Welcome!

News Feed Item

LightInTheBox Holding Co., Ltd. Reports Second Quarter 2014 Financial Results

Conference Call to be Held at 8:00AM Eastern Time on August 20, 2014

BEIJING, Aug. 20, 2014 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), a global online retail company that delivers products directly to consumers around the world, today announced its unaudited financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Highlights

  • Net revenues were $89.8 million, an increase of 24.3% year-over-year;
  • Total number of orders grew 52.4% to over 2.2 million;
  • Mobile orders increased to 28.2% of the total orders, compared with 16.8% in the same quarter of 2013;
  • Revenues from repeat customers reached 40.4% of total net revenues, compared with 32.5% in the same quarter of 2013;
  • Selling and marketing expenses as percentage of total net revenues improved sequentially to 27.7% from 31.8%. Selling and marketing expenses per order improved to $11.4 from $13.7 in the same quarter of 2013;
  • The Company repurchased $2.6 million of its ADSs, under its current share repurchase program

"We are pleased to report that the Company has re-accelerated its revenue growth as we increasingly benefit from the strategic plan that we have been implementing over the past few quarters," commented Mr. Alan Guo, Chairman and CEO of LightInTheBox. "Revenues for the second quarter were $89.8 million, which is above our previously-raised guidance range. The strong performance was primarily driven by fast growth in our ready-to-wear apparel business, a solid recovery in wedding apparel sales, as well as increased contribution from our mobile channels and repeat customers. As a global online retail company, we continue to make good progress on growing our customer base, increasing customer satisfaction, and enhancing platform capabilities, including global fulfillment infrastructure and logistics optimization."

Second Quarter 2014 Financial Results

Net revenues increased 24.3% year-over-year to $89.8 million. The increase was primarily driven by strong performance from the apparel category and the increasing contribution of the Company's mobile commerce business and repeat customer orders. Total orders grew 52.4% year-over-year to 2.2 million, and the total number of customers who made a purchase in the quarter increased 44.2% to 1.7 million. Revenues from repeat customers accounted for 40.4% of total net revenues, compared with 32.5% in the same quarter of 2013, while mobile orders increased to 28.2% of total orders, compared with 16.8% for the corresponding period of 2013.

Revenues in the apparel category rose 43.5% year-over-year to $35.4 million, reflecting the Company's initial success at re-igniting growth in this category. The strong performance was largely attributable to the robust growth in ready-to-wear apparel, while the Company's customized wedding business enjoyed another quarter of solid recovery. As a percentage of total net revenues, apparel revenues were 39.5%, compared with 34.2% in the same quarter of 2013. Revenues generated from electronics and other general merchandise increased by 14.3% to $54.4 million

Geographically, revenues from Europe increased 25.7% to $55.4 million, representing 61.7% of total net revenues. Revenues from North America increased by 40.0% to $20.0 million, representing 22.3% of total net revenues in the quarter while revenues from other countries increased by 3.7% to $14.4 million, representing 16.0% of total net revenues this quarter.

Gross profit was $35.5 million, representing an increase of 6.8% from $33.2 million year over year. Gross margin was 39.5%, a decrease from 46.0% in the same quarter of 2013. These changes were largely due to shifts in product mix and pricing strategy as the Company continued to expand market share and grow the customer base.

Total operating expenses were $41.8 million, compared with $32.2 million in the same quarter of 2013.

  • Fulfillment expenses were $5.5 million, compared with $3.7 million in the same quarter of 2013, primarily reflecting the increase in sales volume and number of orders fulfilled. As a percentage of total net revenues, fulfillment expenses increased to 6.1% from 5.2% in the same quarter of 2013, primarily based on smaller average order size. Fulfillment expenses per order improved to $2.5 from $2.6 in the same quarter of 2013.
  • Selling and marketing expenses were $24.8 million, compared with $19.6 million in the same quarter of 2013, reflecting the Company's efforts to grow its customer base and market share. As a percentage of total net revenues, selling and marketing expenses were 27.7%, an improvement from 31.8% in the previous quarter, and remained stable compared with 27.1% in the same quarter of 2013. The sequential improvement demonstrates the Company's commitment to optimize online marketing efforts and diversify traffic acquisition channels. Selling and marketing expenses per order improved to $11.4 from $13.7 in the same quarter 2013.
  • General and administrative expenses were $11.5 million, compared with $8.8 million in the same quarter of 2013, reflecting the growth of the Company's business operations and the Company's commitment to future growth. This includes $3.7 million in technology investments compared with $2.4 million in the same quarter of 2013. As a percentage of total net revenues, general and administrative expenses were 12.9%, down sequentially from 14.0% in the previous quarter and remained flat compared to 12.2% in the same quarter of 2013.

