LVLU - Why Lulu's Fashion Lounge Stock Was Falling Earlier Today
Shares of Lulu's Fashion Lounge Holdings (NASDAQ: LVLU) were trading down 17.5% as of 11:28 a.m. ET on Wednesday. The company reported revenue growth of 27% over the year-ago quarter, but lower margins put pressure on profitability, sending the stock down.
Year to date, the stock has fallen 37%, underperforming the broader market.
Overall, Lulu's business is performing relatively well, given the macroeconomic headwinds. Management credited higher shipping costs and a higher level of returns for sending gross profit margin down nearly 4 percentage points to 45.8% during the quarter. Lower margins sent earnings per share down to $0.15 from $0.28 in the year-ago quarter.
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Why Lulu's Fashion Lounge Stock Was Falling Earlier Today