Lulu's Fashion Lounge Holdings Inc (LVLU) 2025 Q3 法說會逐字稿

Good afternoon, and welcome to Lulu's third-quarter 2025 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 2025 年第三季財報電話會議。今天的電話會議將進行錄音，我們預留了一個小時來準備好的發言和問答環節。

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.

此時，我想把會議交給 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 Fiscal Third Quarter 2025 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. All statements made on this call that do not relate to matters of historical fact 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 in the coming quarter, 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, references to the fiscal year ending December 28, 2025, including our financial outlook for fourth quarter and fiscal year 2025, market opportunities, buying strategies, product launches, SKU management, our technology enablement initiative and personalized shopping and other initiatives.

各位下午好，感謝各位參加本次會議，共同探討 Lulu 2025 財年第三季業績。在會議開始前，我們想提醒各位，本次電話會議將包含 1995 年《私人證券訴訟改革法案》所界定的前瞻性陳述。本次電話會議中所有與歷史事實無關的陳述均應視為前瞻性陳述，包括但不限於：管理層的預期、計劃、戰略、目標和目的及其執行情況；下一季的增長機會；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，包括關稅徵收、消費者需求和退貨率對我們業務的影響；我們對未來財務業績持續影響的預期，包括關稅徵收、消費者需求和退貨率對我們業務的影響；我們對未來財務業績的預期成本日的財政年度，包括我們對 2025 年第四季和整個財政年度的財務展望；市場機會；採購策略；產品發布；SKU 管理；我們的技術賦能計劃和個性化購物以及其他計劃。

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 ended December 29, 2024, and our quarterly reports on Form 10-Q for the fiscal quarters ended March 30, 2025, and June 29, 2025, all of which can be found on our website at investors.lulus.com.

這些前瞻性陳述受到各種風險、不確定性、假設和其他重要因素的影響，這些因素可能導致我們的實際結果、績效或成就與這些前瞻性陳述中明示或暗示的結果、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均有詳細說明，包括截至 2024 年 12 月 29 日的財政年度的 10-K 表格年度報告，以及截至 2025 年 3 月 30 日和 2025 年 6 月 29 日的會計季度的 10-Qlu.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. 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.

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。雖然我們未來可能會選擇更新此類前瞻性聲明，但除法律要求外，我們不承擔任何修訂或更新任何前瞻性聲明或資訊的義務。在今天的電話會議中，我們還將提及一些非GAAP財務訊息，包括調整後的EBITDA、調整後的EBITDA利潤率、淨債務和自由現金流。

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.

我們在一些財務討論中使用非GAAP指標，因為我們認為這些指標能更準確地反映我們業務的真實營運績效和潛在結果。本非公認會計準則財務資訊的列示並非旨在孤立地看待，也不應被視為替代或優於依照公認會計準則編制和列示的財務資訊。

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. A description of these metrics can also be found in this afternoon's press release and in our SEC filings. Joining me on the call today are our CEO, Crystal Landsem; our fractional CFO, Heidi Crane; and our President and CIO, Mark Vos.

我們的非GAAP指標可能與其他公司使用的非GAAP指標不同。有關 GAAP 與非 GAAP 指標的調節以及每項指標的使用說明、局限性和理由，請參閱今天下午的新聞稿和我們提交給美國證券交易委員會的文件。我們也使用一些關鍵的營運指標，包括毛利率、平均訂單價值和訂單總數。這些指標的詳細說明也可以在今天下午的新聞稿和我們提交給美國證券交易委員會的文件中找到。今天與我一起參加電話會議的有我們的執行長 Crystal Landsem；我們的兼職財務長 Heidi Crane；以及我們的總裁兼資訊長 Mark Vos。

Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Crystal.

在我們發言完畢後，我們將開放提問環節。接下來，我將把電話交給克莉絲塔爾。

Thank you, Naomi, and good afternoon, everyone. We appreciate you joining us today. Our third quarter results reflect the meaningful progress we are making, strengthening and optimizing key areas of the business through consistent execution of our strategic priorities and an eye towards more occasion wear focused assortment. We believe we are on a solid path with another quarter of material sequential improvement in our quarterly year-over-year net revenue comparisons and another consecutive quarter of positive adjusted EBITDA, in line with our expectations. Special occasion and bridesmaid categories continue to outperform, giving us confidence in our event attire strategy and reinforcing the strength of our attainable luxury value proposition.

