Business & Investment

Lulu IPO Fashion Lounge File

Lulu’s Fashion Lounge Holdings Inc. has filed an initial public offering. This is the latest retailer trying to open up the stock market to drive its growth.

Chico, Calif.-based Lulu’s is about to sell $ 100 million worth of shares about three hours northeast of San Francisco, a placeholder that is often used to calculate filing fees. is.

Online fast fashion retailers are aimed at young women and teens. Stocks are traded on NASDAQ under the LVLU symbol. Underwriters include Goldman Sachs and Bank of A. Securities.

Lulu’s said it is making a profit this year, and one of its strengths is its ability to “use data to optimize almost every element of its business,” including product creation.

“Unlike traditional retailers, we leverage a’test, learn, reorder’strategy to bring hundreds of new products to market each week,” Lulu said. Prospectus. The company tests new products in small batches, learns about customer demand, and quickly reorders “get more products in bulk to optimize profitability.”

“This strategy allows us to quickly transform new products into profitable sales on a consistent and repeatable basis, while minimizing the risk of fashion and trends,” Lulu said. increase. Traditional retailers are “under pressure” because of the long product cycle and the inability to keep changing consumer tastes.

Lulu’s listing revenue for the three months ending September 27, 2020 was $ 54.5 million, and estimated revenue for the three months ending October 3, 2020 was $ 104.5 million to $ 106.2 million. ..

Earnings for the year-ago quarter were $ 377,000 and estimated earnings for the year ranged from $ 3.3 million to $ 3.9 million. The expected increase is due to an “increased gross profit,” but is partially offset by increased sales and marketing costs and other costs, Lulu said.

For the six months ending in July, Lulu’s net listing income was $ 173 million, 24 cents per share. This was in contrast to the $ 140 million sales of $ 140 million in the same period in 2020, which was a net loss of 92 cents per share.

The IPO market has already raised more money this year than it was in 2000. During the dot-com boom.Recent IPOs in the retail industry include shoe companies Allbirds Inc. And fashion rental companies Rent a runway.

Lulu IPO Fashion Lounge File Lulu IPO Fashion Lounge File

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