By Dean Seal
Shares of Lulu’s Fashion Lounge Holdings Inc. fell 15.5% to $6.53 on Thursday after the company said it expects a narrower profit in the second quarter.
The women’s fashion brand released preliminary quarterly financial results forecasting net income to be between $5.6 million and $6.2 million, compared to $8.3 million during the same quarter last year.
The company expects net income to have risen between 26.5% and 27.5% to a range of $131 million to $132 million.
Chief Executive David McCreight said the company began to see volatility in traffic trends and conversion rates in May, with wider economic uncertainty affecting customer spending behavior and returns.
Higher-than-expected transportation costs related to higher fuel prices also put pressure on margins, he said.
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