謝謝你，娜歐米，大家下午好。感謝您今天蒞臨。第三季業績反映了我們取得的實質進展，透過持續執行策略重點，加強和優化業務的關鍵領域，並著眼於更注重場合服裝的產品系列。我們相信，我們正走在一條穩健的道路上，季度同比淨收入連續第二個季度實現實質性改善，調整後 EBITDA 也連續第二個季度為正，符合我們的預期。特殊場合和伴娘服裝類別持續表現優異，這讓我們對自己的活動服裝策略充滿信心，並鞏固了我們觸手可及的奢華價值主張的優勢。

The outperformance in special occasion was offset by continued weaker performance in casual wear and footwear assortments, which we are actively realigning towards a more curated event-focused assortment. Importantly, we entered into a credit agreement with White Oak Commercial Finance in the third quarter, which strengthens our liquidity position and significantly improves our financial flexibility.

特殊場合服裝的優異表現被休閒服裝和鞋類產品持續疲軟的表現所抵消，我們正在積極調整這些產品，使其更加註重精心策劃的活動主題。重要的是，我們在第三季與 White Oak Commercial Finance 簽訂了信貸協議，這增強了我們的流動性，並顯著提高了我們的財務靈活性。

Combined with another quarter of positive adjusted EBITDA performance, a more efficient cost structure and a healthier balance sheet with the closing of our new ABL facility, we believe we are well positioned to continue executing against our strategic priorities, which are geared towards strengthening our foundation, driving customer engagement and setting us up for sustainable long-term growth.

結合另一個季度調整後 EBITDA 的積極表現、更有效率的成本結構以及隨著新 ABL 設施的關閉而更加健康的資產負債表，我們相信我們已做好充分準備，繼續執行我們的戰略重點，這些重點旨在加強我們的基礎、提高客戶參與度，並為可持續的長期增長奠定基礎。

I'd like to highlight a number of key positive developments from the quarter, which showcase the continued momentum we're seeing across the business as a result of our strong execution against our strategic initiatives. Special occasion continues to lead outperformance with formal and bridesmaid categories driving ongoing year-over-year net sales growth on top of a double-digit comparison in the prior year period.

我想重點介紹本季度的一些關鍵積極進展，這些進展表明，由於我們強有力的策略舉措執行，整個業務正持續保持成長勢頭。特殊場合用品繼續保持優異表現，其中正式禮服和伴娘禮服類別推動淨銷售額同比增長，而上年同期則實現了兩位數的增長。

Our continued strong performance in event dressing gives us increased confidence in our assortment strategy and value proposition and further supports our conviction that we are a leading destination for getting dressed up for under $200. Worth noting, these product classes year-to-date had a three-year CAGR of 6.7% and in Q3 2025 had a three-year CAGR of 9.5%, showing the growth acceleration throughout 2025. First-time reorders of new products once again saw sequential and year-over-year growth.

我們在活動服裝領域持續強勁的表現，使我們對自己的產品組合策略和價值主張更有信心，並進一步鞏固了我們的信念，即我們是 200 美元以下盛裝打扮的領先目的地。值得注意的是，這些產品類別今年迄今的三年複合年增長率為 6.7%，到 2025 年第三季度，三年複合年增長率為 9.5%，顯示 2025 年全年增長加速。新產品的首次補貨訂單再次實現了環比和同比增長。

Our refined reorder and merchandising strategies are working, and we are investing in areas of our new product assortment where there is demand to build upon in our successes in these areas. Total reorder business inflected to positive in the back half of the quarter, led by success across our reorder and debut reorder event dress businesses and validating our strategy to lean into optimizing fewer SKUs with color additions and fabrication adds to build out our winning programs that customers tell us they love.

我們改進的補貨和商品銷售策略正在奏效，我們正在投資新產品系列中存在需求的領域，以鞏固我們在這些領域的成功經驗。本季後半段，整體再訂購業務轉為正成長，這主要得益於我們的再訂購和首次再訂購活動禮服業務的成功，也驗證了我們透過優化更少的 SKU，並增加顏色和布料來打造客戶喜愛的成功專案的策略。

Product margins improved for the fourth consecutive quarter. This is reflected an approximately 500 basis point increase compared to the prior year period and 25 basis points higher than our pre-pandemic third quarter merchandise margin high point, illustrating the gap we've closed from a margin recovery perspective. The improvement highlights the continued consumer demand for our higher-margin product categories, further supported by our pricing and margin enhancement initiatives and fewer markdown sales, which we remain focused on to drive steady margin improvement going forward.

