Lulu's Fashion Lounge Holdings Inc (LVLU) 2024 Q4 法說會逐字稿

Good afternoon and welcome to Lulu's fourth-quarter and fiscal-year 2024 earnings conference call. Today's call is being recorded and we have allocated one hour for the prepared remarks and Q&A.

下午好，歡迎參加 Lulu 2024 財年第四季和財報電話會議。今天的電話會議正在錄音，我們預留了一個小時的時間來準備好的發言和問答。

At this time, I'd like to turn the conference over to Lulu's General Counsel and Corporate Secretary, Naomi Beckman-Straus. Thank you. You may begin.

現在，我想將會議交給 Lulu 的總法律顧問兼公司秘書 Naomi Beckman-Straus。謝謝。你可以開始了。

Good afternoon, everyone, and thank you for joining us to discuss Lulu's fourth-quarter and fiscal-year 2024 results. Before we begin, we would like to remind you that this conference call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

大家下午好，感謝大家加入我們討論 Lulu 2024 財年第四季和全年業績。在我們開始之前，我們想提醒您，本次電話會議將包括 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。

All statements made on this call that do not relate to matters of historical facts should be considered forward-looking statements, including, but not limited to statements regarding management's expectations; plans; strategies; goals and objectives and their implementation; opportunities for growth and a return to profitability in the coming quarters; the long-term growth trajectory of our business; our expectations around the continued impact of the macroeconomic environment, including as a result of the imposition of tariffs, consumer demand, and return rates on our business; our future expectations regarding financial results; our ability to realize the intended impact of cost reduction measures; our ability to pursue alternative debt financing options; references to the fiscal year ending December 28, 2025, including our financial outlook for fiscal year 2025; market opportunities; product launches; and other initiatives.

本次電話會議中所有與歷史事實無關的陳述均應被視為前瞻性陳述，包括但不限於有關管理層期望的陳述；計劃；策略；目標和目的及其實施；未來幾個季度的增長和盈利恢復機會；我們業務的長期增長軌跡；我們對宏觀經濟環境持續影響的預期，包括徵收關稅、消費者需求和對我們業務的回報率的影響； 28 日的財政年度，包括我們對 2025 財政年度的財務展望；市場機會；產品發布；以及其他舉措。

These forward-looking statements are subject to various risks, uncertainties, assumptions, and other important factors, which could cause our actual results, performance, or achievements to differ materially from results, performance, or achievements expressed or implied by these forward-looking statements. These risks, uncertainties, and assumptions are detailed in this afternoon's press release, as well as our filings with the SEC, including our annual report on Form 10-K for the fiscal year ending December 29, 2024, filed with the SEC this afternoon, all of which can be found on our website at investors.lulus.com.

這些前瞻性陳述受各種風險、不確定性、假設和其他重要因素的影響，可能導致我們的實際結果、績效或成就與這些前瞻性陳述所表達或暗示的結果、績效或成就有重大差異。這些風險、不確定性和假設在今天下午的新聞稿以及我們向美國證券交易委員會提交的文件中都有詳細說明，包括我們今天下午向美國證券交易委員會提交的截至 2024 年 12 月 29 日的財政年度的 10-K 表格年度報告，所有這些都可以在我們的網站 investors.lulus.com 上找到。

Any such forward-looking statements represent management's estimates as of the date of this call. While we may elect to update such forward-looking statements at some point in the future, we undertake no obligation to revise or update any forward-looking statements or information except as required by law.

任何此類前瞻性陳述均代表管理階層截至本次電話會議之日的估計。雖然我們可能選擇在未來某個時間點更新此類前瞻性陳述，但除非法律要求，否則我們不承擔修改或更新任何前瞻性聲明或資訊的義務。

During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, net debt, and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for or superior to the financial information prepared and presented in accordance with GAAP.

在今天的電話會議中，我們還將參考某些非 GAAP 財務信息，包括調整後的 EBITDA、調整後的 EBITDA 利潤率、淨債務和自由現金流。我們在一些財務討論中使用非公認會計準則指標，因為我們相信它們更準確地反映我們業務的真實營運績效和基本結果。本非 GAAP 財務資訊的呈現並非設計用於單獨考慮或替代或優於根據 GAAP 編制和呈現的財務資訊。

Our non-GAAP measures may be different from non-GAAP measures used by other companies. Reconciliation of GAAP to non-GAAP measures, as well as the description, limitations, and rationale for using each measure can be found in this afternoon's press release and in our SEC filings. We also use certain key operating metrics, including gross margin, average order value, and total orders placed. The description of these metrics can be found in this afternoon's press release and in our SEC filings.

我們的非公認會計準則衡量標準可能與其他公司使用的非公認會計準則衡量標準不同。在今天下午的新聞稿和我們向美國證券交易委員會提交的文件裡，您可以找到 GAAP 與非 GAAP 指標的對照表，以及使用每種指標的描述、限制和理由。我們也使用某些關鍵營運指標，包括毛利率、平均訂單價值和總訂單量。這些指標的描述可以在今天下午的新聞稿和我們的美國證券交易委員會文件中找到。

Joining me on the call today are our CEO, Crystal Landsem; our CFO, Tiffany Smith; and our President and CIO, Mark Vos. Following our prepared remarks, we'll open the call for your questions.

今天與我一起參加電話會議的還有我們的執行長 Crystal Landsem；我們的財務長蒂芙尼·史密斯（Tiffany Smith）；以及我們的總裁兼首席資訊長 Mark Vos。在我們準備好發言之後，我們將開始回答您的問題。

With that, I'll turn the call over to Crystal.

說完這些，我將把電話轉給 Crystal。

Thank you, Naomi, and good afternoon, everyone. We appreciate you joining us today. In a year defined by challenging consumer backdrop and rapidly evolving macroenvironment, we made meaningful progress identifying underperforming areas of the business and executing strategic realignments to position Lulu's for long-term success.

