Lulu’s Fashion Lounge Holdings Inc., an online retailer focused on women’s apparel, filed for an initial public offering, disclosing a turn to profitability during the coronavirus pandemic. The company in its filing Tuesday with the U.S. Securities and Exchange Commission listed the size of the offering as $100 million, a placeholder that will change when terms of the share sale are set. Backed by H.I.G. Capital, Lulu’s could have a value of $1 billion in an IPO, Bloomberg News reported in July. Lulu’s, based in Chico, California, was started by mother and daughter Debra Cannon and Colleen Winter in 1996.
The company, which doesn’t operate physical stores, has 2.5 million active customers and 7.5 million followers on social media, according to the filing. “Brick-and-mortar businesses, especially in the apparel, footwear, and accessories industry, were acutely challenged during the Covid-19 pandemic as they were generally considered “non-essential” by federal, state, and local authorities,” Lulu’s said. The company had a net income of about $7 million on net revenue of $173 million for the six months ended July 4, compared with a net loss of more than $15 million on revenue of $140 million for the comparable period a year earlier, according to the filing. The offering is being led by Goldman Sachs Group Inc., Bank of America Corp., and Jefferies Financial Group Inc. The company plans for its shares to trade on the Nasdaq Global Market under the symbol LVLU.