Lulu’s Fashion Lounge Sees 2026 Outlook Fall, Expects $5M in Savings

Lulu’s Fashion Lounge Holdings, Inc. expects its 2026 revenue and adjusted EBITDA to miss prior expectations, while workforce reductions are projected to produce $5 million in annualized savings as it negotiates with lenders.

Management expects fourth-quarter revenue pressure to be similar to the third quarter. The company expects the rate of revenue decline to moderate in fiscal 2027, with wholesale growth providing support.

In the third quarter, gross margin rose 230 basis points to 44.9%. Markdown sales fell 28%, and inventory declined 17% year over year. The quarter ended with a $4.3 million net loss; adjusted EBITDA was negative $1.8 million.

Lulu’s is discussing liquidity support with current and prospective lenders. No agreement has been finalized. Its board is also evaluating strategic alternatives. Workforce reductions are expected to generate about $5 million in savings at an annualized rate.