謝謝你，娜歐米，大家下午好。感謝您今天加入我們。在充滿挑戰的消費者背景和快速變化的宏觀環境的一年裡，我們取得了有意義的進展，確定了業務中表現不佳的領域，並執行了戰略調整，以使 Lulu 獲得長期成功。

In 2024, we sharpened our focus on our core strength, our unique position as a premier destination for occasion dresses, while optimizing our cost structure to align with our current business needs. Simultaneously, we refocused our commitment to three initiatives designed to enhance brand strength, elevate market positioning, and drive sustainable, profitable growth.

2024 年，我們將更加專注於我們的核心優勢，即我們作為禮服首選目的地的獨特地位，同時優化我們的成本結構以滿足我們當前的業務需求。同時，我們重新將重點放在三項旨在增強品牌實力、提升市場定位和推動永續獲利成長的舉措。

As a reminder, these initiatives include continued product assortment optimization to support margin expansion, continued investment and brand initiatives to fortify customer engagement and brand differentiation, and investments in our proprietary stack and analytics programs to drive technology enablement, including improved decisioning, efficiencies, and customer experience.

提醒一下，這些舉措包括持續的產品分類優化以支持利潤率擴大、持續的投資和品牌計劃以加強客戶參與度和品牌差異化，以及對我們的專有堆疊和分析程序的投資以推動技術支持，包括改進決策、效率和客戶體驗。

Throughout the year, we made measurable progress against these strategic initiatives, paving the way for us to accelerate momentum in the years ahead and as the macro and consumer backdrop begins to stabilize. Sitting where we are today, with our cost rationalization and reduction measures nearly complete and behind us, we are focused on continuing to drive these key initiatives into 2025.

全年我們在這些策略舉措方面取得了顯著進展，為我們在未來幾年以及宏觀和消費環境開始穩定時加速發展鋪平了道路。目前，我們的成本合理化和削減措施已基本完成，我們專注於繼續推動這些關鍵措施到 2025 年。

We expect our vision for a more curated and focused assortment to positively impact our separates and shoe categories in the coming quarters. We believe our wholesale channel is gaining momentum, supported by targeted expansions and strong brand partnerships that are driving increased visibility and reach. At the same time, we expect continued investments in our tech stack and AI capabilities to fuel operational optimization and deeper personalization, enhancing the customer experience, improving retention, and supporting long-term profitable growth.

我們期望，我們對更精心策劃和更加集中的商品分類的願景能夠在未來幾季對我們的單品和鞋類產生積極的影響。我們相信，我們的批發管道正在獲得發展動力，這得益於有針對性的擴張和強大的品牌合作夥伴關係，從而提高了知名度和影響力。同時，我們期望繼續投資於我們的技術堆疊和人工智慧能力，以推動營運優化和更深層的個人化，增強客戶體驗，提高保留率，並支援長期獲利成長。

Importantly, we remain disciplined in our approach to financial management, prioritizing a planned refinancing of our revolver into a more flexible ABL, supporting our commitment to improving liquidity, driving sustainable profitability, and generating positive cash flow. While we continue to see macro uncertainty in 2025, we are working diligently to best position our business for success in the years ahead.

重要的是，我們在財務管理方法上保持嚴謹，優先考慮將循環信貸計劃再融資為更靈活的資產凍結貸款 (ABL)，支持我們改善流動性、推動可持續盈利和產生正現金流的承諾。儘管我們仍然看到 2025 年宏觀不確定性，但我們正在努力為我們的業務在未來幾年取得成功做好最佳準備。

As it relates to tariffs, we do expect tariff impact on the business in 2025. Our full-year guidance contemplates the known tariffs as well as our proactive mitigation efforts. While we've taken steps to decrease our exposure to China over the last year, China continues to be one of our primary sourcing locations today.

就關稅而言，我們確實預期關稅會對 2025 年的業務產生影響。我們的全年指導考慮了已知的關稅以及我們主動的緩解措施。儘管我們在過去一年中採取措施減少對中國的依賴，但中國目前仍然是我們主要的採購地點之一。

Importantly, our buys for the first half of the year are generally locked in from a pricing perspective, alleviating tariff exposure through mid-June. In the second half of the year, we plan to have a larger portion of our receipts directly sourced from factories across multiple geographies, which is intended to mitigate tariff pressures as they are outlined today.

重要的是，從定價角度來看，我們上半年的採購量一般都是鎖定的，從而減輕了到六月中旬的關稅風險。今年下半年，我們計劃將更大比例的收據直接來自多個地區的工廠，旨在緩解今天概述的關稅壓力。

We are actively working to accelerate our direct sourcing efforts through year end and into 2026, which we expect will continue to support margin expansion over the long term given less than 5% of our sales are currently driven from products sourced directly from factories.

我們正在積極努力，在年底前和 2026 年加快我們的直接採購力度，我們預計這將繼續支持長期利潤率的擴大，因為目前我們只有不到 5% 的銷售額來自直接從工廠採購的產品。

In addition to these efforts, we are closely managing the incremental impact of tariffs as we've done successfully in the past by sharing the impact across vendors, customers, and our own margins. We continue to closely monitor the evolving situation, and our teams remained highly focused on executing our mitigation efforts of calculated sourcing, pricing adjustments, and leaning on our strong vendor partnerships.

除了這些努力之外，我們還在密切管理關稅的增量影響，就像我們過去成功做到的那樣，透過分擔供應商、客戶和我們自己的利潤來分擔影響。我們將繼續密切關注情勢的發展，我們的團隊仍然高度專注於執行我們的緩解措施，包括計算採購、價格調整以及依靠我們強大的供應商合作夥伴關係。

In summary, we believe we are positioned to navigate these challenges while maintaining flexibility, and our focus remains on executing with discipline and driving long-term growth.

