Lulus Sees Encouraging Momentum in Second Quarter 2026 Despite Revenue Trends Below Historical Levels
Lulus, a leading online retailer, reported encouraging momentum across several key areas of its business during the second quarter of 2026, despite revenue trends that were below historical levels.
In a conference call with investors and analysts on August 12, 2026, Lulus' CEO, Crystal Landsem, emphasized the company's continued focus on strengthening the fundamentals of the business through disciplined merchandising, inventory management, and operational efficiency.
"While revenue trends were below our historical levels in the second quarter, we continued to prioritize the long-term health of the business over short-term volume," Landsem said. "We delivered another quarter of meaningful gross margin expansion, continued improvement in net loss, positive adjusted EBITDA performance, and stronger inventory productivity, reflecting continued execution against our turnaround strategy."
Lulus reported double-digit year-over-year top-line growth in its new occasion wear assortment, which includes bridal, bridesmaids, formal, and day event categories. The quarter also reflected a significant reduction in markdown sales, with total markdown sales transacted down 38% compared to Q2 2025.
"The shift towards healthier regular priced sales is an important part of improving the quality and profitability of the business," Landsem noted.
The company's President and CIO, Mark Vos, added that Lulus' new assortment and reorder funnel are showing encouraging momentum. "We're very encouraged by the response to the newer assortment across both our core occasion wear and casual apparel businesses," he said.
Lulus' CFO, Heidi Crane, highlighted the company's financial performance during the quarter. "We delivered another quarter of positive adjusted EBITDA performance, reflecting continued execution against our turnaround strategy," she said.
The company's General Counsel and Corporate Secretary, Naomi Beckman-Straus, provided a brief overview of the conference call, which included forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. She also noted that Lulus' non-GAAP financial information may be different from non-GAAP measures used by other companies.
Lulus' management team expressed confidence in the company's turnaround strategy and emphasized their commitment to prioritizing the long-term health of the business over short-term volume.
