Lulu's Fashion Lounge Holdings Inc (LVLU) 2026 Q1 法說會逐字稿

Good afternoon, and welcome to Lulu's Fashion Lounge first quarter 2026 earnings call. Today's call is being recorded.

下午好，歡迎參加 Lulu's Fashion Lounge 2026 會計年度第一季財報電話會議。今天的電話會議將被錄音。

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.

此刻，我想將會議交給 Lulu's 總法律顧問兼公司秘書 Naomi Beckman-Straus。謝謝。您可以開始了。

Good afternoon, everyone, and thank you for joining us to discuss Lulu's first quarter fiscal 2026 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 implementations.

各位下午好，感謝各位加入我們，一同討論 Lulu's 2026 會計年度第一季業績。在開始之前，我們提醒各位，本次電話會議將包含《1995 年私人證券訴訟改革法》所界定的前瞻性陳述。本次電話會議中所有不涉及歷史事實的陳述，均應視為前瞻性陳述，包括但不限於有關管理層的預期、計畫、策略、目標與宗旨及其執行的陳述。

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 28, 2025, 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、假設及其他重要因素影響，可能導致我們的實際結果、表現或成就與這些前瞻性陳述所明示或暗示者存在重大差異。上述風險、不確定性與假設已在今天下午的新聞稿以及我們向美國證券交易委員會（SEC）提交的文件中詳細說明，包括截至 2025 年 12 月 28 日止會計年度的 Form 10-K 年度報告；相關文件可於我們網站 investors.lulus.com 查閱。

During our call today, we reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, net debt, and free cash flow. 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 filing. We also use certain key operating metrics, including gross margin, average order value, and active customers. The description of these metrics can also be found in this afternoon's press release and in our SEC filing.

在今天的電話會議中，我們將引用若干非 GAAP 財務資訊，包括調整後 EBITDA、調整後 EBITDA 利潤率、淨負債與自由現金流。我們的非 GAAP 指標可能與其他公司使用的非 GAAP 指標不同。GAAP 與非 GAAP 指標之間的調節表，以及各項指標的說明、限制與使用理由，可見於今天下午的新聞稿及我們的 SEC 申報文件。我們也使用若干關鍵營運指標，包括毛利率、平均訂單金額與活躍客戶數。這些指標的說明亦可見於今天下午的新聞稿及我們的 SEC 申報文件。

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

今天與我一同參與電話會議的有：我們的執行長 Crystal Landsem、財務長 Heidi Crane，以及總裁兼資訊長 Mark Vos。在我們的準備發言結束後，將開放各位提問。

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

接下來，我把電話交給 Crystal。

Thank you, Naomi, and good afternoon, everyone. We appreciate you joining us today. In the first quarter, we continued to make meaningful progress across the business as we executed against the operational and merchandising initiatives supporting our reset. We exited 2025 and the first quarter of 2026 having completed much of the foundational reset work and are now positioning the business for recovery and reacceleration in the second half of the year. We believe the continued strength of our higher-margin event-driven categories, combined with our assortment optimization efforts, have improved order economics, deepened customer engagement, and further reinforced our position as a special occasion brand.

謝謝你，Naomi，各位下午好。感謝各位今天加入我們。第一季，我們在推進支援「重整」的營運與商品企劃各項措施方面，持續在全公司取得實質進展。我們在 2025 年底及 2026 年第一季完成了多數基礎性的重整工作，現正為下半年業務復甦與再加速做好布局。我們相信，高毛利的活動導向品類持續展現韌性，加上我們的商品組合最佳化努力，已改善訂單經濟性、加深客戶互動，並進一步鞏固我們作為「特殊場合」品牌的定位。

Lulu's remains a trusted destination for life's most meaningful moments, from graduations and weddings to birthdays, vacations, date nights, and the everyday social moments in between. These emotionally resonant purchase occasions continue to support strong customer engagement, repeat purchasing behavior, and full price demand across our core Gen Z and millennial customer base. What differentiates the Lulu's brand is our ability to combine elevated, feminine fashion with accessible price points while helping customers feel confident and photo ready for the moments that matter most.

Lulu's 仍是人生最重要時刻的可信賴首選，從畢業典禮、婚禮到生日、度假、約會之夜，以及其間各種日常社交時刻。這些能引發情感共鳴的購買情境，持續支撐強勁的客戶互動、重複購買行為，以及在我們核心的 Z 世代與千禧世代客群中的正價需求。Lulu's 品牌的差異化在於：我們能以親民的價格提供更具質感、女性化的時尚，同時幫助顧客在最重要的時刻感到自信、上鏡。

While we took targeted actions during the quarter to further optimize portions of our casual apparel and footwear assortments, we continue to see encouraging momentum across key areas of the business, including sustained strength in event-driven categories, significantly improved assortment productivity, expanding gross margins, and continued progress against our operational efficiency initiatives. To that end, let me share some additional detail on key positive developments during the first quarter of '26.

