Lulu's plunges to record low on FY revenue forecast cut
16/11/2022 16:50
** Shares in fashion brand Lulu's Fashion Lounge Holdings
LVLU.O fall 28.4% to a record low of $4.50
** Co on Tuesday cut FY 2022 revenue forecast, citing
inflationary headwinds that weighed on consumer spending
** LVLU expects FY net revenue to be between $425 mln and
$440 mln vs previous forecast of $440 mln to $480 mln
** Co also reports a fall in Q3 revenue and net income
** "We witnessed inconsistent consumer behavior during the
quarter, characterized by volatile traffic trends and
conversion, which are most likely due to macro pressures that
are negatively impacting their desire to spend," says CEO David
McCreight on post-earnings call
** He adds that "we responded by increasing promotional
activity"
** Separately, LVLU also announces that current CFO Crystal
Landsem will replace McCreight as CEO, effective March 6, 2023
** Says McCreight will become executive chairman of board;
adds it plans to announce its new CFO in early 2023
** "This transition is the result of extensive internal
discussions, evaluation and planning to ensure a successful hand
off to the next generation of leadership," says CEO David
McCreight
** YTD, stock has fallen 49.4%
(Reporting by Granth Vanaik in Bengaluru)
((Granth.Vanaik@thomsonreuters.com;))