產品利潤率連續第四個季度提高。這反映出與去年同期相比成長了約 500 個基點，比疫情前第三季商品毛利率最高點高出 25 個基點，顯示我們在毛利率恢復方面已經縮小了差距。這項改善凸顯了消費者對我們高利潤產品類別的持續需求，這得益於我們的定價和利潤提升舉措以及減少降價促銷，我們將繼續專注於此，以推動利潤率在未來穩步提升。

Gross margins expanded 450 basis points to 42.6% over the prior year period with monthly sequential improvement through the quarter. Our focus on selling profitably and at higher margins is yielding results, and we remain focused on continuing to optimize gross margins through a mix of SKU optimization, sourcing, price and cost efficiencies.

毛利率較上年同期成長 450 個基點至 42.6%，且本季較上季持續改善。我們專注於以更高的利潤率和更高的利潤率進行銷售，並已取得成效。我們將繼續專注於透過 SKU 優化、採購、價格和成本效率等手段來優化毛利率。

Return rates improved 110 basis points from 2Q, underscoring the ongoing impact of our improved fit and quality efforts and measured return policy adjustments. Brand momentum continues to build as we lean further into visibility initiatives to drive discovery and relevance. During the third quarter, we launched our first fall brand campaign and leverage editorial and influencer engagement around cultural moments and through talent partnerships.

退貨率較第二季改善了 110 個基點，凸顯了我們改善合身度和品質措施以及調整退貨政策的持續影響。隨著我們進一步加強宣傳力度，提升品牌知名度和相關性，品牌發展動能持續增強。第三季度，我們推出了第一個秋季品牌宣傳活動，並圍繞文化熱點和人才合作，利用編輯和影響者的互動來推廣品牌。

Our brand equity score has remained strong throughout the year, reflecting growing brand recognition and connection despite a more competitive market. Our wholesale business is ramping up with vigor with an exciting pipeline of interest in several new major partners and boutiques added during the third quarter, resulting in our in-store and online wholesale presence expanding to six major retailers in Q3.

儘管市場競爭日益激烈，但我們的品牌資產評分全年保持強勁，反映出品牌知名度和連結度不斷提高。我們的批發業務正在蓬勃發展，第三季度新增了幾家主要合作夥伴和精品店，並獲得了令人興奮的合作意向，使得我們的店內和線上批發業務在第三季度擴展到了六家主要零售商。

As a result, we have achieved triple-digit seven-figure year-over-year growth in wholesale revenue year-to-date. The strong engagement we're seeing in this channel reinfirms the meaningful opportunity we see in the near and long term as we expand our footprint with existing partners and add brand-accretive majors and boutiques to drive profitable wholesale volume and put Lulu's products in the hands of more consumers nationwide.

因此，今年迄今為止，我們的批發收入實現了三位數的七位數年增長。我們在這個管道看到的強勁參與度，再次印證了我們在近期和長期內看到的巨大機會。我們將與現有合作夥伴擴大業務範圍，並增加能夠提升品牌價值的大型零售商和精品店，從而推動盈利性批發量，並將 Lulu 的產品送到全國更多消費者手中。

And last, we sustained positive adjusted EBITDA in the third quarter, consistent with our expectations. Our leaner cost structure and improved product margins supported our performance, resulting from our team's discipline and focus around streamlining operations and strengthening our bottom line. I'm incredibly proud of our consistent improvements in business performance over the last several quarters as we optimize our core business while also navigating a dynamic macro environment.

最後，我們第三季實現了正的調整後 EBITDA，符合我們的預期。我們更精簡的成本結構和更高的產品利潤率支撐了我們的業績，這得益於我們團隊在簡化營運和提高盈利能力方面的自律和專注。在過去的幾個季度裡，我們不斷優化核心業務，同時應對瞬息萬變的宏觀環境，公司業績也持續提升，我為此感到無比自豪。

We are keenly focused on addressing areas of our business that remain under pressure, namely our shoes and casual apparel businesses, which have continued to weigh on top-line performance. As we have discussed on prior calls, we are actively resetting our merchandising strategy in casual apparel and shoes to stabilize these categories and reposition them for growth. By reducing SKU count and pulling back on inventory receipts near term to improve turns while also leaning into more elevated dressier styles, we believe we are able to rebuild with a more focused and productive assortment that better aligns with consumer demand and margin goals.

