Lulu's Fashion Lounge Holdings, Inc. Segments Disclosure
12.Segment Reporting
The Company identifies operating segments based on whether the Company’s Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), regularly reviews operating results of particular components of the Company’s activities and allocates resources and assesses performance based on those results. The Company has one reportable segment related to the sale of merchandise directly to end customers. Sales to wholesale customers are less than 10% of total revenue and therefore do not require separate disclosure as a reportable segment. All long-lived assets are located in the U.S. and substantially all revenue is attributable to customers based in the U.S. International sales are not significant.
The accounting policies of the one reportable segment are the same as those described in the summary of significant accounting policies. The measurement of segment assets is reported on the consolidated balance sheet as total consolidated assets. All assets, liabilities, cash flows, revenue and expenses are reported in the Company’s one reportable segment. When evaluating the Company’s financial performance and making strategic decisions, the CODM focuses their review of expenses incurred by the nature of those expenses.
The table below is a summary of the segment profit or loss, including significant segment expenses (in thousands):
Fiscal Years Ended | |||||||||
December 28, | | December 29, | December 31, | ||||||
2025 | 2024 | 2023 | |||||||
(52 weeks) | (52 weeks) | (52 weeks) | |||||||
Net revenue | $ | 282,284 | $ | 315,887 | $ | 355,175 | |||
Less: | |||||||||
Cost of revenue | 160,230 | 185,639 | 206,949 | ||||||
Employee expenses (excluding equity-based compensation expense) | 46,137 | 53,056 | 53,791 | ||||||
Equity-based compensation expense | 4,481 | 8,090 | 17,694 | ||||||
Advertising expenses | 50,406 | 55,408 | 58,481 | ||||||
Goodwill impairment | — | 28,374 | — | ||||||
Other net costs (1) | 29,571 | 34,257 | 35,264 | ||||||
Depreciation and amortization (2) | 2,520 | 2,745 | 2,278 | ||||||
Interest expense | 2,464 | 1,271 | 1,728 | ||||||
Income tax provision (benefit) | 188 | 2,333 | (1,676) | ||||||
Segment net loss | $ | (13,713) | $ | (55,286) | $ | (19,334) | |||
| (1) | Other net costs include professional services fees, other selling costs, other general and administrative costs, technology and software costs, facilities costs, interest income, non-operating income and expenses, and other immaterial expenses that do not align with the separately presented expense categories. |
| (2) | Excludes depreciation expense related to distribution facilities recorded in cost of revenue. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.