Dive Brief:

• Lulus has partnered with Levi’s to launch a collection dubbed Lulus Loves: Levi’s, which will offer Lulus shoppers a selection of Levi’s products. The collection includes jackets, jeans, cutoff shorts and jumpsuits that Lulus will be selling on Lulus’ website and at its store in Los Angeles, according to a Monday press release.

• The partnership with the iconic denim brand fits within Lulus’ broader strategy of bringing in collections from brands that align with its core customers, according to the company.

• Lulus will host a denim customization event at its Melrose Avenue store in Los Angeles on Saturday, with the Levi’s Tailor Shop on site. Lulus customers can receive free chain stitch embroidery services with the purchase of Levi’s apparel.

Dive Insight:

Lulus and Levi’s are partnering as both brands focus on growing DTC sales and reverse financial losses. Each is recalibrating and finding ways to streamline operations and become more efficient.

For Lulus, the capsule is part of a curation strategy to broaden the brand’s appeal. 

“At Lulus, our goal is to be a one-stop-shop for all of life’s most important moments — and there is nothing better than donning a Levi’s classic style to an event, date night or anything in-between,” Laura Deady, chief merchandising officer for Lulus, said in a statement. “Through the all-new Lulus Loves: Levi’s capsule, we’re able to highlight the essential role denim plays in a woman’s wardrobe, as well as how it serves as the perfect fashion statement for any occasion.”

Last week, Lulus parent company Lulu’s Fashion Lounge Holdings, reported financial results for the first quarter. Lulus’ Q1 net revenue decreased 15% to $77.3 million, from $91 million in the same period last year, according to the Q1 earnings press release. The decrease was largely driven by a 17% decline in orders and higher return rates. Gross margin in Q1 was 42.3%, an increase of 60 basis points. Markdown sales declined 18% during the quarter compared to a year ago, leading to both the overall net revenue decline and gross margin improvement, according to the release.

Lulus CEO Crystal Landsem said in the earnings press release that the company was focused on operational efficiency, innovation and product offerings.

Last November, Lulus opened a retail store in Los Angeles, its only physical store. The brand debuted its first store in 1996 but shifted to a digital distribution model in 2008.