我們正集中精力解決公司業務中仍面臨壓力的領域，特別是鞋類和休閒服飾業務，這些業務持續拖累公司的整體表現。正如我們在先前的電話會議中所討論的那樣，我們正在積極調整休閒服裝和鞋類的商品銷售策略，以穩定這些品類並重新定位它們以實現成長。透過減少 SKU 數量並減少近期庫存入庫，以提高週轉率，同時轉向更高端的正裝風格，我們相信能夠重建一個更專注和高效的產品組合，更好地滿足消費者需求和利潤目標。

As we work through inventory, we expect top line pressure from these categories to moderate towards the end of Q2 2026, allowing us to see more meaningful improvements in our revenue performance. To further support our realignment efforts, we made the strategic decision to optimize our team structure, including narrowing our team, eliminating the Chief Merchandising Officer role and streamlining our operations to leverage the success we have seen with our occasion wear buying.

隨著我們逐步清理庫存，我們預計到 2026 年第二季末，這些類別帶來的營收壓力將有所緩解，從而使我們的營收業績能夠得到更有意義的改善。為了進一步支持我們的重組工作，我們做出了優化團隊結構的策略決策，包括縮減團隊規模、取消首席商品官職位以及簡化運營，以充分利用我們在禮服採購方面取得的成功。

As we look ahead, we remain committed to evaluating all options to enhance performance and drive sustained, profitable long-term growth, focusing on process optimization and operational efficiency and positioning the brand as a key destination for special occasions and dressing up. Shifting to our cost reduction initiatives. We continue to reap the benefits of our cost-saving actions initiated last year. In the third quarter, OpEx declined 11% year-over-year. And within that, fixed costs were down 18%, enabling another quarter of positive adjusted EBITDA performance.

展望未來，我們將繼續致力於評估所有選項，以提高業績並推動持續、盈利的長期成長，重點關注流程優化和營運效率，並將品牌定位為特殊場合和盛裝打扮的關鍵目的地。轉向我們的成本削減計劃。我們繼續享受去年開始實施的成本節約措施帶來的益處。第三季度，營運支出較去年同期下降 11%。其中，固定成本下降了 18%，使得公司得以連續第二季實現調整後 EBITDA 為正。

We expect to continue to benefit from our leaner cost structure and the additional actions we're taking to drive operational efficiency, optimize performance and sustained profitability. More recently, in response to heightened macro uncertainty related to trade policy actions in the first half of the year, we took action to further promote cash generation and fortify our balance sheet through SKU rationalization.

我們期望繼續受益於更精簡的成本結構以及我們為提高營運效率、優化績效和實現持續獲利能力而採取的額外措施。最近，由於今年上半年貿易政策行動帶來的宏觀不確定性加劇，我們採取了行動，透過 SKU 合理化進一步促進現金流並強化資產負債表。

Our SKU rationalization initiative is bearing fruit with improved efficiencies and margins, reduced excess inventory and incremental cost savings through a more curated assortment. As it relates to direct sourcing, we are on track with our direct from factory approach for select mostly entry price point product category segments. In parallel, we are optimizing and diversifying our supply chain by reducing supply chain costs and close collaboration with our long-standing vendor partnerships.

我們的 SKU 合理化計畫正在取得成效，透過更精心挑選的產品組合，提高了效率和利潤率，減少了庫存積壓，並實現了成本節約。就直接採購而言，我們對部分入門級產品類別採用工廠直供的方式，目前進展順利。同時，我們正在透過降低供應鏈成本和與長期供應商合作夥伴密切合作，優化和多元化我們的供應鏈。

Furthermore, we are leveraging price strategy and assortment optimizations as incremental mitigation levers. On the home office front, I'm very excited to formally welcome Heidi Crane to our team as our fractional CFO. Heidi brings a wealth of experience leading financial strategy for high-growth consumer companies, which will be tremendously valuable to our team as we position for sustainable long-term profitable growth.

此外，我們正在利用價格策略和產品組合優化作為漸進式緩解措施。在家庭辦公室方面，我非常高興地正式歡迎 Heidi Crane 加入我們的團隊，擔任我們的兼職財務長。Heidi 在領導高成長消費品公司的財務策略方面擁有豐富的經驗，這對我們團隊實現可持續的長期獲利成長將非常有價值。

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 our strategic priorities. Mark?