總而言之，我們相信我們有能力在保持靈活性的同時應對這些挑戰，我們的重點仍然是嚴格執行並推動長期成長。

Shifting now to our performance in the fourth quarter, we continue to deliver positive double-digit sales growth in our special occasion, bridesmaids, and bridal categories, reinforcing our leadership in event dressing, even amid a seasonally softer sales period. However, these gains are offset by continued softness in our casual wear segment, which we are actively repositioning to better align with our core focus on event attire.

現在轉向我們第四季度的業績，即使在季節性銷售疲軟時期，我們的特殊場合、伴娘和新娘類別的銷售繼續實現兩位數的正增長，鞏固了我們在活動著裝領域的領導地位。然而，這些收益被我們休閒服部門的持續疲軟所抵消，我們正在積極重新定位該部門，以更好地與我們的核心重點活動服裝保持一致。

We continue to make strong progress against our strategic initiatives and have implemented the majority of our cost reduction efforts, including the successful consolidation of our West Coast distribution facilities in late February 2025. Additionally, securing alternative debt financing remains a top priority.

我們在策略性舉措方面持續取得重大進展，並已實施了大部分成本削減措施，包括於 2025 年 2 月底成功整合西海岸配送設施。此外，確保替代債務融資仍然是重中之重。

I'll start by sharing some of our key positive developments in the fourth quarter. Our special occasion of bridesmaids categories continue to deliver excellent performance in Q4, delivering positive mid-teens year-over-year net sales growth and contributing to another standout quarter for these categories. Seasonal demand remains strong, particularly winter and holiday assortments, reinforcing Lulu's position in the market as a go-to dress destination.

首先，我想分享我們第四季的一些關鍵積極進展。我們的伴娘特殊場合類別在第四季度繼續表現出色，淨銷售額同比增長了十幾歲，為這些類別的另一個出色季度做出了貢獻。季節性需求依然強勁，尤其是冬季和假日系列，鞏固了 Lulu 作為首選服裝市場的市場地位。

Growth was further fueled by first-time reorders of new products, increasing 24% versus last year's Q4, showing positive momentum in our reorder funnel. Purposeful color additions, style introductions, and in-season adjustments help to narrow the year-over-year decline and reorder sales in 2024 from 12% in Q2 to 4% in Q3 and 4% in Q4.

新產品的首次重新訂購進一步推動了成長，與去年第四季相比成長了 24%，顯示出我們的重新訂購管道的積極勢頭。有目的的顏色添加、款式推出和季節調整有助於縮小同比降幅，並將 2024 年的重新訂購銷售額從第二季度的 12% 降至第三季度的 4% 和第四季度的 4%。

We maintained the disciplined inventory management in the fourth quarter, reducing inventory by 4% year over year through calculated markdowns and promotions to maintain healthy levels of inventory. Return rates improved for the second consecutive quarter after eight quarters of year-over-year increases, with an improvement of 150 basis points, highlighting the material improvements we have made in fit and quality.

我們在第四季度保持了嚴格的庫存管理，透過有計劃的降價和促銷使庫存同比減少 4%，以保持健康的庫存水平。退貨率在連續八個季度同比增長後，連續第二個季度有所改善，提高了 150 個基點，突顯了我們在合身度和品質方面取得的實質改進。

On the brand front, we launched several successful campaigns and collaborations on the fourth quarter, driving higher reach, engagement, and media interest, which Mark will share more details around shortly. Earlier this month, we launched a new brand campaign, We are Lulus, to further solidify our position as a go-to dress destination and deepen brand affinity, engagement, and loyalty.

在品牌方面，我們在第四季度推出了幾項成功的活動和合作，提高了影響力、參與度和媒體興趣，馬克很快就會分享更多細節。本月初，我們啟動了一項新的品牌活動“我們是 Lulus”，以進一步鞏固我們作為首選服裝目的地的地位，並加深品牌親和力、參與度和忠誠度。

In wholesale, we made meaningful progress with key retailers while expanding into new collaborations. Q4 wholesale revenue grew 76% year over year, driven by high double-digit gains among major partners and strong momentum and specialty retail. Notably, this February, we announced our new partnerships with Nuuly, Poshmark, and Von Maur. We also deepened our presence with Dillard and Nordstrom's while expanding third-party brand collaborations with Hunter, Reebok, and Dingo 1969, to name a few.

在批發方面，我們與主要零售商的合作取得了有意義的進展，同時擴大了新的合作範圍。第四季批發收入年增 76%，這得益於主要合作夥伴的兩位數高成長以及強勁的發展勢頭和專業零售。值得注意的是，今年 2 月，我們宣布與 Nuuly、Poshmark 和 Von Maur 建立新的合作關係。我們也加強了與 Dillard 和 Nordstrom 的合作，同時擴大了與 Hunter、Reebok 和 Dingo 1969 等第三方品牌的合作。

These growing partnerships reflect our focus on reaching customers across diverse shopping channels while maintaining an efficient, scalable growth model. Given our strong momentum, we expect robust wholesale growth to continue through 2025.

這些不斷成長的合作關係反映了我們專注於透過不同的購物管道接觸客戶，同時保持高效、可擴展的成長模式。鑑於我們強勁的發展勢頭，我們預計強勁的批發成長將持續到 2025 年。

Now addressing the challenges in Q4. Our separates and shoe categories continue to weigh on performance, driving the majority of the year-over-year net sales declines. As outlined last quarter, we have re-evaluated our assortment strategy to better align with our core strength and occasion wear, shifting our separates and footwear assortment towards dressier options more focused around date nights, social events, vacations, and workwear, the occasions that our customers already engaged with us.

現在正在解決第四季的挑戰。我們的單品和鞋類產品持續對業績造成影響，導致淨銷售額年減大部分。正如上個季度所概述的，我們重新評估了我們的分類策略，以更好地與我們的核心優勢和場合服裝保持一致，將我們的單品和鞋類分類轉向更注重約會之夜、社交活動、假期和工作服的更正式的選擇，這些場合我們的客戶已經與我們互動。

This strategic realignment is underway and we are optimistic that a more curated assortment and reduced SKU count will enhance the customer experience while also improving profitability. Our teams are executing on a refined vision of a dressier aesthetic with these changes expected to take place over the next few quarters.

