Lulu’s Fashion Lounge Holdings, Inc. (NASDAQ:LVLU) Q3 2023 Earnings Call Transcript

Tiffany Smith: So we haven’t shared any expectation yet around 2024. In fact, we’re pretty heavily focused on internally building out our plans and framing the plans for next year. So we haven’t changed anything. I think what stays true for us next year is we’re continuing to lay the groundwork, make the necessary investments and adjustments that we’ve already started on this year to position us well going into next year. We’ve spoken about some investments that we’ve made with our product costing team, getting those folks hired in this year that we’ve spoken to in the past as being an opportunity for us to improve upon our product costing. But that’s going to be a multi-quarter, potentially multi-year effort for us. I don’t know if Mark, you have anything to elaborate there. But I think that’s an important lever that I think could have some effect for next year.

Mark Vos: Yes. So we were able to hire the team and we’re very excited with the talent that we have. We’re right now focused on — let’s call it, a low hanging fruit. And at the same time, we started working on some medium-term improvements that are going to layer on top of that. And obviously, we need to balance our needs of our buying model with the possibility of reducing those costs. I would say, from an effect that we’ll have we’ve already seen some positive impacts there. So we’re encouraged by that. And we’ll see how that’s — based upon what the extra margin potential that there is, what we — how we apply that. In some cases, we will apply that to be more price competitive, for example. So that would not immediately leads to a higher margin per se, but more margin dollars and in other cases, globally apply to expense the margin will make those decisions and trade-offs based upon what Lulu’s brand needs at that moment in time.

Operator: At this time, there are no further questions, and that concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.