接下來，我想把電話交給我們的總裁兼資訊長馬克‧沃斯。馬克將就我們在戰略重點方面取得的進展提供最新資訊。標記？

Thank you, Crystal. Our brand engagement initiatives continued to resonate, strengthening visibility and deepening awareness across key markets despite a decline in our active customer counts year-over-year. Our Love Rewards, loyalty program membership continues to grow steadily, contributing to higher reactivation rates amongst the lapsed customers. We also saw a meaningful uplift in average order value during the third quarter, which supported our strong comp performance for the period. With continued progress across key engagement metrics, we're optimistic about the impact of our strategic initiatives are having an accelerated brand momentum for Lulu's.

謝謝你，克麗絲塔爾。儘管我們的活躍客戶數量同比下降，但我們的品牌互動活動仍然產生了積極影響，提高了在主要市場的知名度和認知度。我們的「愛心獎勵」會員忠誠度計畫會員數量持續穩定成長，從而提高了流失客戶的重新啟動率。第三季平均訂單價值也出現了顯著成長，這支撐了我們該季度強勁的同店銷售業績。隨著關鍵參與度指標的持續進步，我們對策略性舉措對 Lulu's 品牌加速發展動能的影響持樂觀態度。

To that end, let me share more specifics around the progress we're seeing against our three strategic initiatives. Starting with our product assortment optimization and related margin expansion efforts. We delivered another quarter of sequential improvement in return rates and damages related to customer returns. The shift to a flat fee return policy in Q1 introduced to better align with industry standards has proven effective in enhancing the customer experience and preserving margins. We continue to monitor customer behavior and will adapt our policy to support the customer experience and the financial impact of returns.

為此，我想和大家分享我們在三項策略舉措方面取得的進展的具體情況。首先，我們將著手優化產品組合併擴大利潤空間。我們連續第二季在退貨率和客戶退貨相關損失方面實現了環比改善。第一季推出的統一退款政策旨在更好地與行業標準接軌，事實證明，該政策能夠有效提升客戶體驗並保持利潤率。我們將繼續關注客戶行為，並調整我們的政策，以改善客戶體驗並降低退貨帶來的財務影響。

Across event categories, we observed several positive trends that reinforce our confidence in our refined merchandising and product assortment strategy. In first-time reorder, our positive performance led by event gowns supports our ongoing reorder strategy of investing more into recently tested new products and retiring older reorder products.

在各個活動類別中，我們觀察到幾個正面的趨勢，這增強了我們對改進後的商品銷售和產品組合策略的信心。在首次補貨方面，活動禮服的良好表現支持了我們持續的補貨策略，即增加對近期測試過的新產品的投資，並淘汰舊的補貨產品。

In cocktail dresses, we saw progressive sales comp improvements throughout the quarter, supported by very strong top performers in both our new product and reorder product assortments, demonstrating the impact of our new merchandising strategy and assortment optimization initiatives. While our best-selling new assortments saw early sell-through, we are taking advantage of opportunities to increase depth in styles that are working, setting us up well for the year ahead. In our reorder programs, our disciplined and data-driven buying decisions allowed us to maintain stock levels throughout homecoming season, minimizing lost sales and allowing us to more effectively meet elevated demand.

在雞尾酒禮服方面，我們看到整個季度銷售額穩步提升，這得益於我們新產品和補貨產品系列中表現非常強勁的頂級產品，這證明了我們新的商品銷售策略和產品組合優化舉措的影響。雖然我們最暢銷的新產品系列很快就售罄，但我們正在抓住機會，增加暢銷款式的種類，為來年做好充分準備。在我們的補貨計劃中，我們嚴謹的、數據驅動的採購決策使我們能夠在整個返校季保持庫存水平，最大限度地減少銷售損失，並使我們能夠更有效地滿足不斷增長的需求。

Turning to our investments in strengthening brand awareness and customer engagement. In Q3, we launched our first fall brand campaign, The It List, supported by out-of-home placements, influencer activations and paid partnerships, maintaining our cultural relevance and organic reach. We continued to show up in culture through high-impact moments, such as our New York Fashion Week showroom, girls' night out events and ambassador-led initiatives, including ladies of the table and dime.