儘管本季我們針對休閒服飾與鞋類商品組合的部分領域採取了精準行動以進一步最佳化，但我們仍在業務的關鍵面向看到令人鼓舞的動能，包括活動導向品類的持續強勁、商品組合生產力顯著提升、毛利率擴張，以及營運效率計畫持續推進。基於此，讓我分享 2026 年第一季幾項關鍵的正向進展細節。

We continue to see healthy demand for special occasion, led by reorder cocktail dresses, and supported by color ads across occasion wear assortment, as well as chasing the high-performing, newly introduced styles. Additionally, sell-through for new product introductions improved significantly during the quarter, leading to reorder eligibility rates that nearly doubled year over year, highlighting the effectiveness of our more refined assortment strategy and identifying styles that better align with what the Lulu's customer is looking for gross margins expanded by 480 basis points to 45.1%, marking our highest first quarter gross margin percentage since 2022.

我們持續看到特殊場合需求維持健康，主要由可補貨的雞尾酒禮服帶動，並透過在場合服飾商品組合中投放色彩廣告，以及追補表現優異的新推出款式來支撐。此外，本季新品導入的售罄率顯著改善，使得可補貨資格比率幾乎較去年同期翻倍，凸顯我們更精煉的商品組合策略成效，並找出更符合 Lulu's 顧客需求的款式；毛利率擴張 480 個基點至 45.1%，創下自 2022 年以來第一季最高毛利率。

The continued expansion in gross margin reinforces that the structural improvements we have made across sourcing, assortment discipline, and inventory productivity are driving healthier order economics and improving the earnings profile of the business. We have seen great brand momentum to start the year, supported by growing engagement across experiential marketing, influencer partnerships, earned media and social channels, all while maintaining disciplined marketing efficiency.

毛利率的持續擴張再次印證，我們在採購、商品組合紀律與庫存生產力方面所做的結構性改善，正推動更健康的訂單經濟性並改善公司的獲利輪廓。今年開局我們看到品牌動能強勁，在體驗式行銷、網紅合作、口碑媒體與社群渠道的互動持續成長，同時仍維持嚴謹的行銷效率。

Our brand marketing strategy remains focused around culturally relevant moments that resonate with our customer, including weddings, graduations, prom, vacations, and other social occasions where customers turn to Lulu's with confidence. During the quarter, our 2026 prom event, creator collaborations, influencer and celebrity placements, and seasonal occasion dressing stories generated strong engagement and visibility across channels.

我們的品牌行銷策略仍聚焦於與顧客產生共鳴、具文化相關性的時刻，包括婚禮、畢業季、舞會、度假，以及其他顧客能自信地選擇 Lulu's 的社交場合。本季，我們的 2026 舞會活動、創作者合作、網紅與名人穿搭曝光，以及季節性場合穿搭主題故事，在各渠道帶來強勁互動與能見度。

We also announced our 2026 brand campaign in early April, which we anticipate will further drive awareness, positioning the business well to build momentum and scale as we celebrate moments that matter to our customers and that align with our brand identities. We also continue to benefit from the scale and authenticity of our community, which now includes more than 9 million social media followers and a broad network of influencers and ambassadors that help amplify the brand organically. Combined with the launch of our brand campaign, we believe these efforts further reinforce Lulu's attainable luxury positioning.

我們也在 4 月初宣布 2026 品牌行銷活動，我們預期這將進一步提升品牌知名度，使公司在慶祝對顧客重要、且與我們品牌識別一致的時刻時，能更好地累積動能並擴大規模。我們也持續受惠於社群的規模與真實性；目前社群媒體追蹤者已超過 900 萬，並擁有廣泛的網紅與品牌大使網絡，協助以自然方式放大品牌聲量。結合品牌行銷活動的推出，我們相信這些努力將進一步強化 Lulu's「可負擔的奢華」定位。

Our wholesale channel is scaling rapidly, with revenue in the quarter doubling year-over-year as it complements and amplifies our D2C business by meeting our customers where they already shop and increasing awareness of the Lulu's brand across new audiences and new channels. The in-store experience allows customers to engage directly with the quality, fit, and value of our products assortment, helping deepen trust and engagement with our brand.

我們的批發通路正快速擴張，本季營收較去年同期翻倍；該通路透過在顧客既有的購物場域觸達他們，並在新受眾與新渠道中提升 Lulu's 品牌知名度，進而補強並放大我們的 D2C 業務。門市體驗讓顧客能直接感受我們產品組合的品質、版型與價值，有助於加深對品牌的信任與互動。

We continue to view wholesale as a highly strategic and capital-efficient growth channel, expanding brand awareness and driving incremental customer acquisition. And last, adjusted EBITDA improved significantly year-over-year, highlighting our progress prioritizing profitability, maintaining a lean cost structure, and driving operational focus. Despite dipping negative in the first quarter, as anticipated, driven by our planned inventory reset, we expect to see a return to positive adjusted EBITDA in the second quarter and for the full year.

我們持續將批發視為高度策略性且資本效率高的成長通路，可擴大品牌知名度並帶來增量的客戶獲取。最後，調整後 EBITDA 較去年同期顯著改善，凸顯我們在優先提升獲利能力、維持精實成本結構與強化營運聚焦方面的進展。儘管第一季如預期轉為負值，主要受我們規劃中的庫存重整所致，但我們預期第二季以及全年調整後 EBITDA 將回到正值。

Importantly, during the first quarter, we made significant progress on the reset of our casual apparel and footwear businesses, as we discussed on our last call, while intentionally prioritizing profitability and assortment quality to support a faster and healthier return to growth. During the quarter, we intentionally maintained disciplined inventory receipts and a tighter, more curated assortment within casual apparel and footwear as we continued optimizing these categories around productivity, customer alignment, and profitability.

重要的是，第一季我們在休閒服飾與鞋類業務的重整方面取得顯著進展，正如我們在上次電話會議所討論；同時我們刻意優先考量獲利能力與商品組合品質，以支持更快且更健康地重返成長。本季，我們刻意維持嚴謹的進貨節奏，並在休閒服飾與鞋類維持更精選、更策展式的商品組合，同時持續圍繞生產力、客戶契合度與獲利能力來最佳化這些品類。

These actions contributed to a meaningfully cleaner inventory position exiting the quarter, and that positions us well to reintroduce higher quality, more productive newness through the balance of the year. We will continue to iterate on new products in the coming quarters, identify top performers, and build back reorder momentum behind the styles that resonate with customers most. Inventory at the end of Q1 was down meaningfully year over year, including a 39% reduction in casual apparel categories, nearly 46% reduction in footwear, while markdown exposure exiting the quarter was also substantially lower.

這些行動使我們在季末的庫存狀況明顯更為乾淨，並讓我們能在今年其餘期間重新導入品質更高、效率更佳的新品。未來幾季我們將持續迭代新品、辨識最佳表現款式，並針對最能引起顧客共鳴的款式重建補貨動能。第一季末庫存較去年同期大幅下降，其中休閒服飾品類減少 39%，鞋類減少近 46%；同時，季末的折扣曝險也顯著降低。

As expected, return rates increased year over year during the quarter, driven primarily by a greater mix of elevated occasion product and higher average unit retail. We expect return trends to improve as casual apparel and footwear assortments normalize through the back half of the year, positioning us for healthier revenue trajectory and improving return rates. We are encouraged by the progress we made in the first quarter, including improved margins, stronger inventory productivity, continued wholesale momentum, and meaningful balance sheet improvement.

如預期所見，本季退貨率較去年同期上升，主要受較高比例的高退貨風險場合商品組合，以及較高的平均單件零售價格所帶動。我們預期，隨著休閒服飾與鞋類的商品組合在今年下半年逐步回歸常態，退貨趨勢將有所改善，進而使我們的營收走勢更為健康，並帶動退貨率改善。我們對第一季所取得的進展感到鼓舞，包括毛利率改善、庫存生產力提升、批發動能持續，以及資產負債表的顯著改善。

We see opportunities to deepen engagement and grow revenue per customer by expanding further into wedding-related occasions and other event-adjacent categories that naturally extend the customer life cycle, increase purchase frequency, and support continuous engagement throughout the year. Most importantly, we remain deeply focused on serving our customers, strengthening the emotional connection they have with our brand, and continuing to deliver the confidence, quality, and experience they expect from Lulu's during life's most meaningful moments.

我們看到機會可透過進一步拓展婚禮相關場合及其他與活動相鄰的品類，來加深互動並提升每位客戶的營收貢獻；這些品類可自然延伸客戶生命週期、提高購買頻率，並支持全年持續互動。最重要的是，我們仍將重心放在服務客戶、強化他們與我們品牌之間的情感連結，並持續在生命中最重要的時刻，提供他們對 Lulu's 所期待的自信、品質與體驗。

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 focus areas. Mark?

接下來，我想把電話會議交給我們的總裁兼資訊長 Mark Vos。Mark 將就我們在策略重點領域所取得的進展提供最新資訊。Mark？

Thank you, Crystal. I'll start by sharing an update on our progress against our latest key strategic priorities, which center on the highest impact drivers of the business: one, improving order economics; two, expanding our wholesale channel; and three, leveraging technology to enhance engagement and operational efficiency. Starting with strengthening our casual apparel and footwear categories to drive improved order economics.

謝謝你，Crystal。我先分享我們在最新關鍵策略優先事項上的進展更新，這些優先事項聚焦於對業務影響最大的驅動因素：第一，改善訂單經濟性；第二，擴大我們的批發通路；第三，運用科技提升互動與營運效率。先從強化休閒服飾與鞋類品類，以帶動訂單經濟性改善開始。

Our casual apparel and footwear segments play a key role in broadening the Lulu's customer relationship beyond occasion-driven purchases, which tend to be more seasonal and episodic in nature. While occasion wear anchors our brand, casual apparel and footwear create opportunities for more consistent, everyday engagement, supporting higher purchase frequency and repeat behavior over time.

我們的休閒服飾與鞋類部門在將 Lulu's 的客戶關係從以場合驅動的購買行為延伸出去方面扮演關鍵角色；場合型購買通常更具季節性與間歇性。雖然場合服飾是我們品牌的核心，但休閒服飾與鞋類創造了更穩定、日常的互動機會，長期支持更高的購買頻率與重複購買行為。

These categories also deliver lower return rates, making them an important lever for improving overall order profitability and marketing efficiency as they scale. At the same time, we took more aggressive steps in late 2025 and into the first quarter to reset our casual apparel and footwear assortment. We limited new product introductions, focusing only on items with high conviction and strong alignment with our brand and customer. As a result, casual apparel and footwear new product launches were down more than 50% in the first quarter versus the prior year period, and the occasion wear mix subsequently increased. We expect this reset will translate into significantly improved performance through the remainder of the year.

這些品類也帶來較低的退貨率，因此在規模擴大時，將成為提升整體訂單獲利能力與行銷效率的重要槓桿。同時，我們在 2025 年底至第一季採取更積極的措施，重新調整休閒服飾與鞋類的商品組合。我們限制新品導入，只聚焦於我們高度看好、且與品牌與客群高度契合的商品。因此，第一季休閒服飾與鞋類新品上市數量較去年同期下降超過 50%，而場合服飾的占比隨之提高。我們預期這次調整將在今年剩餘期間轉化為顯著改善的表現。

SKU productivity in these categories has already strengthened meaningfully, with a 56% increase in units transacted per new product launched in Q1 2026 compared to Q1 2025 and up sequentially from 21% in Q4 2025. These signals reinforce our confidence that as we move into the back half of the year, casual apparel and footwear product launch volume will normalize and begin to return to growth. As casual apparel and footwear regain momentum in the second half of the year, supported by our focus on strategic, customer-aligned new buys, we expect their share of revenue to increase, providing a tailwind to return rate performance, overall order economics, and customer retention metrics.

這些品類的 SKU 生產力已明顯增強：2026 年第一季每個新品上市所帶動的成交件數，較 2025 年第一季增加 56%，且較 2025 年第四季的 21% 逐季提升。這些訊號強化了我們的信心：隨著進入今年下半年，休閒服飾與鞋類的新品上市量將回歸常態並開始恢復成長。當休閒服飾與鞋類在下半年重拾動能，並在我們聚焦策略性、貼近客戶的新採購支持下，我們預期其營收占比將提高，進而對退貨率表現、整體訂單經濟性與客戶留存指標形成順風。

Just as importantly, these categories support more frequent year-round purchasing behavior and play a critical role in both repeat purchases and new customer acquisition, further boosted by our efforts to improve the shopping experience across the website and strengthen our brand image. While new customer contribution from casual apparel and footwear has and will remain pressured in the first half of the year due to our targeted reset, we expect improvement and momentum to build in Q3 and Q4.

同樣重要的是，這些品類支持更頻繁的全年購買行為，並在重複購買與新客獲取方面扮演關鍵角色；此外，我們也透過改善網站購物體驗與強化品牌形象的努力，進一步推動其成效。雖然由於我們針對性的重整，休閒服飾與鞋類在上半年對新客的貢獻已且仍將承壓，但我們預期在第三季與第四季將出現改善並逐步累積動能。

As a reminder, Lulu's revenue model is not dependent on hitting the fashion trends as they develop in season that drives the majority of revenue. Instead, Lulu's revenue model is built on building longer-running assortments that make up the majority of our revenue. New assortment success, besides its revenue contribution in season, is mostly to test, learn, and adopt those winning styles into the future recurring revenue equation of the business.

提醒一下，Lulu's 的營收模式並不依賴於在當季追逐時尚趨勢的發展，而那通常是多數營收的主要來源。相反地，Lulu's 的營收模式建立在打造更長銷期的商品組合之上，這些商品構成我們大部分的營收。新品組合的成功，除了其在當季的營收貢獻外，主要目的在於測試、學習，並將勝出的款式納入公司未來的經常性營收方程式。

Consequently, just as we are currently experiencing the revenue pressures of past new assortment performance issues in casual apparel and footwear, conversely, the current successes with the significantly improved sell-through of new products launched, we believe, are strong indicators of future revenue contribution of those product cohorts. In other words, within the Lulu's revenue model, we are right now creating the product cohorts that we expect will drive revenue for multiple years to come.

因此，正如我們目前正承受過去休閒服飾與鞋類新品組合表現不佳所帶來的營收壓力；反過來看，我們認為目前新品上市後顯著改善的售罄率所帶來的成功，是這些產品批次未來營收貢獻的強力指標。換言之，在 Lulu's 的營收模式下，我們正在打造我們預期將在未來多年驅動營收的產品批次。

In summary, the performance improvements in casual apparel and footwear, combined with the continuing strength in occasion wear, gives us conviction in the revenue turnaround we're working towards. Additionally, the stronger performing casual apparel and footwear revenue contribution directly favors our overall return rates and lowers markdown sales, which should drive significant improvements in order economics and new customer acquisition.

總結來說，休閒服飾與鞋類的表現改善，加上場合服飾持續強勁，使我們對正在推動的營收反轉更具信心。此外，表現更佳的休閒服飾與鞋類營收貢獻，將直接有利於降低整體退貨率並減少折價銷售，進而推動訂單經濟性與新客獲取的顯著改善。

As a result, we believe our marketing efficiency will improve, our ability for customer reach will expand, and a positive revenue cycle will commence. From a phasing perspective, we expect more and better new assortment in Q3 and Q4 2026 to drive higher in-season revenue contribution, which would have a positive impact on overall return rate and new customer acquisition, such that we anticipate our total active customers to stabilize in the second half of this year. Starting in 2027, we expect the stronger product foundations and assortment productivity improvements established during 2026, increasingly support improved revenue trends, expanding profitability, and stronger adjusted EBITDA performance year-over-year.

因此，我們相信行銷效率將提升、觸及客戶的能力將擴大，並將啟動正向的營收循環。就時程節奏而言，我們預期 2026 年第三季與第四季將有更多且更好的新品組合，帶動更高的當季營收貢獻，並對整體退貨率與新客獲取產生正面影響，因此我們預期今年下半年總活躍客戶數將趨於穩定。自 2027 年起，我們預期 2026 年建立的更強產品基礎與商品組合生產力改善，將日益支持更佳的營收趨勢、獲利能力擴張，以及調整後 EBITDA 年對年更強的表現。

We're very excited about our current momentum and are looking forward to keeping you apprised of our progress. Turning to wholesale expansion. Our wholesale expansion continues, and I'm happy to report the following statistics. As of 2025 Q1 last 12 months, we shipped to four major accounts, and by 2026 Q1 last 12 months, that expanded to 10 major accounts. In 2026 Q1 last 12 months, our overall wholesale revenue increased by 112%, and our same majors account revenue was up 94% compared to 2025 Q1 last 12 months.

我們對目前的動能感到非常振奮，也期待持續向各位更新我們的進展。接著談批發擴張。我們的批發擴張持續推進，我很高興報告以下數據。以 2025 年第一季過去 12 個月計算，我們出貨給四個主要客戶；而以 2026 年第一季過去 12 個月計算，已擴大至 10 個主要客戶。以 2026 年第一季過去 12 個月計算，我們整體批發營收成長 112%，而相同主要客戶的營收較 2025 年第一季過去 12 個月成長 94%。

As we have previously announced, Lulu's is now available in all Nordstrom doors, and we also doubled our presence to 100 doors with our prom assortment at Dillard's. The continued growth of our wholesale channel is validation that the Lulu's brand resonates with our customers who are also shopping in-store. Finally, let me walk you through how we're leveraging technology to drive engagement and efficiency. Let me start with an update on our cost reduction initiatives. In the first quarter, we saw a 13% year over year decline in operating expenses, including an 8% reduction in fixed costs.

如我們先前所宣布，Lulu's 現已進駐 Nordstrom 全部門市據點（doors），同時我們也在 Dillard's 以舞會（prom）商品組合將據點數加倍至 100 家門市。批發通路的持續成長，驗證了 Lulu's 品牌也能與同時在實體店購物的客群產生共鳴。最後，我來說明我們如何運用科技來推動互動與效率。我先從成本削減計畫的最新進展談起。第一季我們的營業費用年對年下降 13%，其中固定成本降低 8%。

One great example of how we achieve this is through our distribution center efficiency gains, which include increased efficiencies in inbound and returns processing, lower refurbishment costs, and improvements in our click-to-ship time and on-time delivery. These major performance improvements have supported our cost efforts, thanks to the great work of our operations teams who deeply deserve kudos.

我們達成這點的一個很好的例子，是透過配送中心效率提升，包括進貨與退貨處理效率提高、整新成本降低，以及從點擊到出貨時間與準時交付的改善。在營運團隊出色的工作下，這些重大的績效改善支持了我們的成本努力，他們確實值得高度肯定。

On tariffs, uncertainty around rates, refunds, and timing is ongoing. As we discussed previously, we successfully managed incremental tariff impacts through a combination of vendor collaboration, strategic pricing, and assortment optimization. And as a result, we are not expecting large swings due to the potential refunds, which have not been factored into guidance to date.

關於關稅，稅率、退稅與時點的不確定性仍在持續。如我們先前所討論，我們已透過供應商協作、策略性定價與商品組合最佳化的組合，成功管理新增的關稅影響。因此，對於潛在退稅所造成的大幅波動，我們並不預期會出現；截至目前，相關退稅也尚未納入財測指引。

We continue to monitor market developments while progressing our sourcing diversification efforts, deepening strategic vendor relationships, managing product costs, and maintaining disciplined pricing and assortment strategy. We also remain mindful that ongoing freight cost variability and a value-conscious consumer may contribute to uneven demand patterns.

我們將持續監控市場動態，同時推進採購來源多元化、深化策略性供應商關係、管理產品成本，並維持嚴謹的定價與商品組合策略。我們也持續留意，運費成本的持續波動以及重視性價比的消費者，可能導致需求型態不均。

However, our approach is centered on staying agile, protecting margins, and making measured adjustments as conditions evolve. We believe these actions enable us to navigate near-term volatility while continuing to reinforce a stronger and more resilient long-term margin profile. To that end, I'm happy to announce that our customers are now enjoying the benefits of having the option to return items via Happy Returns, without the need for shipping materials or printing label hassles.

然而，我們的方法核心在於保持敏捷、保護利潤率，並隨著情勢演變進行審慎調整。我們相信，這些行動使我們能在持續強化更強健、更具韌性的長期利潤率結構的同時，因應短期波動。為此，我很高興宣布，我們的客戶現在可享有透過 Happy Returns 退貨的選項所帶來的便利，無需包裝寄送材料，也不必為列印退貨標籤而煩惱。

Our customers are adopting Happy Returns at high rates and are clearly appreciative of this service. Furthermore, the consolidated return shipping to our distribution centers will help offset the mentioned increases in fuel surcharges. A shout-out to the Happy Returns and Lulu's teams who, in a relatively short period of time, made this integration a reality with a smooth go-live and rollout.

我們的客戶以很高的比例採用 Happy Returns，並且顯然很感謝這項服務。此外，將退貨運輸整合後集中運送至我們的配送中心，將有助於抵銷前述燃油附加費的上升。也特別感謝 Happy Returns 與 Lulu's 團隊，他們在相對短的時間內，讓這項整合順利上線並推廣落地。

Lastly, we're also very happy about our updated complete-the-look functionality, which our customers love, where we've not only revamped how we algorithmically merchandise various looks, but we've also made the shopping experience smoother and add-to-cart easier. As our casual apparel and footwear assortments evolve and improve, we see this as an opportunity to further expand order economics and increase customer lifetime value.

最後，我們也對更新後的「完整穿搭（complete-the-look）」功能感到非常滿意，客戶也很喜歡；我們不僅重新改造了以演算法呈現各種造型的商品配置方式，也讓購物體驗更順暢、加入購物車更容易。隨著我們的休閒服飾與鞋類品項持續演進與改善，我們視此為進一步擴大訂單經濟效益並提升客戶終身價值的機會。

Taken together, these strategic focus areas reflect our deliberate and targeted approach to accelerating our path to growth in the year ahead. By repositioning and reaccelerating our underperforming but strategically important categories, expanding our brand presence through wholesale, managing our costs, and removing friction across the customer journey through targeted technology investments, we are strengthening our operational performance while reinforcing the long-term durability of our business model.

