Lulu’s Fashion Lounge Holdings Inc. has filed for an initial public offering.
The filing comes after a period of rapid growth for the fast-fashion retailer. For the three-month period ending October 3, the company expects its revenue to be in the $104.5 million to $106.2 million range. In comparison, the company generated $54.5 million in revenue during the comparable period last year.
The company expects its profits to be in the $3.3 million and $3.9 million range for the current year, up from $377,000 a year ago. Lulu’s credits the growth to an increase in its profit margins but expects it to be partially offset by higher sales returns and marketing expenses.
The California-based retailer originally started out as a vintage boutique in 1995, but by 2008 the company turned around its business by launching an online store and taking a data-driven approach to understanding customer demand and launching hundreds of new styles.
“Unlike traditional retailers, we leverage a ‘test, learn, and reorder’ strategy to bring hundreds of new products to market every week,” said Lulu’s in its company filing. This approach helps the company sell “winning products in higher volume.”
“This strategy allows us to rapidly convert new products into profitable sales on a consistent and repeatable basis while minimizing fashion and trend risk,” continued Lulu’s.