Lulu’s Fashion Lounge files for IPO

Lulu’s Fashion Lounge Holdings Inc. has filed for an initial public offering, the latest retailer looking to tap the stock markets to fuel its growth.

Lulu’s, based in Chico, Calif., About three hours northeast of San Francisco, is looking to sell $ 100 million in stock, though that figure is often a placeholder used to calculate filing fees.

The fast fashion online retailer caters to young women and teenage girls. The shares would trade on the Nasdaq under the symbol LVLU. The underwriters include Goldman Sachs and B. of A. Securities.

Lulu’s said it has been profitable this year and that one of its strengths is the ability to use “data to optimize almost every part of our business,” including product creation.

“Unlike traditional retailers, we are leveraging a ‘test, learn and replenish’ strategy to bring hundreds of new products to market every week,” Lulu said in her flyer. The company tests new offerings in small batches, learns about customer demand, and then quickly revamps “higher volume winning products to optimize profitability,” he said.

“This strategy allows us to quickly convert new products into profitable sales on a consistent and repeatable basis while minimizing fashion and trend risks,” said Lulu’s. Traditional brick and mortar retailers are “under pressure” due to their longer product cycles and their inability to keep up with changing consumer tastes, he said.

Lulu’s listed income of $ 54.5 million for the three months ended on September 27, 2020, and income estimated between $ 104.5 million and $ 106.2 million for the three months ended. the 3rd of October.

It posted a profit of $ 377,000 for the period last year and an estimated profit of between $ 3.3 and 3.9 million for the period of the current year. This expected increase would come from a “higher gross margin,” partially offset by higher sales and marketing expenses and other costs, Lulu’s said.

For the six months ended July, Lulu reported net income of 24 cents per share on sales of $ 173 million. This contrasts with a net loss of 92 cents per share on sales of $ 140 million during the same period in 2020.

The IPO market has already raised more money this year than in 2000, during the dot-com boom. Recent IPOs in the retail industry include shoe company Allbirds Inc. and clothing rental company Rent the Runway.

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