, learn and reorder” model introduces hundreds of new styles weekly in limited batches, using real-time customer feedback to scale high-demand items and minimize markdowns. Improved product sourcing and a higher proportion of full-price sales have boosted overall merchandise margins.
3. Wholesale Expansion
Beyond its direct-to-consumer platform, Lulus has expanded into wholesale, with a recent roll-out into all Nordstrom stores nationwide following strong in-store performance. These partnerships aim to increase brand exposure and reach new customer segments without diluting its digital focus.
4. Valuation and Risks
Lulus trades at 0.14X trailing 12-month EV/sales versus a 2.05X industry average, indicating potential undervaluation. However, sensitivity to consumer discretionary spending, rising interest expenses and ongoing operating losses present material near-term headwinds.