Lulu’s Fashion Lounge to Consolidate Distribution Centers in 2025

Lulu’s Fashion Lounge Holdings, Inc. (NASDAQ:LVLU) made a significant announcement on December 5, 2024, regarding the consolidation of its distribution centers planned for 2025. The company intends to close its current distribution center in Chico, California and transition its operations to the consolidation center located in Ontario, California. Once finalized, the Ontario facility will act as a combined consolidation and distribution center.

This strategic decision by Lulu’s Fashion Lounge is part of their operational efficiency improvement plan, aimed at reducing costs and streamlining processes. As a result of this consolidation, the company anticipates the elimination of approximately 83 positions, with the process projected to be largely completed by the conclusion of the first fiscal quarter of 2025. Lulu’s has put in place a transition strategy to minimize disruptions to its business operations and customers during this period.

The company has estimated that it will incur exit costs ranging between $0.5 million to $1.0 million in relation to the closure and consolidation process. These expenses are expected to occur between the fourth fiscal quarter of 2024 and the first quarter of 2025. Primarily, these costs will be non-cash charges linked to the accelerated amortization of a right-of-use asset for the leased distribution center and the accelerated depreciation of fixed assets situated in the distribution center.

Crystal Landsem, the Chief Executive Officer of Lulu’s Fashion Lounge, signed off on the report. The company aims to complete this transition smoothly, reflecting its commitment to operational efficiency and strategic cost management.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lulu’s Fashion Lounge’s 8K filing here.

Lulu’s Fashion Lounge Company Profile

Lulu's Fashion Lounge Holdings, Inc operates as an online retailer of women's apparel, footwear, and accessories. The company offers formals, casuals, dresses, tops, bottoms, wedding dresses, rompers and jumpsits, intimates and sleepwear, swimwear, shoes, and accessories under the Lulus brand.