這項策略調整正在進行中，我們樂觀地認為，更精心挑選的商品種類和減少的 SKU 數量將提升客戶體驗，同時提高獲利能力。我們的團隊正在執行更精緻的美學願景，預計這些變化將在未來幾季內發生。

Gross margin declined 120 basis points for the quarter and 50 basis points for the full year compared to the prior-year periods, impacted by higher markdown sales and increased promotional activity to maintain inventory health in response to softer-than-anticipated sales leading up to and following the election cycle. Additionally, profitability remained under pressure due to elevated markdown activity aimed at maintaining a healthy inventory position, the deleveraging of fixed costs on a smaller net revenue base, and the initial one-time costs related to the consolidation of our Northern California distribution center with associated impacts expected to continue through part of Q1 2025.

與去年同期相比，本季毛利率下降了 120 個基點，全年毛利率下降了 50 個基點，這是由於降價銷售增加以及為應對選舉週期前後銷售低於預期而增加的促銷活動以保持庫存健康所致。此外，獲利能力仍面臨壓力，因為為維持健康庫存狀況而進行的降價活動增加、在較小的淨收入基礎上對固定成本進行去槓桿，以及與合併北加州配送中心相關的初始一次性成本，相關影響預計將持續到 2025 年第一季度的部分時間。

In the second half of 2024, we implemented targeted cost reduction measures alongside our high-impact initiatives with the goal to improve profitability and position the company for sustainable growth. In Q4, we began realizing the benefits of Q3 cost reductions related to payroll, capital expenditures, and a smaller Board of Directors, aligning our cost structure more closely with sales. Notably, we outperformed our expectations of 10% to 15% operating expense reductions, achieving 19% in reductions in the second half of 2024 compared to the first half of 2024.

2024 年下半年，我們實施了有針對性的成本削減措施以及高影響力的舉措，目標是提高獲利能力並使公司實現永續成長。在第四季度，我們開始意識到第三季度與工資、資本支出和董事會規模縮小相關的成本削減帶來的好處，從而使我們的成本結構與銷售額更加緊密地結合起來。值得注意的是，我們超越了 10% 至 15% 的營運費用削減預期，與 2024 年上半年相比，2024 年下半年的營運費用削減幅度達到了 19%。

We believe these collective measures will drive ongoing efficiencies, strength and profitability, and support long-term objectives, all while maintaining a robust operating model that fuels our priorities, generates positive cash flow, protects brand integrity, and paves the way for long-term sustainable growth.

我們相信，這些集體措施將推動持續的效率、實力和盈利能力，並支持長期目標，同時保持強勁的營運模式，推動我們的優先事項，產生正現金流，保護品牌完整性，並為長期可持續增長鋪平道路。

With that, I'd like to turn the call over to Mark Vos, our President and Chief Information Officer. Mark will provide updates around progress we are seeing against strategic priorities. Mark?

接下來，我想將電話轉給我們的總裁兼資訊長馬克沃斯 (Mark Vos)。馬克將提供有關我們在戰略重點方面取得的進展的最新資訊。標記？

Thank you, Crystal. Active customer accounts remain stable through year end, holding flat quarter over quarter despite a year-over-year decline.

謝謝你，Crystal。活躍客戶帳戶在年底保持穩定，儘管同比有所下降，但環比保持平穩。

New customer loyalty adoption rates continued to gain momentum, while our Love Rewards membership saw another quarter of double-digit growth, driving an overall increase in total membership. We are encouraged by the consistent quarterly improvements in these key metrics, which we believe reflect the strength of our targeted focus on brand, assortment, and customer engagement.

新客戶忠誠度採用率持續保持強勁成長勢頭，而我們的「愛心獎勵」會員數量又實現了兩位數的成長，推動了會員總數的整體成長。這些關鍵指標每季持續改善，這讓我們感到鼓舞，我們相信這反映了我們對品牌、產品分類和客戶參與度的重點關注。

We continued to successfully reactivate the lapsed customers at a higher rate than Q4 2023 and at a similar rate as Q3 2024, with many customers returning after a 12-month lapse for high-performing categories like bridesmaid, special occasion, and day event dresses.

我們繼續成功地重新激活了流失的客戶，其激活率高於 2023 年第四季度，與 2024 年第三季度相似，許多客戶在 12 個月後又回來購買伴娘、特殊場合和日間活動禮服等高績效類別的產品。

While our international presence is still in its early stages, it continued to show strong year-over-year growth in Q4, making fiscal year 2024 a high double-digit international growth year. We will continue optimizing our US-based international shipping model, improving our net international sale margins, and intentionally building brand awareness in select markets.

雖然我們的國際業務仍處於起步階段，但第四季繼續呈現強勁的同比成長，使 2024 財年成為國際業務實現兩位數高成長的一年。我們將繼續優化我們基於美國的國際運輸模式，提高我們的國際淨銷售利潤率，並有意在特定市場建立品牌知名度。

I'll now share some progress updates around our strategic initiatives during the quarter. Starting with our product assortment optimization and related margin expansion efforts. Alongside key year-end campaigns like Heritage Prep, Holiday, and La Dolce Vita, we leverage AI-driven site merchandising to enhance product discovery and better connect with our customer, in many cases, driving strong engagement and purchase intent.

我現在將分享本季度我們策略舉措的一些進展更新。從我們的產品組合優化和相關的利潤擴大努力開始。除了 Heritage Prep、Holiday 和 La Dolce Vita 等關鍵的年終活動外，我們還利用人工智慧驅動的網站行銷來增強產品發現並更好地與客戶聯繫，在許多情況下，推動強大的參與度和購買意願。

We continue to explore AI capabilities to further optimize displaying our new and existing assortments to our customers in a data-driven and, where possible, personalized way. Our fit enhancement efforts continue to deliver results, with return rates improving for the second consecutive quarter. Our holistic approach, focused on fit flexibility and consistency across key categories, remains a priority as we work to further reduce fit-related returns.

