LVLU - Lulu's Fashion Lounge defies down day in retail with post-earnings rally

Lulu's Fashion Lounge Holdings (NASDAQ:LVLU +7.0%) rallies after its earnings topper on a day a bulk of the retail sector is being stung by Target's drop in guidance. For its part, LVLU saw its margin rates, net income and adjusted EBITDA all increase in Q1 off the 62% sales growth. On Wall Street, Bank of America reiterated a Buy rating on Lulu's as it pointed to the retailer's "resilient profitability, robust and growing customer file, and compelling key performance metrics." While BofA expects elevated freight and fulfillment costs to persist, product margin expansion and improved efficiencies from implementation of robotics are expected to provide some offset. The firm also noted that LVLU's annualized inventory turns remained above 8X and full price selling on lower markdowns were positive signs. Across the sector, the increase in mix of the more profitable occasion dressing also works in LVLU's favor. Dig into the Lulu's

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Lulu's Fashion Lounge defies down day in retail with post-earnings rally