Lulu’s Fashion Lounge risks Nasdaq delisting

Published 28/05/2025, 21:20
Lulu’s Fashion Lounge risks Nasdaq delisting

Lulu’s Fashion Lounge Holdings, Inc., a retail-catalog and mail-order house with annual revenue of $302.78 million, has been notified by The Nasdaq Stock Market LLC of its non-compliance with the Nasdaq Global Market’s continued listing requirements due to insufficient stockholders’ equity. The company reported approximately $6.6 million in stockholders’ equity in its latest quarterly report, falling short of the minimum $10 million required. According to InvestingPro data, the company’s current ratio of 0.68 indicates that short-term obligations exceed liquid assets.

The notification, received on May 21, 2025, requires Lulu’s to submit a compliance plan by July 7, 2025. The company has the option to move its listing to the Nasdaq Capital Market, which has a lower minimum stockholders’ equity requirement of $2.5 million. On May 27, 2025, Lulu’s submitted an application to transfer its listing to the Nasdaq Capital Market, pending Nasdaq’s review. The stock, currently trading at $0.43, has experienced significant pressure, with InvestingPro reporting a 77% decline over the past year.

This development follows the company’s disclosure in its Form 10-Q for the quarter ended March 30, 2025. The forward-looking statements in the SEC filing caution that the company’s ability to regain compliance and maintain its Nasdaq listing could differ materially from current expectations due to various risks and uncertainties.

Lulu’s Fashion Lounge Holdings, Inc., incorporated in Delaware, is based at 195 Humboldt Avenue, Chico, California, and trades under the ticker symbol (NASDAQ:LVLU). The information in this article is based on the company’s recent SEC filing.

In other recent news, Lulu’s Fashion Lounge Holdings Inc. reported a challenging first quarter of 2025, with net revenue of $64.2 million, marking a 17% decrease compared to the previous year. The company faced a net loss of $8 million, which was larger than the $5.7 million loss from the same period last year. Despite the financial setbacks, Lulu’s managed to generate positive cash flow from operations amounting to $8.3 million and reduced its net debt to $1.5 million from $8.6 million at the end of 2024. The company withdrew its full-year revenue and adjusted EBITDA guidance due to ongoing uncertainties. However, Lulu’s expects to achieve positive adjusted EBITDA in the second quarter of 2025. The company is focusing on doubling the percentage of direct sourcing by the end of the year and continuing cost reduction initiatives. CEO Crystal Lansing expressed confidence in the strategic direction, emphasizing the potential benefits of increasing direct sourcing and rationalizing the cost structure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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