Lulu's Fashion Lounge Holdings IPO: When can you buy LVLU stock? - Kalkine Media

November 08, 2021 07:31 AM PST | By Team Kalkine Media
Follow us on Google News:

Highlights

  • Lulu's is offering 5,750,000 shares of its common stock in the IPO
  • The stock price is expected to be between US$16.00 and US$19.00 apiece
  • The firm expects its revenue to be between US$104.5 million and US$106.3 million for the three months ended October 3, 2021

The customer-driven fashion brand for women, Lulu's Fashion Lounge Holdings, Inc., announced the launch of its proposed initial public offering on November 1. The company is expected to make its debut on the US market on November 11.

The online fashion firm is gaining attention from investors among a wave of IPOs this year, as consumers are expected to spend more in the coming months with the economic recovery on track. Consumers were forced to limit their spending during the pandemic, as the economy was crippled due to it. However, with positive economic data indicating that the economic recovery is gradually increasing its pace, investors are optimistic about consumer discretionary companies.

Also Read: Airbnb (ABNB) Q3 income up 280%, Square (SQ) misses estimates

Lulu's started its journey in 1996, with a vintage shop in a small town in northern California, while in 2005, it went online. It is now based out of Chico, California.

The company is led by David McCreight since April, who was earlier the CEO of Anthropologie Group of Urban Outfitters Inc. and before that, was the president of Under Armour Inc.

Also Read: Why are Penn National (PENN), Peloton Interactive (PTON) stocks diving?

Lulu’s Fashion Lounge is expected made its market debut on November 11

Also Read: 2 lithium stocks to watch with over 100% YTD returns as COP26 convenes

Share offerings and price-range expectations

The California-based firm is offering 5,750,000 shares of its common stock to investors, while the underwriters may purchase an additional 862,500 shares of its common stock from the company within 30 days, it said. The underwrites would buy the shares at the IPO price, less underwriting discounts and commissions.

The stock price of the initial public offering is currently anticipated to be between US$16 and US$19 per share. It is expected to start trading on Nasdaq Global Market under the ticker "LVLU".

Also Read: Datadog (DDOG) & UiPath (PATH) rally after quarterly reports

Lulu's products and financial details

In the first half of 2021, Lulu had around 236 new products launched each week, while its average unit retail prices were about US$50. It had 2.5 million active customers over the one year ended on October 3.

For the three months ended on October 3, 2021, the company expects its revenue to be between US$104.5 million and US$106.3 million, as compared to US$54.5 million in the quarter ended on September 27, 2020. It also projected its net income to be between US$3.3 million and US$3.9 million, as compared to US$0.4 million in the same period of the previous year.

Meanwhile, in the first half of 2021, the company's net revenue was US$172.54 million, as compared to US$139.59 million in the year-ago period.

Also Read: UBER’s gross bookings reach ATH in Q3 2021, Cloudflare revenue up 51%

Bottom line:

The joint lead book-running managers are Goldman Sachs & Co. LLC, Jefferies and BofA Securities, and Jefferies for the proposed offering. In addition, Baird, Cowen, Piper Sandler and KeyBanc Capital Markets, would act as book-running managers, while Telsey Advisory Group would act as co-manager for the proposed IPO.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies