Lulu’s Fashion Lounge Holdings Inc. shares jumped 40.90% to $6.89 in pre-market trading on Thursday following third-quarter results.

Check out the current price of LVLU stock here.

According to Benzinga Pro data, the stock closed Wednesday's regular session at $4.89, up 4.94%.

Q3 Financial Performance

The California-based women’s fashion retailer reported a year-over-year revenue decline for the quarter ended Sep. 28, while its net loss declined.

Gross margin of Lulu’s Fashion Lounge expanded 450 basis points to 42.6%.

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Profitability Milestone

The company reported positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $0.4 million, compared to negative $3.6 million last year, marking what CEO Crystal Landsem called the company’s “second consecutive quarter of positive Adjusted EBITDA.”

Landsem also stated the results demonstrate “meaningful progress we’re making in strengthening and optimizing core areas of the business.”

Management expects significant year-over-year improvement in adjusted EBITDA for the fourth quarter and reaffirmed $2.5 million in capital expenditures. The company secured a new credit agreement and strengthened its balance sheet, with net debt declining to $7.25 million from $8.63 million at the end of 2024.

Stock Performance

With a market capitalization of $13.44 million, the stock has dropped 71.4% so far this year and is currently trading between $2.98 and $25.50 for 52 weeks.

Benzinga’s Edge Stock Rankings indicate that LVLU is experiencing long-term consolidation along with medium and short-term upward movement. Know how its momentum lines up with other well-known names.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.