我們將繼續探索人工智慧功能，以進一步優化以數據驅動和盡可能個人化的方式向客戶展示我們的新產品和現有產品。我們的合身度提升工作持續取得成效，退貨率連續第二季提高。我們的整體方法著重於關鍵類別的適應靈活性和一致性，這仍然是我們努力進一步減少與適應相關的退貨的首要任務。

Following the rollout of our new return policy in Q2 2024, we saw an uptick in reported damages in Q4 2024. To address this, we realigned our policy in Q1 of 2025 to a flat fee rather than a per unit return fee, a move we expect will curb fraudulent claims while maintaining positive return rate trends.

繼 2024 年第二季推出新的退貨政策後，我們發現 2024 年第四季報告的損失增加。為了解決這個問題，我們在 2025 年第一季將保單調整為固定費用，而不是按單位退貨費用，我們預計此舉將遏制欺詐性索賠，同時保持積極的退貨率趨勢。

The rollout of size double XL is progressing as planned, and initial reads continue to show that return rates across the sizes extra large and double XL combined have improved. Additionally, we also see an encouraging start of new customer acquisition based on size double XL and expect that the addition of this size over time will contribute to expanding our customer base.

雙 XL 尺寸的推出正在按計劃進行，初步數據顯示，特大號和雙 XL 尺寸的退貨率均有所改善。此外，我們還看到基於雙 XL 尺寸的新客戶獲取的令人鼓舞的開端，並期望隨著時間的推移增加此尺寸將有助於擴大我們的客戶群。

We're also adding double XS sizing to our more products, resulting in a broad sizing range from double XS to double XL across various product classes, and additional extended sizing from 1X to 3X in predominantly bridesmaid dresses. This full-size range supports the notion that Lulu's is the dress destination for all of life's moments and the healthy sell through we see underscores the demand across our customer base.

我們還在更多產品中增加了雙 XS 尺寸，從而在各個產品類別中形成了從雙 XS 到雙 XL 的廣泛尺寸範圍，並且主要在伴娘禮服中增加了從 1X 到 3X 的額外擴展尺寸。這個全尺寸系列支持了這樣的理念：Lulu's 是生活中所有時刻的著裝目的地，我們看到的健康銷售凸顯了我們整個客戶群的需求。

While we've made progress diversifying our sourcing out of China, a significant portion of our products are manufactured there. As we discussed last quarter, we are confident in our ability to largely mitigate the impact of recent tariffs using tactics successfully deployed in prior years, distributing costs across the vendors, customers, and our own margins.

雖然我們在實現中國以外的採購多元化方面取得了進展，但我們的產品很大一部分都是在中國生產的。正如我們上個季度所討論的那樣，我們有信心透過前幾年成功部署的策略，將成本分攤到供應商、客戶和我們自己的利潤中，在很大程度上減輕近期關稅的影響。

In the near term, we believe the value and quality of our Lulu's products allow for sufficient price elasticity to absorb a portion of the impact through surgical price adjustments. Over the medium to long term, our direct sourcing initiatives and country of origin diversification position us to offset tariff-related pressures while maintaining product quality and a competitive pricing structure.

短期內，我們相信 Lulu 產品的價值和品質具有足夠的價格彈性，可以透過手術價格調整吸收部分影響。從中長期來看，我們的直接採購計劃和原產國多元化使我們能夠抵消關稅相關壓力，同時保持產品品質和有競爭力的定價結構。

Turning to our investments in strengthening brand awareness and customer engagement. We continue to elevate the Lulu's brand through calculated investments in awareness, engagement, and customer loyalty. In the fourth quarter, we launched high-impact, third-party, and influencer partnerships, brand campaigns, and feasibility programs, and substantially grew our ambassador program by more than 50%, driving increased social engagement by 33% quarter over quarter. These efforts helped to deliver new customers, lowered acquisition costs, and created strong momentum.

談到我們在加強品牌知名度和客戶參與度方面的投資。我們透過在知名度、參與度和客戶忠誠度方面的精心投資來不斷提升 Lulu 的品牌。第四季度，我們啟動了高影響力的第三方和有影響力的合作夥伴關係、品牌活動和可行性計劃，並將我們的大使計劃大幅增長了 50% 以上，推動社交參與度環比增長 33%。這些努力有助於吸引新客戶、降低收購成本並創造強勁發展動能。

We activated the Lulu's brand around key pop cultural moments, showing up where it matters most to our customers. Highlights include attending Sabrina Carpenter's Short n' Sweet tour and taking advantage of fall formal season featuring partnerships with collegiate sororities nationwide.

我們在關鍵流行文化時刻啟動了 Lulu 品牌，並將其展示在對客戶最重要的地方。亮點包括參加 Sabrina Carpenter 的 Short n' Sweet 巡演並利用秋季正式季節與全國各地的大學姐妹會建立合作關係。

We curated events and content with our ambassador and influencer network. We drove strong reach and elevated brand impressions. Additionally, as Crystal mentioned, we launched this March our new out-of-home brand campaign, We are Lulus, to kick off International Women's Month.

我們與我們的大使和影響者網絡一起策劃活動和內容。我們擴大了影響力並提升了品牌印象。此外，正如 Crystal 所提到的，我們於今年 3 月推出了新的戶外品牌活動“我們是 Lulus”，以慶祝國際婦女節。

Building on the success of last year's Friends of Life campaign, which nearly doubled the brand's recall over Lulu's 2021 digital campaign, this multi-face initiative highlights our positioning as a dress destination and features our Lulu's team through customer-facing activations and events, influencer collaborations, and out-of-home marketing, such as prime billboard placement in New York's Times Square and targeted placements in key college cities to foster early brand loyalty and capture the attention of a high-value demographic at a pivotal stage. We see a significant opportunity to continue investing in awareness as a long-term growth driver.