接下來談談我們在加強品牌知名度和客戶參與度方面的投資。第三季度，我們推出了首個秋季品牌推廣活動“The It List”，透過戶外廣告投放、網紅推廣和付費合作等方式，保持了我們的文化相關性和自然覆蓋範圍。我們透過一些具有重大影響力的時刻繼續在文化領域嶄露頭角，例如我們的紐約時裝週展廳、女孩之夜活動以及大使主導的活動，包括“餐桌上的女士”和“一角錢女士”。

These activations expanded our audience and strengthened earned media value. On social media and content performance, TikTok views increased 46% quarter-over-quarter with top-performing content such as try-ons and wedding guest halls, reaching millions.

這些活動擴大了我們的受眾群體，並增強了媒體曝光價值。在社群媒體和內容表現方面，TikTok 的觀看次數較上季成長了 46%，其中試穿和婚禮賓客大廳等表現最佳的內容觸達了數百萬人。

YouTube Shorts also saw a significant spike driven by paid amplification and a refined content strategy. Our ambassador program scaled meaningfully with year-over-year growth in creator count, reach and engagement. These programs continue to be a key driver of community expansion and brand resonance. Marketing and promotional efficiency also improved, supported by refined spend allocation and smarter execution across channels. Additionally, enhanced automation and more precise audience targeting contributed to positive engagement outcomes during the quarter.

YouTube Shorts 也因付費推廣和改進的內容策略而出現了顯著增長。隨著創作者數量、覆蓋範圍和參與度逐年增長，我們的品牌大使計畫也實現了顯著擴展。這些項目仍然是社群擴張和品牌影響力的重要驅動力。行銷和推廣效率也得到了提高，這得益於更精細的支出分配和更聰明的跨通路執行。此外，增強的自動化和更精準的受眾定位也為本季積極的互動效果做出了貢獻。

Looking ahead, we remain highly encouraged by the sustained strength of our brand and the effectiveness of our engagement strategies. The sequential gains in brand equity, coupled with strong performance across social and creator channels reinforce our confidence in the scalability of our approach. Our third initiative focuses on driving technology enablement to improve decisioning, efficiencies and create a seamless customer experience across channels.

展望未來，我們對品牌持續強勁的實力和有效的互動策略感到非常鼓舞。品牌資產的持續成長，加上在社群和創作者管道的強勁表現，增強了我們對自身方法可擴展性的信心。我們的第三項措施著重於推動技術賦能，以改善決策、提高效率，並在各個管道創造無縫的客戶體驗。

During the quarter, we revamped customer feedback collection via exit surveys, enabling us to capture more actionable quality signals and experience feedback from customers. Additionally, we made several user interface enhancements around returns and store credit options in the quarter to reduce friction and improve conversion rates while also improving Lulu's' data insights for various purchase journey decisions.

本季度，我們改進了客戶回饋收集方式，透過離店調查收集客戶回饋，從而能夠獲取更多可操作的品質訊號和客戶體驗回饋。此外，本季我們還對退貨和商店積分選項進行了多項用戶介面改進，以減少摩擦並提高轉換率，同時還提高了 Lulu's 對各種購買流程決策的數據洞察力。

In summary, we remain very focused on progress against our key strategic priorities, which we believe positions the business for a return to profitable, sustainable growth. And with that, I'll turn it over to Heidi, our fractional CFO, to provide more color on our financial performance.

總而言之，我們仍然非常專注於推進我們的關鍵策略重點，我們相信這將使公司恢復盈利、可持續的成長。接下來，我將把麥克風交給我們的兼職財務長海蒂，讓她更詳細地介紹一下我們的財務表現。

Thank you, Mark. I'm excited to join during this transformational time in Lulu's journey and contribute to its path to profitable growth. I've been incredibly impressed by the talent, engagement and hands-on culture here. The team's deep passion for the Lulu's brand was palpable from day 1. Over the next few months, I'll be focused on getting up to speed and deepening my knowledge of our operations, strategy and culture.

謝謝你，馬克。我很高興能在 Lulu 的轉型時期加入，並為它實現獲利成長做出貢獻。這裡的人才、敬業精神和務實精神給我留下了極其深刻的印象。從第一天起，團隊對 Lulu's 品牌的熱情就顯而易見。接下來的幾個月，我將專注於盡快熟悉並加深對我們公司營運、策略和文化的了解。

I'm looking forward to collaborating across the organization and engaging with the investment community as we continue driving Lulu's growth and value over the long-term. Now to our results. In the third quarter, net revenue was approximately $73.6 million, a decrease of 9% year-over-year, driven by a 14% decrease in total orders placed, partially offset by an 8% increase in average order value.

