Overview, company details, product information, news, events, rankings and Rep listings for LuLaRoe.
LuLaRoe is a California-based fashion network marketing company founded by DeAnne and Mark Stidham. DeAnne Stidham began selling women's skirts through home parties before she and her husband developed the concept into LuLaRoe, which was formally established in 2013. The company was named for three of DeAnne's grandchildrenââ'¬"Lucy, Lola and Monroeââ'¬"and grew rapidly through a combination of home-based selling and social media. LuLaRoe is headquartered in Corona, California.
LuLaRoe sells women's, men's and children's apparel, although it became best known for brightly patterned women's leggings. Its catalog has included dresses, skirts, tops, cardigans, denim, athletic wear and children's clothing. Independent sellers, now called Independent Fashion Retailers, purchase clothing wholesale from LuLaRoe and resell it through pop-up boutiques, live social-media sales and other direct-to-consumer channels. The company's practice of producing limited quantities of individual prints helped create a secondary "unicorn" market in which customers searched different retailers for particular patterns.
LuLaRoe became one of the fastest-growing direct-selling companies in the United States. Reported sales reached approximately $1 billion in 2016, and the company had more than 77,000 independent retailers by early 2017. By later that year, LuLaRoe reported more than 80,000 retailers and more than $2 billion in apparel sales. Much of its growth was driven through Facebook groups, Facebook Live presentations and other social-media sales channels rather than traditional retail stores.
LuLaRoe operates as a multilevel marketing company. Retailers earn the difference between their wholesale inventory cost and the price at which they sell merchandise to customers, while qualifying retailers can also participate in the company's Leadership Compensation Plan. Historically, leadership bonuses were tied in part to wholesale inventory purchases generated within a retailer's organization. Following regulatory action in Washington, LuLaRoe was required to calculate bonuses based on actual retail sales rather than merchandise purchased by independent retailers. The current opportunity has a substantially lower entry cost than the thousands of dollars commonly required during the company's rapid-growth period. As of 2026, the minimum Retailer Business Starter Pack costs $499 and contains 33 pieces of clothing.
LuLaRoe's 2024 Income Disclosure Statement reported an average annual gross profit of $11,914.53 among retailers who processed at least one transaction during the year, while the median was substantially lower at $1,045.55. These figures include retail activity and, where applicable, leadership compensation but do not deduct expenses such as shipping, advertising, equipment, travel, insurance and professional services. Only 9.63% of retailers received Leadership Compensation Plan payments in 2024. Among those participants, average leadership compensation was $10,573.16 and median leadership compensation was $875.53. The other 90.37% received their gross profit entirely through clothing sales rather than leadership compensation.
LuLaRoe faced substantial controversy during its rapid expansion. In 2017, customers filed litigation alleging that some of the company's leggings developed holes and tears unusually quickly. LuLaRoe responded with a product warranty and its "Make Good" program for qualifying merchandise purchased between January 1, 2016 and April 24, 2017. The company also faced lawsuits from former retailers involving inventory purchases, its merchandise buyback policy and allegations that participants had been encouraged to invest heavily in inventory based on representations about the potential profitability of the business. LuLaRoe disputed allegations that its business was an illegal pyramid scheme.
The most significant government enforcement action came from the Washington State Attorney General, which sued LuLaRoe, Mark Stidham, DeAnne Stidham and other company executives in January 2019. The state alleged that LuLaRoe violated Washington's Antipyramid Promotional Scheme Act and Consumer Protection Act by misrepresenting potential retailer profitability, operating an unlawful bonus structure and maintaining an unfair refund policy. In February 2021, LuLaRoe agreed to pay $4.75 million to resolve the case, with $4 million allocated to restitution for approximately 3,000 Washington retailers and $750,000 allocated toward the state's investigation and litigation expenses.
Under the Washington resolution, LuLaRoe was prohibited from operating a pyramid promotional scheme and required to publish accurate income disclosures, base leadership bonuses on retail sales rather than retailer inventory purchases, and conduct audits designed to verify that qualifying sales were made to genuine retail customers. The settlement did not shut down LuLaRoe, and the company continues to operate its network marketing business.
Mark Stidham, Co-Founder and Chief Executive Officer
DeAnne Stidham, Co-Founder
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Add an Instant REP ListingProduct Line: Product line: Women's, men's and children's apparel Primary products: Leggings, dresses, skirts, tops, cardigans, denim and casual apparel
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LuLaRoe has reached a settlement in a federal lawsuit accusing the clothing direct seller of improperly charging sales tax on purchases shipped to customers in Alaska, according to a notice filed in the U.S. District Court for the District of Alaska.
The notice, filed January 8, 2026, said plaintiff Katie Van and LuLaRoe had reached an agreement in principle, were finalizing settlement ...
LOS ANGELES, November 11, 2024 --
A Riverside County, California, jury awarded Cresden LLC more than 164 million dollars against LuLaRoe and related defendants after a two-month trial, plaintiffs' counsel Bird Marella announced. Cresden will also seek attorney fees as the prevailing party.
The jury found that the defendants breached written sourcing agreements covering tens of m...
A federal judge in the Central District of California on September 5, 2024 dismissed with prejudice a proposed class action that former consultant Jessica Ponkey brought in March 2021, alleging that LuLaRoe operated an unlawful, fraudulent pyramid scheme.
The court granted the motion by LuLaRoe parent LLR, Inc. to dismiss the first amended complaint. It found valid and enforceable the o...
U.S. District Judge Joshua M. Kindred of the District of Alaska on December 5, 2023 denied plaintiff Katie Van's renewed and amended motion for class certification in Van v. LLR, Inc., a suit accusing LuLaRoe of charging sales tax that Alaska buyers did not owe.
The case centers on LuLaRoe's Audrey point-of-sale system, which from 2015 to 2017 charged tax based on each retailer's locati...
The U.S. Court of Appeals for the Ninth Circuit on July 31, 2023 reversed and remanded district-court orders compelling arbitration and confirming an arbitration award in Jessica Ponkey v. LLR, Inc., a putative class action against LuLaRoe and related entities. The panel held the arbitration agreement unenforceable under California's unconscionability sliding-scale test.
The court cited...
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