去年「生命之友」活動取得了成功，該活動使 Lulu 的品牌召回率幾乎比 2021 年的數位活動高出一倍，在此基礎上，這項多面舉措凸顯了我們作為著裝目的地的定位，並通過面向客戶的激活和活動、影響力合作和戶外營銷來展示我們的 Lulu 團隊，例如在紐約時代廣場的主要關注點廣告城市廣場以及全球廣告城市的忠誠度。我們看到了繼續投資意識作為長期成長動力的重大機會。

Our third initiative focuses on driving technology enablement to improve decisioning, efficiencies, and create seamless customer experience across channels. In Q4, the Lulu's app saw a significant increase in usage, conversion, and year-over-year revenue growth, fueled by extended performance marketing integration into the app. We see continued app growth opportunities, and we will be testing first time app-only features that personalize the customer experience even further.

我們的第三項舉措重點是推動技術支持，以改善決策、提高效率並在各個管道創造無縫的客戶體驗。第四季度，Lulu 應用程式的使用率、轉換率和年收入均顯著增長，這得益於應用程式中績效行銷整合的擴展。我們看到了應用程式持續成長的機會，我們將首次測試僅限應用程式的功能，以進一步個性化客戶體驗。

Additionally, we released return policy updates and enabled robotics-driven fulfillment and returns in our Southern California distribution facility. We also launched the Lulu's and Poshmark integration, and we are very excited that our customers can now list their high-quality Lulu's products on Poshmark directly and effortlessly from their Lulu's order history page, and in that way, extend the life and usage of Lulu's products.

此外，我們發布了退貨政策更新，並在南加州配送中心啟用了機器人驅動的配送和退貨。我們也推出了 Lulu 和 Poshmark 的整合，我們非常高興我們的客戶現在可以從他們的 Lulu 訂單歷史頁面直接輕鬆地在 Poshmark 上列出他們的高品質 Lulu 產品，並以此延長 Lulu 產品的使用壽命。

We recently consolidated two of our distribution facilities by moving operations from our former distribution facility in Chico, Northern California, to our existing logistics facility in Southern California. Consolidation started in Q4 2024 and was successfully completed in Q1 2025. Kudos to all the teams involved who did a fantastic job ensuring that our customers were never impacted by this move of operations and continued to receive their orders on time.

我們最近將兩個配送設施合併，將業務從位於北加州奇科的原配送設施轉移到位於南加州的現有物流設施。合併工作於 2024 年第四季開始，並於 2025 年第一季成功完成。我們向所有參與的團隊表示敬意，他們出色地完成了工作，確保我們的客戶不會受到此次營運變動的影響，並繼續按時收到訂單。

A special thanks and shout out to all Chico Distribution Center colleagues who cared deeply about our customers and the quality of their work. They will always remain an essential part of the Lulu's story. All in all, we are encouraged by the continued momentum across our strategic initiatives as we enhance cost efficiency and more effectively expand our reach to a broader customer base.

特別感謝並讚揚所有關心我們的客戶和工作品質的奇科配送中心同事。它們永遠是 Lulu 故事的重要組成部分。總而言之，隨著我們提高成本效率並更有效地擴大客戶群，我們對各項策略性舉措的持續發展動能感到鼓舞。

And now I'll hand you over to Tiffany Smith, Lulu's Chief Financial Officer, to provide more color on our financials.

現在我將把時間交給 Lulu 的財務長 Tiffany Smith，讓她為大家詳細介紹我們的財務狀況。

Thanks, Mark, and good afternoon, everyone. As anticipated, our Q4 net revenue was approximately $66.1 million, down 12% year over year, driven by a 12% decrease in total orders placed and a 5% decrease in average order value, partially offset by improved return rates which improved for the second consecutive quarter on a year-over-year basis.

謝謝，馬克，大家下午好。正如預期的那樣，我們的第四季度淨收入約為 6,610 萬美元，年減 12%，原因是訂單總量下降 12%，平均訂單價值下降 5%，但退貨率的提高部分抵消了這一下降，退貨率連續第二個季度同比改善。

For the full year, net revenue total $315.9 million, down 11% versus 2023, primarily due to a 12% decline in total orders placed and higher return rates, partially offset by a 3% increase in average order value.

全年淨收入總計 3.159 億美元，較 2023 年下降 11%，主要原因是訂單總量下降 12% 且退貨率上升，但平均訂單價值增長 3% 部分抵消了這一影響。

Gross margin for the quarter was 37.9%, down 120 basis points versus the prior year, impacted by higher markdowns and discounts and ongoing softness in casual wear. For the full year, gross margin declined 50 basis points to 41.2% compared to 2023.

本季毛利率為 37.9%，較前一年下降 120 個基點，受降價和折扣力度加大以及休閒服持續疲軟的影響。全年毛利率較 2023 年下降 50 個基點至 41.2%。

On the expense side, Q4 selling and marketing expenses totaled $12.7 million, down about $2.6 million year over year as we shifted our investment toward higher markdowns and discounts. For the full year, selling and marketing expenses were $72.9 million, a reduction of $3.4 million versus 2023, reflecting discipline cost management, as well as a higher mix of marked down and discounts.

在費用方面，第四季度銷售和行銷費用總計 1,270 萬美元，年減約 260 萬美元，因為我們將投資轉向更高的降價和折扣。全年銷售和行銷費用為 7,290 萬美元，較 2023 年減少 340 萬美元，反映出嚴格的成本管理，以及降價和折扣的組合增加。

General and administrative expenses decreased $2.9 million to $18.9 million in Q4 2024, a 13.3% decline year over year due to lower employee-related costs driven by fixed cost reduction and lower variable labor and supply costs due to lower sales. For the full year, general and administrative expenses were $81.3 million, down $10.8 million or 11.7% from $92.1 million in 2023, driven by a combination of fixed cost reductions, lower variable costs resulting from lower revenues, and lower insurance costs.