我期待與公司各部門合作，並與投資界互動，共同推動 Lulu 的長期成長和價值提升。現在公佈我們的結果。第三季淨收入約為 7,360 萬美元，年減 9%，主要原因是訂單總量下降 14%，但平均訂單價值成長 8% 部分抵銷了這一降幅。

Gross margin for the quarter was 42.6%, up 450 basis points year-over-year due to notable improvement in product-related margins driven from a higher mix of full price sales and higher-margin product categories in addition to further progress on direct sourcing initiatives, driving improved margins, specifically in our entry price point product assortment. On the expense side, Q3 selling and marketing expenses totaled $16.9 million, down about $0.7 million year-over-year, primarily due to lower marketing and merchant processing fees and lower revenues.

本季毛利率為 42.6%，年成長 450 個基點，這主要得益於產品相關利潤率的顯著提高，而這又得益於全價銷售和高利潤產品類別比例的提高，以及直接採購計劃的進一步推進，從而提高了利潤率，尤其是在我們的入門級價格產品系列中。在支出方面，第三季銷售和行銷費用總計 1,690 萬美元，年減約 70 萬美元，主要原因是行銷和商家處理費用降低以及收入下降。

General and administrative expenses decreased $3.5 million to $16.4 million in Q3, an 18% decline year-over-year, primarily due to a decrease in fixed labor costs driven by reduced headcount, lower variable labor costs and lower sales volume as well as lower equity-based compensation expense, reduced insurance costs and lower travel, supplies and other discretionary expenses, all the result of our ongoing cost control initiatives.

第三季一般及行政費用減少 350 萬美元至 1,640 萬美元，年減 18%，主要原因是員工人數減少導致固定勞動力成本下降、可變勞動力成本降低、銷售額下降，以及股權激勵費用、保險成本和差旅、用品及其他可自由支配費用減少，所有這些都是我們持續成本控制措施的結果。

Our net loss for Q3 improved to $2.3 million from a $6.9 million loss in the same period last year, driven primarily by a $0.7 million improvement in gross profit and a $4.2 million reduction in our operating expenses, slightly offset by a $0.3 million increase in net interest expense. Q3's adjusted EBITDA was approximately $0.4 million positive compared to a $3.6 million loss in Q3 2024, a $3.9 million improvement year-over-year for the third quarter. Adjusted EBITDA margin was positive 0.5% versus negative 4.4% in the prior year period. Interest expense in Q3 totaled $544,000 versus $305,000 in Q3 2024.

第三季淨虧損從去年同期的 690 萬美元減少至 230 萬美元，主要得益於毛利潤增加 70 萬美元以及營運費用減少 420 萬美元，但淨利息支出增加 30 萬美元略微抵消了這些增長。第三季調整後的 EBITDA 為正值約 40 萬美元，而 2024 年第三季虧損 360 萬美元，與去年同期相比，第三季改善了 390 萬美元。調整後的 EBITDA 利潤率為正 0.5%，而上年同期為負 4.4%。第三季利息支出總額為 544,000 美元，而 2024 年第三季利息支出總額為 305,000 美元。

Diluted loss per share for the quarter was $0.84 compared to a diluted loss per share of $2.47 in Q3 2024. In the third quarter, net cash used in operating activities was $1.8 million, a $3.7 million improvement from $5.5 million of cash used in the same period last year, primarily reflecting the improvement in our P&L.

本季稀釋後每股虧損為 0.84 美元，而 2024 年第三季稀釋後每股虧損為 2.47 美元。第三季度，經營活動使用的淨現金為 180 萬美元，比去年同期使用的 550 萬美元現金減少了 370 萬美元，這主要反映了我們損益表的改善。

Turning to the balance sheet and liquidity. In August, we announced a new credit agreement with White Oak Commercial Finance comprised of an asset-based revolving credit facility with a $20 million commitment, a $5 million uncommitted accordion and a $1 million sublimit for letters of credit with the facility maturing on August 14, 2028. The proceeds from the initial funding of the agreement were used to repay approximately $6 million outstanding under our prior credit agreement with Bank of America.

