CHICO, CA—Tiffany Rose Smith, the Chief Financial Officer of Lulu's Fashion Lounge Holdings, Inc. (NASDAQ:LVLU), a fashion retailer with a market capitalization of approximately $51 million, recently sold shares of the company's common stock. The sale comes as the stock has declined over 53% in the past year, according to InvestingPro data. According to a filing with the Securities and Exchange Commission, Smith executed the sale of 953 shares in two separate transactions on November 26 and November 27.
The shares were sold at prices ranging from $1.23 to $1.24, totaling $1,178. Following these transactions, Smith holds 341,419 shares of Lulu's Fashion Lounge. The sales were conducted under a 10b5-1 trading plan, which Smith adopted on August 19, 2024.
In other recent news, Lulu reported mixed results for the third quarter of 2024. The company saw a 6% year-over-year increase in dress sales, largely due to a surge in special occasion and bridesmaid dress sales. However, Lulu also experienced a 3% decline in net revenue, totaling $81 million, and an adjusted EBITDA loss of $3.6 million. Despite these challenges, the company has successfully reduced its inventory by 7% compared to last year and is implementing strategic initiatives to improve its financial position.
The company's focus on event wear and alternative debt financing options are among the recent developments. Lulu's partnership with Dillard's (NYSE:DDS) resulted in a 28% increase in wholesale revenue, and international sales saw significant growth, particularly in the top 15 countries outside the U.S. The company also plans to achieve profitability by Q4 2025 through disciplined inventory and expense control.
However, Lulu's separates and shoe segments faced challenges, leading to a reassessment of product offerings. The company's gross margins decreased to 38.1%, mainly due to markdowns in casual wear. Nonetheless, strategic efforts have led to improved product assortment and reduced return rates, and the company reported $6.3 million in free cash flow for Q3.
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