2024 年第四季，一般及行政支出減少 290 萬美元至 1,890 萬美元，年減 13.3%，原因是固定成本降低導致員工相關成本降低，以及銷售額下降導致變動勞動力和供應成本降低。全年一般及行政開支為 8,130 萬美元，較 2023 年的 9,210 萬美元減少 1,080 萬美元（降幅 11.7%），主要原因是固定成本減少、收入下降導致的變動成本降低以及保險成本降低。

Net loss for Q4 worsened to $31.9 million from $7.2 million year over year, reflecting the impact of a non-cash $28.4 million goodwill impairment charge. Excluding the goodwill charge, our adjusted net loss for the quarter of $3.5 million represents the narrowest loss of the last six quarters and more than a 50% reduction in the net loss in Q4 of last year.

第四季淨虧損從去年同期的 720 萬美元擴大至 3,190 萬美元，反映了 2,840 萬美元非現金商譽減損費用的影響。不計商譽費用，本季調整後的淨虧損為 350 萬美元，是過去六個季度以來虧損最窄的一次，比去年第四季的淨虧損減少了 50% 以上。

Our focus cost reduction efforts drove $5.5 million or 15% in savings across selling and marketing and general and administrative expenses, more than offsetting the gross profit decline of $4.3 million. Q4's net loss also benefited from a state income tax receivable accrual contributing to a $2.7 million year-over-year increase in the income tax benefit and a realized Q1 2025 cash benefit.

我們專注於削減成本，在銷售、行銷和一般及行政開支方面節省了 550 萬美元（15%），足以抵銷 430 萬美元的毛利下降。第四季淨虧損也受惠於州所得稅應收款的應計，導致所得稅收益年增 270 萬美元，並實現了 2025 年第一季的現金收益。

For the full year, our net loss was $55.3 million compared to $19.3 million in 2023. Included in the current year's net loss was a non-cash goodwill impairment charge of $28.4 million. Excluding the goodwill impairment, our adjusted net loss for the year was $26.9 million.

全年淨虧損為 5,530 萬美元，而 2023 年為 1,930 萬美元。本年度淨虧損包括 2,840 萬美元的非現金商譽減損費用。不包括商譽減值，我們本年度的調整後淨虧損為 2,690 萬美元。

Q4's adjusted EBITDA loss was approximately $3.3 million compared to a $2 million loss in Q4 2023, driven primarily by the impact of lower gross profit, partially offset by lower expenses. Adjusted EBITDA margin was negative 5% versus negative 2.6% in the prior year. For the full year, adjusted EBITDA loss was approximately $9.7 million compared to a gain of 3.2 million in 2023, with full-year adjusted EBITDA margin of negative 3.1% versus positive 0.9% in 2023.

第四季調整後的 EBITDA 虧損約為 330 萬美元，而 2023 年第四季虧損為 200 萬美元，這主要受毛利下降的影響，但部分被費用下降所抵銷。調整後的 EBITDA 利潤率為負 5%，而去年同期為負 2.6%。全年調整後 EBITDA 虧損約 970 萬美元，而 2023 年則獲利 320 萬美元；全年調整後 EBITDA 利潤率為負 3.1%，而 2023 年則為正 0.9%。

Interest expense total $313,000 in Q4 versus $337,000 in Q4 2023 and $1.3 million for the full year 2024 compared to $1.7 million in 2023.

第四季利息支出總計 313,000 美元，而 2023 年第四季為 337,000 美元；2024 年全年利息支出總計 130 萬美元，而 2023 年為 170 萬美元。

Diluted loss per share for the quarter was $0.76 compared to a diluted loss per share of $0.18 in Q4 of 2023. Excluding the impact of the goodwill impairment, our adjusted diluted loss per share for the quarter would have been $0.08, representing a $0.10 improvement compared to Q4 of 2023. Our full-year diluted loss per share was $1.33 which was $0.85 worse compared to 2023. Excluding the goodwill impairment, our adjusted diluted loss per share for the year would have been $0.65, or $0.17 worse than 2023.

本季每股攤薄虧損為 0.76 美元，而 2023 年第四季每股攤薄虧損為 0.18 美元。不包括商譽減損的影響，本季調整後每股攤薄虧損為 0.08 美元，較 2023 年第四季改善 0.10 美元。我們的全年每股攤薄虧損為 1.33 美元，比 2023 年減少 0.85 美元。不包括商譽減值，我們本年度調整後的每股攤薄虧損將為 0.65 美元，比 2023 年減少 0.17 美元。

In Q4 2024, net cash used in operating activities was $2.5 million, an improvement from $5.7 million net cash used last year. Free cash flow used in the quarter of $3 million improved by $3.7 million year over year. We ended the quarter with net debt of $8.6 million, an increase of $3.1 million compared to Q4 of 2023.

2024 年第四季，經營活動所用淨現金為 250 萬美元，較去年的 570 萬美元有所改善。本季使用的自由現金流為 300 萬美元，較去年同期增加 370 萬美元。本季末，我們的淨債務為 860 萬美元，與 2023 年第四季相比增加了 310 萬美元。

For the full year, net cash provided by operating activities was $2.6 million compared to $15.4 million in 2023. Free cash flow used for the year was $0.3 million compared to free cash flow generated of $11.5 million in 2023.

全年經營活動提供的淨現金為 260 萬美元，而 2023 年為 1,540 萬美元。本年度使用的自由現金流為 30 萬美元，而 2023 年產生的自由現金流為 1,150 萬美元。

Our inventory balance at quarter end was $34 million, down about $1.4 million year over year, reflecting ongoing discipline and inventory management. Inventory levels were down 4% year over year, while our fiscal year 2024 sales were down 11%. This reflects the impact of prior-year inventory carryover sales, which boosted 2023's results but did not recur in 2024.