接下來看一下資產負債表和流動性。8 月，我們宣布與 White Oak Commercial Finance 達成一項新的信貸協議，其中包括一項以資產為基礎的循環信貸安排，承諾額度為 2000 萬美元，另有 500 萬美元的未承諾增額額度和 100 萬美元的信用證子限額，該信貸安排將於 2028 年 8 月 14 日到期。該協議的初始融資所得款項用於償還我們先前與美國銀行簽訂的信貸協議項下未償還的約 600 萬美元。

At the end of the quarter, we had $9.2 million in outstanding borrowings under the new facility with the facility's higher credit limit providing us with enhanced financial flexibility and a stronger liquidity position. Free cash flow during Q3 was negative $2.4 million, reflecting a $3.9 million improvement year-over-year. Year-to-date, Q3 free cash flow was $3.5 million compared to prior year Q3 year-to-date free cash flow of $2.7 million. Net debt was $7.3 million at the end of Q3, a $1.4 million reduction from our net debt position of $8.6 million at the end of the fourth quarter 2024. Our inventory balance at the end of the quarter was $38.4 million, $0.1 million or less than a 1% decrease year-over-year.

截至季末，我們在新融資安排下有 920 萬美元的未償還借款，該融資安排更高的信用額度為我們提供了更大的財務靈活性和更強的流動性。第三季自由現金流為負 240 萬美元，較上年同期改善 390 萬美元。今年迄今，第三季自由現金流為 350 萬美元，去年同期自由現金流為 270 萬美元。截至第三季末，淨債務為 730 萬美元，比 2024 年第四季末的淨債務 860 萬美元減少了 140 萬美元。本季末，我們的庫存餘額為 3,840 萬美元，比上年同期減少了 10 萬美元，降幅不到 1%。

Turning to our outlook for the remainder of the year. Similar to third quarter 2025, we expect significant year-over-year improvement in adjusted EBITDA in the fourth quarter of 2025. We also continue to expect full year capital expenditures to be approximately $2.5 million. Additionally, we remain focused on driving strong operational execution to support our progress towards profitable growth. As it relates to tariff and mitigation strategies, we are actively executing a multifaceted strategy that includes vendor collaboration, diversified sourcing, strategic pricing actions and optimizing our product assortment.

接下來展望今年剩餘時間的情況。與 2025 年第三季類似，我們預計 2025 年第四季調整後 EBITDA 將有顯著的年成長。我們也預計全年資本支出約為 250 萬美元。此外，我們將繼續專注於推動強有力的營運執行，以支持我們實現獲利成長。在關稅和緩解策略方面，我們正在積極執行一項多方面的策略，包括與供應商合作、多元化採購、策略定價措施以及優化產品組合。

These initiatives are being carefully managed and are already helping to offset our tariff-related costs. And now I'll turn it back to Crystal for closing remarks.

這些措施都經過精心管理，並且已經開始幫助我們抵消與關稅相關的成本。現在我把麥克風交給克莉絲塔爾，請她作總結發言。

All in all, I am proud of the clear progress we've made driving positive momentum across key areas of our business. We continue to demonstrate the impact of our strategic and cost-saving initiatives on optimizing our operations, driving a return to profitability and delivering a more aligned and curated occasion wear offering to our customers at an attractive price point.

總而言之，我對我們在推動業務關鍵領域的顯著進展感到自豪，這些進展帶來了積極的發展勢頭。我們不斷證明，我們的策略和成本節約舉措對優化營運、恢復盈利能力以及以有吸引力的價格為客戶提供更協調、更精心挑選的場合服裝產品產生了影響。

We remain firmly committed to maintaining positive year-to-date cash flow, protecting brand integrity and investing in our long-term objectives to support our return to growth. To our Lulu's team and partners around the world, thank you for your tireless effort, trust and passion for our brand. And thank you to our shareholders for your ongoing support.

我們將繼續堅定地致力於維持年初至今的正現金流，維護品牌誠信，並投資於我們的長期目標，以支持我們重返成長軌道。致 Lulu's 團隊及全球合作夥伴：感謝你們為我們品牌付出的不懈努力、信任和熱情。感謝各位股東一直以來的支持。

With that, I'll open it up for questions.

接下來，我將開放提問環節。

(Operator Instructions)

（操作說明）

Ladies and gentlemen, with no questions in the question queue, it brings us to the end of this event. Thank you for attending, and you may now disconnect your lines.

女士們、先生們，由於提問隊伍中已無任何問題，本次活動到此結束。謝謝各位的參與，現在可以斷開線路了。