Fast fashion brand Lulu filed for an IPO
The California-based company is profitable. In the three months ended Oct. 3, it generated net revenue of $104 million to $106 million and gross profit of about $50 million.
Lulu’s was founded in California in 1995 as a vintage boutique, but eventually transitioned to a digital-only business in 2008. Like many fast-fashion brands, it releases hundreds of new looks every week and operates on data-driven models to determine what to continue producing.
“Our product creation and management model brings hundreds of new products to market each week using a ‘test, learn and reorder’ strategy; We test them in small batches to understand customer needs and then quickly reorder larger volumes of winning products to optimize profitability, “the company wrote in its prospectus.
Find the next Shein
Investment firms like Andreessen Horowitz are backing startups that copy the Chinese fast-fashion giant’s blueprint as they look to build the next big gen Z brand.