The California-based company is profitable. It generated between $104 million and $106 million in net revenue and about $50 million in gross profit during the three months ending Oct. 3.

Lulu’s started off as a vintage boutique in California in 1995 but eventually transitioned to a purely digital business by 2008. Like many fast fashion brands, it releases hundreds of new styles weekly and operates on a data-driven model to determine what to keep producing.

”Our product creation and curation model leverage a ‘test, learn, and reorder’ strategy to bring hundreds of new products to market every week; we test them in small batches, learn about customer demand, and then quickly reorder winning products in higher volume to optimise profitability,” the company wrote in its prospectus.

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The Search for the Next Shein

Investment firms like Andreessen Horowitz are backing start-ups that mimic the Chinese fast-fashion giant’s blueprint, as they look to build the next big Gen Z label.