Lulu's Fashion Lounge Holdings Inc. Common Stock (LVLU)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a student of Buffett and Graham, I begin with the business, not the stock chart. Lulu's Fashion Lounge sells women's apparel and accessories online. It sells under the Lulus brand but has no demonstrated moat: apparel retail is intensely competitive, and filed figures show revenue falling from $355.2 million in FY2023 to $315.9 million in FY2024 and $282.3 million in FY2025. In fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $67.8 million versus $81.5 million in fiscal Q2 2025, the quarter ended 2025-06-29. The company is still losing money: net loss was $1.5 million in fiscal Q2 2026, after a $4.1 million loss in fiscal Q1 2026, the quarter ended 2026-03-29, and a $2.3 million loss in fiscal Q3 2025, the quarter ended 2025-09-28. Full-year FY2025 net loss was $13.7 million, an improvement from FY2024's $55.3 million loss, but still red ink. Financial health is poor. FairStock calculations show an Altman Z-Score of -3.83, a Piotroski F-Score of 6/9, ROE of -602.91%, ROCE of -4.45%, and debt-to-equity of 10.35. Capital is not earning a return. At the 2026-10-13 close of $13.37, the market cap is only $38.4 million, yet FairStock P/B is 8.95 and P/E is -4.59, so there is no earnings-based margin of safety. Trailing free cash flow is about negative $24,000, with a FairStock FCF yield of -0.1%. The Lynch category is TURNAROUND, reflecting a loss in the latest year after earlier profits. A true turnaround needs stabilizing revenue and positive cash earnings. Until then, this is a speculative situation, not a Graham bargain.

In plain English: Lulu's sells women's clothing and accessories mostly online. The business looks weak right now: sales have been shrinking and it has been losing money, though losses have gotten smaller in recent reports. At the recent price of $13.37, the stock does not look cheap compared with its current sales, profits, or accounting value; it looks like a speculative turnaround, not a stable bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer