Lulu's Fashion Lounge rises on upbeat annual revenue forecast
01/04/2022 12:41
** Shares of online fashion brand for women LVLU.O rise
~20% to $8.11 premarket
** Stock on pace to open at highest level in over three
weeks if current gains hold
** LVLU after market hours on Thursday projected FY 2022
revenue above Wall Street estimates and reported
better-than-expected holiday-quarter results urn:newsml:reuters.com:*:nL3N2VY4HY
** Co says Q4 revenue surged 78%, adding it is seeing
increases in its customer satisfaction metrics
** Analysts at Jefferies cheer LVLU's solid quarter, saying
it is "just getting started"; brokerage hikes PT to $25 from $23
** "The Lulus brand is strong and getting stronger, new
customers are entering the platform at a solid pace, existing
customer retention is high," Jefferies notes
** With consumers shifting to e-commerce and LVLU's growth
still at early stage given its relatively low brand awareness,
runway for growth is significant at LVLU - Jefferies
** LVLU is rated "buy" on average among 7 brokerages on
Refinitiv, with a median PT of $18
** As of last close, stock was down ~58% from its Nov. IPO
price
(Reporting by Deborah Sophia in Bengaluru)
((DeborahMary.Sophia@thomsonreuters.com;))