Friedland Enterprises Files Amended Schedule 13D on Lulu's Fashion Lounge Holdings (LVLU), Publishes Independent FY2026 Financial Model

MIAMI BEACH, Fla., April 06, 2026 (GLOBE NEWSWIRE) -- Friedland Enterprises today announced the filing of an amended Schedule 13D (Amendment No. 1) with the Securities and Exchange Commission regarding its approximately 5% ownership stake in Lulu's Fashion Lounge Holdings, Inc. (NASDAQ:LVLU). The amendment updates the governance and strategic reform platform originally disclosed in January 2026 to reflect material progress by the Company and an evolution of the Reporting Person's investment thesis.

Governance Progress Acknowledged

Since the original 13D filing on January 9, 2026, LVLU management has taken several actions responsive to the Friedland Enterprises platform:

The Board approved a reduction of authorized common shares from 250 million to 15 million, pending shareholder approval at the upcoming annual meeting. Heidi Crane was appointed permanent Chief Financial Officer on February 4, 2026. The Company reported fourth quarter 2025 gross margin of 44.3% (up 640 basis points year over year) and three consecutive quarters of positive Adjusted EBITDA. Wholesale revenue grew approximately 143% year over year, with distribution expanding to all 93 Nordstrom full-line stores, 100 Dillard's doors, Amazon, and Victoria's Secret.

"Management deserves genuine credit for the operational progress," said Christian B. Friedland, Founder of Friedland Enterprises. "The margin improvement is real. The wholesale traction is real. The data-driven merchandising approach the company is building is the right strategic direction. What remains is the gap between operational execution and market recognition. I built my own FY2026 financial model because this company deserves an independent analysis that matches the quality of the turnaround it is executing."

Revised Six-Point Platform

The amended filing presents a revised shareholder reform platform reflecting the Reporting Person's updated views:

1. Data-Driven Merchandising: The original proposal to return Company founder Colleen Winter to an operational role has been withdrawn and replaced with an endorsement of the Company's algorithmic, technology-led merchandising strategy under President and CIO Mark Vos. The Reporting Person encourages additional disclosure regarding the Company's use of AI and machine learning in assortment optimization.

2. Performance-Based Equity Compensation: Management and director equity compensation should shift from restricted stock units to stock options with exercise prices tied to specific share price milestones, aligning incentives with shareholder value creation.

3. Investor Relations Activation: The constraint on investor outreach is not the current IR firm but rather a Board-level decision to defer engagement until the recovery is further advanced. With zero sell-side analyst coverage and daily trading volume of approximately 30,000 shares, the Reporting Person urges immediate activation of the existing IR plan.

4. Strategic Review of Alternatives: The Board should evaluate the full range of options available to shareholders. The Company operates a $280M+ revenue DTC platform with a fast-growing wholesale channel, 43%+ gross margins, and nearly 30 years of brand heritage at a current enterprise value of approximately $46 million.

5. Wholesale Segment Reporting (New): As wholesale approaches 10%+ of total revenue, the Company should report wholesale revenue, gross margins, and operating metrics as a distinct segment, consistent with the reporting practices of comparable company REVOLVE Group.

6. Tariff Exposure Disclosure (New): The Company should disclose sourcing concentration by country, quantify potential tariff margin impacts, and articulate specific mitigation strategies to allow investors to underwrite the margin expansion thesis.

The amended filing also formally withdraws the original board reconstitution proposal. Through direct engagement, the Reporting Person learned that director John Black retired from H.I.G. Growth Partners approximately six years ago and contributes valued M&A expertise, and that director Evan Karp does not receive cash compensation for his service.

Independent FY2026 Financial Model Published

In the absence of Company-provided financial guidance, Friedland Enterprises has published an independent bottom-up FY2026 revenue and Adjusted EBITDA model based entirely on public information. The three-scenario analysis projects: Bear case: $272M revenue (-4% YoY), ($2.5M) Adjusted EBITDA, approximately $21M wholesale revenue. Base case: $293M revenue (+4% YoY), $3.5M Adjusted EBITDA, approximately $29M wholesale revenue. Bull case: $320M revenue (+13% YoY), $11.0M Adjusted EBITDA, approximately $40M wholesale revenue.

At the current stock price of approximately $11.33, LVLU trades at 0.12x trailing price-to-sales. REVOLVE Group trades at approximately 1.3x. At just 0.3x P/S on base case revenue, the stock would reach approximately $30 per share.

The full shareholder analysis, including quarterly revenue estimates, wholesale partner breakdowns, valuation sensitivity matrices, and leading indicator analysis, is available at: https://www.friedlandenterprises.com/investments 

About Friedland Enterprises

Christian B. Friedland is the founder of Friedland Enterprises and the former CEO of Build.com, which he led for 17 years from inception through its exit to Ferguson Enterprises. He is a constructive activist investor focused on governance and strategic reform in undervalued public companies.

Disclosure

Christian B. Friedland, through Friedland Enterprises, is the beneficial owner of approximately 5% of LVLU common stock as disclosed in a Schedule 13D filed with the SEC. The foregoing is not investment advice. This press release contains forward-looking statements that involve risks and uncertainties. All financial estimates are the author's independent calculations based on publicly available information and have not been reviewed or endorsed by LVLU management. Past performance does not guarantee future results.

Contact:

Christian B. Friedland

Friedland Enterprises

350 Lincoln Road

Miami Beach, FL 33139

(530) 321-7277

[email protected]