我們季度末的庫存餘額為 3,400 萬美元，年減約 140 萬美元，反映了持續的紀律和庫存管理。庫存水準年減 4%，而 2024 財年的銷售額下降了 11%。這反映了上一年庫存結轉銷售的影響，該影響提高了 2023 年的業績，但在 2024 年並未重現。

To provide further context on our credit facility, as of the end of Q4, we had $13.1 million borrowed under the $15 million dollar revolving line. During the first quarter of 2025, we made a $3 million repayment and do not have access to additional borrowings under our credit facility.

為了進一步說明我們的信貸安排，截至第四季末，我們在 1,500 萬美元的循環信貸額度下借了 1,310 萬美元。2025 年第一季度，我們償還了 300 萬美元，無法根據我們的信貸安排獲得額外借款。

As outlined in our 10-K, we've executed an additional amendment to our credit agreement which provides a limited waiver to compliance with the financial covenants for the period of four fiscal quarters ended on or about December 31, 2024, as well as a suspension of measurement of certain financial covenants for the first quarter ending on or about March 31, 2025, while we continue to pursue alternative financing. The amendment contemplates that we will complete a refinancing and exit the credit agreement with Bank of America by June 15, 2025.

正如我們的 10-K 報表中所述，我們對我們的信貸協議進行了額外的修訂，該修訂規定，在截至 2024 年 12 月 31 日左右的四個財政季度內，我們對財務契約的遵守情況提供了有限的豁免，並且暫停了截至 2025 年 3 月 31 日左右的第一季財務契約的衡量。該修正案規定，我們將在 2025 年 6 月 15 日之前完成再融資並退出與美國銀行的信貸協議。

Moving on to guidance. For fiscal year 2025, we anticipate net revenue to be between $280 million and $310 million, which represents a decrease of between 11% and 2% compared to 2024. The low end of our range contemplates further macroeconomic pressures and challenges to consumer confidence and demand. The upper end of the range assumes stable demand and continued improvements in our product assortment and brand.

繼續指導。對於 2025 財年，我們預計淨收入將在 2.8 億美元至 3.1 億美元之間，與 2024 年相比下降 11% 至 2%。我們的低端範圍考慮到了進一步的宏觀經濟壓力以及消費者信心和需求的挑戰。此範圍的上限假設需求穩定且我們的產品種類和品牌持續改進。

As noted last year, we began implementing cost reduction measures in the second half of 2024 to improve profitability and align our cost structure with sales growth trends. The benefit of these reductions is expected to drive an inflection to positive adjusted EBITDA in 2025. Our adjusted EBITDA outlook for 2025 is expected to be between $0 and $6 million, representing an increase of between $9.7 million and $15.7 million compared to 2024. The downside of our adjusted EBITDA outlook contemplates a worsening consumer backdrop and margin pressure related to inability to mitigate the impact of tariffs.

正如去年所指出的，我們從 2024 年下半年開始實施成本削減措施，以提高獲利能力並使我們的成本結構與銷售成長趨勢保持一致。預計這些削減將推動 2025 年調整後 EBITDA 轉為正值。我們預計 2025 年調整後的 EBITDA 將在 0 至 600 萬美元之間，與 2024 年相比增加 970 萬美元至 1570 萬美元。我們調整後的 EBITDA 前景的下行因素包括消費者環境惡化以及因無法減輕關稅影響而導致的利潤率壓力。

Related to liquidity, we anticipate our Q1 2025 ending net debt position to be between $3 million and $4 million, down from $8.6 million as of the end of Q4 2024. And we expect to be operating cash flow positive in 2025, including in Q1 2025. Lastly, we expect another well-controlled year of capital expenditures, which are planned to be between $2.5 million and $3 million, down between 13% to flat versus the prior year.

在流動性方面，我們預計 2025 年第一季末的淨債務狀況將在 300 萬美元至 400 萬美元之間，低於 2024 年第四季末的 860 萬美元。我們預計 2025 年（包括 2025 年第一季）的經營現金流量將為正值。最後，我們預計今年的資本支出將得到良好控制，計劃在 250 萬美元至 300 萬美元之間，與前一年相比下降 13% 至持平。

And with that, I'll pass it back to Crystal for closing remarks.

最後，我將把發言交還給 Crystal，請她做最後發言。

Thank you, Tiffany. We are confident that our clear focus on assortment optimization, brand awareness to drive customer engagement, and investments in our tech-enabled business model, alongside disciplined cost management, positions us for sustainable growth and improved profitability in the year ahead.

謝謝你，蒂芙尼。我們相信，我們明確關注產品組合優化、品牌知名度以推動客戶參與、投資於技術支援的商業模式，加上嚴格的成本管理，將使我們在未來一年實現永續成長和提高獲利能力。

While work remains to reset our shoes and separates businesses, we are encouraged by the strong momentum in dresses and wholesale. By optimizing our business model and refining our casual segment towards dressier separates, we are reinforcing our commitment to operational excellence, adaptability, and long-term success in an evolving consumer landscape.

儘管我們仍需努力重塑鞋履和單品業務，但服裝和批發業務的強勁勢頭令我們感到鼓舞。透過優化我們的商業模式並將我們的休閒部門改進為更正式的單品，我們正在加強對卓越營運、適應性和在不斷變化的消費者環境中取得長期成功的承諾。

I'd like to thank our Lu crew for their tireless commitment to our brand and our customers, our loyal customers for their continued trust, and our valued shareholders for their continued support.

我要感謝我們的陸團隊對我們的品牌和客戶的不懈承諾、我們忠實客戶的持續信任以及我們尊貴的股東的持續支持。

As we strengthen our position as the go-to dress destination for life's special moments, we remain confident in our path forward. We look forward to sharing our progress on our next earnings call.

隨著我們鞏固作為人生特殊時刻首選著裝目的地的地位，我們對未來的道路充滿信心。我們期待在下次收益電話會議上分享我們的進展。

And with that, I'll turn it over to questions now.

好了，現在我將開始提問。

(Operator Instructions) This does conclude the question-and-answer session as well as today's teleconference. Thank you for your participation. You may disconnect your lines at this time.

（操作員指示）問答環節以及今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。