綜合而言，這些策略重點領域反映了我們在加速明年成長路徑上的審慎且聚焦的做法。透過重新定位並重新加速表現不佳但具策略重要性的品類、以批發拓展品牌能見度、管理成本，以及透過有針對性的科技投資移除客戶旅程中的摩擦，我們在強化營運表現的同時，也進一步鞏固商業模式的長期韌性。

I'll now pass it over to Heidi Crane, Lulu's Chief Financial Officer, to provide more color on our financial performance.

接下來我將把時間交給 Lulu's 財務長 Heidi Crane，為我們的財務表現提供更多說明。

Thank you, Mark. In the first quarter, net revenue was $57.5 million, a decrease of 10% year over year, driven by a 15% decrease in total orders placed and the impact of higher return rates, partially offset by a 4% increase in average order value and an increase in wholesale revenue. Gross margin for the quarter was 45.1%, up 480 basis points year over year due to a shift in the sales mix to higher-margin categories as well as improved outbound shipping costs due to freight rate savings, partially offset by increased markdowns in casual apparel and footwear.

謝謝你，Mark。第一季淨營收為 5,750 萬美元，年減 10%，主要受總下單數量年減 15%以及較高退貨率的影響，但部分被平均訂單金額年增 4%以及批發營收增加所抵銷。本季毛利率為 45.1%，年增 480 個基點，主要因銷售組合轉向毛利較高的品類，以及因運費費率節省而使出貨運輸成本改善；但部分被休閒服飾與鞋類折扣加大所抵銷。

On the expense side, selling and marketing expenses in the first quarter totaled $14 million, down $1.9 million year over year due to lower marketing costs and merchant processing fees. General and administrative expenses decreased $2.6 million to $15.5 million in Q1, a 14.3% decline year over year, primarily due to ongoing cost control initiatives, including a decrease in variable labor and benefits associated with lower sales volume and enhanced productivity realized from our distribution center consolidation efforts, a decrease in equity-based compensation expense, and a decrease in fixed labor and benefit costs due to a reduction in fixed head count.

在費用方面，第一季銷售與行銷費用合計 1,400 萬美元，年減 190 萬美元，主要因行銷成本與商戶處理費（merchant processing fees）降低。一般及行政費用在第一季下降 260 萬美元至 1,550 萬美元，年減 14.3%，主要因持續的成本控管措施，包括：因銷售量下降而使變動人力與福利成本降低、因配送中心整併帶來的生產力提升、股權基礎薪酬費用下降，以及因固定人力編制縮減而使固定人力與福利成本下降。

Our net loss for the first quarter improved to $4.1 million from an $8 million loss in the same period last year. Adjusted EBITDA in Q1 was a loss of $1.5 million compared to a $4.7 million loss in Q1 2025, a $3.1 million improvement year over year. Adjusted EBITDA margin was negative 2.7% versus negative 7.3% in the prior year period. Interest expense in Q1 totaled $394,000 versus $577,000 in Q1 2025. Diluted loss per share for the quarter was $1.44 compared to a diluted loss per share of $2.86 in Q1 2025.

第一季淨損改善至 410 萬美元，去年同期為淨損 800 萬美元。第一季調整後 EBITDA 為虧損 150 萬美元，相較 2025 年第一季虧損 470 萬美元，年增改善 310 萬美元。調整後 EBITDA 利潤率為負 2.7%，相較去年同期為負 7.3%。第一季利息費用合計 39.4 萬美元，相較 2025 年第一季為 57.7 萬美元。本季稀釋後每股虧損為 1.44 美元，相較 2025 年第一季稀釋後每股虧損 2.86 美元。

For the first quarter, net cash provided by operating activities was $6.9 million compared to $8.3 million in the same period last year, with the year over year variance negatively impacted by $2.2 million related to a large prior year income tax refund. Year over year, net cash provided by operating activities, excluding income tax refunds, improved by $800,000 in the first quarter.

第一季營業活動提供之淨現金為 690 萬美元，去年同期為 830 萬美元；年對年差異主要受到去年一筆較大所得稅退稅 220 萬美元的負面影響。年對年而言，若排除所得稅退稅，第一季營業活動提供之淨現金改善 80 萬美元。

Free cash flow in the first quarter was $6.5 million compared to free cash flow of $7.8 million in the same period last year. Total debt decreased by $1.1 million to $13.3 million, and net debt decreased by $5.8 million to $5.9 million during the first quarter. Our inventory balance at quarter end was $33.1 million, a decrease of $6.6 million, or 17% year over year.

