Shares of Lulu's Fashion Lounge Holdings ( NASDAQ: LVLU ) fell sharply in postmarket trading following the retailer's Q3 earnings report .
Lulu's reported flat revenue growth in Q3 revenue that missed the consensus expectation of analysts. EPS of $0.02 was also below the consensus mark of $0.09.
The retailer said it saw lower net revenue growth due to macroeconomic factors, including inflation pressure that impacted customer spending and product returns behavior.
"Due to the macroenvironment, we increased our promotional cadence, which resonated with our customers but resulted in product margin compression. Our balance sheet remains strong, enabling us to continue to focus on delivering on our brand promise, delighting our customers, and growth strategies. However, in the near-term we believe it’s prudent to reduce our 2022 guidance range for the year given the macro uncertainties."
In C-suite news, Lulu's announced that current Co-President and Chief Financial Officer Crystal Landsem has been appointed Chief Executive Officer, effective March 6. David McCreight, currently CEO, will become Executive Chairman of the Board, also effective March 6.
LVLU reeled in guidance expectations and now sees revenue of $425.0M to $440M vs. a prior outlook for $440M to $480M. Adjusted EBITDA of $25.0M to $31.0M is anticipated vs. $35.0M to $45M prior range.
Shares of LVLU shed 12.72% in postmarket trading to erase the 10.54% gain during the regular session before the earnings report dropped.
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Lulu's Fashion Lounge gives back big gain after earnings disappoint