Lulus hopes to raise $101 million with IPO
Lulu’s Fashion Lounge Holdings, Inc. (Lulus), the Chico, California-based womenswear company popular with millennial and Gen-Z consumers, announced on Monday that it is launching its initial public offering with 5.75 million shares of its common stock.
The brand which is expected to trade on the Nasdaq under the ticker symbol “LVLU,” has set its share price at between $16.00 and $19.00. At the midpoint of this range, the IPO would raise approximately $101 million.
In line with these figures, Lulus would be valued in the range of $595 million to $707 million upon completion of the IPO, which has been underwritten by Goldman Sachs & Co. LLC, BofA Securities and Jefferies.
Founded in 1996 by mother-daughter team Debra Cannon and Colleen Winter, Lulus became a purely online business in 2008. The platform, which employs a strategy with a strong focus on data and customer feedback, has around 2.55 million active users as of October.
When Lulus first filed for an IPO with the Securities and Exchange Commission in October, the company revealed that it saw a net loss of $19.8 million in 2020. Revenues totaled $248.7 million, down 32.7% from $369.6 million in the previous year, a decline which reflected the negative impact of the Covid-19 crisis on the company’s operations.
The brand has since been able to make something of a recovery, posting earnings of $4.2 million on revenues of $172.5 million in the first six months of 2021, up from a loss of $16.0 million on revenues of $139.6 million in the same period in the previous year.
The company is jumping into a red-hot IPO market that has seen the the likes of Rent the Runway, Warby Parker and Olaplex go public over the last few months, with sustainable footwear specialist Allbirds expected to follow suit very soon.
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