第一季自由現金流為 650 萬美元，去年同期自由現金流為 780 萬美元。總負債減少 110 萬美元至 1,330 萬美元，而第一季期間淨負債減少 580 萬美元至 590 萬美元。季末存貨餘額為 3,310 萬美元，年減 660 萬美元，或年減 17%。

We remain focused on strengthening the foundation of our business, prioritizing higher quality demand, and disciplined order economics. We also continue to realign our casual apparel and footwear assortment to better meet customer demand and margin optimization. We are taking targeted actions to work through the remaining slower-moving inventory and reposition our assortment and prioritizing ongoing cost optimizations. With that in mind, we feel confident in the positive momentum we are seeing year-over-year with our disciplined execution, which positions us well as we prepare for the upcoming peak selling periods. As such, we expect positive adjusted EBITDA in the second quarter of 2026 to outperform results for the same period of last year.

我們仍專注於強化業務基礎，優先追求更高品質的需求，並維持嚴謹的訂單經濟效益管理。我們也持續重新調整休閒服飾與鞋類的商品組合，以更好地符合客戶需求並優化利潤率。我們正採取有針對性的行動，以消化剩餘的較慢周轉存貨並重新定位商品組合，同時優先推動持續的成本優化。基於此，我們對在嚴謹執行下所看到的年對年正向動能充滿信心，這也使我們在準備即將到來的銷售旺季時具備良好定位。因此，我們預期 2026 年第二季調整後 EBITDA 將轉為正值，並優於去年同期表現。

We remain focused on improving profitability and strengthening our financial position with improvements to our balance sheet and cash generation. For the full year of fiscal 2026, we continue to expect adjusted EBITDA to inflect to positive compared to negative $1.2 million in 2025, and the net revenue growth trend to improve year over year compared to a decrease of 11% in 2025. We also continue to expect capital expenditures to be between $2.0 million and $2.5 million, inclusive of capitalized software, which is comparable to 2025.

我們仍專注於提升獲利能力，並透過改善資產負債表與現金創造能力來強化財務體質。就 2026 財政年度全年而言，我們仍預期調整後 EBITDA 將由 2025 年的負 120 萬美元轉為正值，且淨營收成長趨勢將較 2025 年年減 11%有所改善。我們也仍預期資本支出介於 200 萬至 250 萬美元之間（包含資本化軟體），與 2025 年相當。

And now, I'll turn it back over to Crystal for closing remarks.

現在，我將把時間交回給 Crystal 作結語。

Thank you, Heidi. Overall, we are encouraged by the progress and momentum we saw in the first quarter as we execute against our strategic priorities and continue strengthening the foundation of the business. While there is still important work ahead as we optimize portions of the assortment through the balance of the year, we believe the actions we have taken are creating a structurally stronger business, improving operational discipline, enhancing customer alignment, and positioning Lulu's for more sustainable, profitable, long-term growth.

謝謝你，Heidi。整體而言，隨著我們依照策略優先事項推進並持續強化業務基礎，我們對第一季所見的進展與動能感到鼓舞。儘管在今年剩餘期間，我們仍有重要工作要做，以優化部分商品組合，但我們相信已採取的行動正在打造結構上更強健的企業、提升營運紀律、加強與客戶需求的一致性，並使 Lulu's 更有利於實現更可持續、更具獲利性的長期成長。

We remain excited about the opportunities ahead, including expanding our presence across wedding-related occasions and event-adjacent categories, deepening customer engagement with the Lulu's brand, and continuing to scale wholesale as both a growth driver and a customer acquisition engine. Most importantly, none of this would be possible without the passion, resilience, and commitment of our team.

我們對未來的機會仍感到振奮，包括擴大我們在婚禮相關場合與鄰近活動類別的布局、深化客戶對 Lulu's 品牌的互動參與，以及持續擴大批發規模，使其同時成為成長動能與客戶獲取引擎。最重要的是，若沒有我們團隊的熱情、韌性與投入，這一切都不可能實現。

I want to sincerely thank the entire Lulu's organization for their hard work, their dedication, and also thank our shareholders for their continued support and confidence in our long-term vision.

我想由衷感謝整個 Lulu's 組織的辛勤付出與奉獻，也感謝股東們持續的支持，以及對我們長期願景的信心。

This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation.

今天的電話會議到此結束。您現在可以掛斷電話線，並感謝您的參與。