- 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.
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.
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".
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.
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.