Loss from operations was $6.3 million, compared with an operating income of $1.1 million in the same quarter of 2013. Operating losses in the second quarter of 2014 narrowed by $2.3 million, from the previous quarter.

Adjusted loss from operations (non-GAAP), which excludes the impact of share-based compensation expense of $0.1 million, was $6.2 million, which compares with an adjusted income from operations (non-GAAP) of $3.9 million in the second quarter of 2013.

Net loss attributable to ordinary shareholders was $5.7 million in the second quarter of 2014, compared with a net loss of $ 0.04 million in the same quarter of 2013.

Adjusted net loss attributable to ordinary shareholders (non-GAAP), which excludes the impact of share-based compensation expense, was $5.6 million, compared with adjusted net income (non-GAAP) of $2.8 million in the second quarter of 2013.

Net loss per ADS was $0.11, compared with net loss per ADS of $0.00 in the second quarter of 2013. Each ADS represents two ordinary shares.

For the quarter ended June 30, 2014, the Company's weighted average number of ADS used in computing loss per ADS was 49,687,565.

Cash flows from operations were negative $0.5 million as operating losses were partially offset by cash generated from working capital.

As of June 30, 2014, the Company had cash and cash equivalents, term deposit and restricted cash of $95.8 million, equivalent to approximately $1.93 per ADS. This compares with $99.7 million as of March 31, 2014.

Share Repurchase Program

On December 16, 2013, the Company announced a $20 million share repurchase program. As of June 30, 2014, the Company had repurchased a total of $2.6 million of its ADSs.

Business Outlook

For the third quarter of 2014, the Company expects net revenues to be between $92 million and $94 million, representing a year-over-year growth rate of approximately 35% to 38%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Conference Call

The Company will hold a conference call at 8:00 a.m. Eastern Time on Wednesday August 20, 2014 to discuss its financial results and operating performance for the second quarter of 2014. To participate in the call, please dial the following numbers:

US Toll Free: 1-866-519-4004
Hong Kong: 800-930-346
China: 400-620-8038
International: 65-6723-9381
Passcode: 84159360

A telephone replay will be available two hours after the conclusion of the conference call through 11:59 p.m., Eastern Time on August 28, 2014. The dial-in details are:

US: 1-646-254-3697
Hong Kong: 852-3051-2780
International: 61-2-8199-0299
Passcode: 84159360

A live and archived webcast of the conference call will be available on the Investor Relations section of LightInTheBox's website at http://ir.lightinthebox.com.

About LightInTheBox Holding Co., Ltd.

LightInTheBox is a global online retail company that delivers products directly to consumers around the world. The Company offers customers a convenient way to shop for a wide selection of products at attractive prices through its www.lightinthebox.com, www.miniinthebox.com and other websites and mobile applications, which are available in 27 major languages and cover more than 80% of global Internet users.

For more information, please visit www.lightinthebox.com.

Investor Relations Contact

LightInTheBox Holding Co., Ltd.
Margaret Shi, Investor Relations
Tel: +86(10) 5692 0099 ext 8124
Email: [email protected]

OR

Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

Use of Non-GAAP Financial Measures

LightInTheBox uses non-GAAP net income/(loss), non-GAAP net income/(loss) per basic and diluted ADS, non-GAAP income/(loss) from operations, non-GAAP net income/(loss) margin, and non-GAAP operating income/(loss) margin, each of which is a non-GAAP financial measure. Non-GAAP net income/(loss) is net income/(loss) excluding share-based compensation expenses. Non-GAAP net income/(loss) per basic and diluted ADS is non-GAAP net income/(loss) divided by weighted average number of basic and diluted ADS, respectively. Non-GAAP income/(loss) from operations is income/(loss) from operations excluding share-based compensation expenses. Non-GAAP operating income/(loss) margin is non-GAAP income/(loss) from operations as a percentage of net revenues. Non-GAAP net income/(loss) margin is non-GAAP net income/(loss) as a percentage of net revenues. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of non-cash share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool.

One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income/(loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this release.

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets" and similar statements. Among other things, statements that are not historical facts, including statements about LightInTheBox's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as LightInTheBox's strategic and operational plans, are or contain forward-looking statements. LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: LightInTheBox's goals and strategies; LightInTheBox's future business development, results of operations and financial condition; the expected growth of the global online retail market; LightInTheBox's ability to attract customers and further enhance customer experience and product offerings; LightInTheBox's ability to strengthen its supply chain efficiency and optimize its logistics network; LightInTheBox's expectations regarding demand for and market acceptance of its products; competition; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in LightInTheBox's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and LightInTheBox does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Balance Sheets

(U.S. dollar in thousands)








 As of December 31,


 As of June 30,



2013


2014

ASSETS





Current Assets





Cash and cash equivalents


23,745


18,607

Term deposit


79,958


75,763

Restricted cash


1,360


1,417

Accounts receivable


259


287

Inventories, net


7,081


6,357

Prepaid expenses and other current assets


8,890


9,777

Total current assets


121,293


112,208

Property and equipment, net


3,002


3,700

Acquired intangible assets, net


266


258

Goodwill


690


690

Long-term deposit


640


694

TOTAL ASSETS


125,891


117,550






LIABILTIES





Current Liabilities





Accounts payable


18,677


17,862

Advance from customers


10,263


14,430

Accrued expenses and other current liabilities


15,560


19,694

Total current liabilities


44,500


51,986

TOTAL LIABILITIES


44,500


51,986






EQUITY





Ordinary shares


7


7

Treasury shares, at cost


-


(2,642)

Additional paid-in capital


153,124


154,833

Accumulated deficit


(71,621)


(86,522)

Accumulated other comprehensive loss


(119)


(112)

TOTAL EQUITY


81,391


65,564

TOTAL LIABILITIES AND EQUITY


125,891


117,550











 

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

(U.S. dollar in thousands, except share data and per share data)








Three-month Period Ended



June 30,


June 30,

2013


2014

Net revenues


72,223


89,771

Cost of goods sold


(38,991)


(54,275)

Gross profit


33,232


35,496

Operating expenses





Fulfillment


(3,745)


(5,475)

Selling and marketing


(19,604)


(24,835)

General and administrative


(8,822)


(11,543)

Total operating expenses


(32,171)


(41,853)

Income (loss) from operations


1,061


(6,357)

Exchange gain on offshore bank accounts


-


46

Interest (expense) income


(395)


654

Income (loss) before income taxes


666


(5,657)

Income taxes expenses


(18)


(19)

Net income (loss)


648


(5,676)

Accretion for Series C convertible redeemable preferred shares


(683)


-

Net loss attributable to ordinary shareholders


(35)


(5,676)






Weighted average numbers of shares used in calculating loss per ordinary share





-Basic


50,450,976


99,375,130

-Diluted


52,126,412


99,375,130






Net loss per ordinary share





-Basic


(0.00)


(0.06)

-Diluted


(0.00)


(0.06)






Net loss per ADS (2 ordinary shares equal to 1 ADS)





-Basic


(0.00)


(0.11)

-Diluted


(0.00)


(0.11)











 

 

LightInTheBox Holding Co., Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

(U.S. dollar in thousands, except share data and per share data)








Three-month Period Ended



June 30,


June 30,

2013

2014

Income (loss) from operations


1,061


(6,357)

Share-based compensation expenses


2,824


120

Non-GAAP income (loss) from operations


3,885


(6,237)






Net income (loss)


648


(5,676)

Share-based compensation expenses


2,824


120

Non-GAAP net income (loss)


3,472


(5,556)






Net loss attributable to ordinary shareholders


(35)


(5,676)

Share-based compensation expenses


2,824


120

Non-GAAP net income (loss) attributable to ordinary shareholders


2,789


(5,556)






Non-GAAP weighted average numbers of shares used in calculating
net income (loss) per ordinary share





-Basic


50,450,976


99,375,130

-Diluted


52,126,412


99,375,130






Non-GAAP net income (loss) per ordinary share





-Basic


0.06


(0.06)

-Diluted


0.05


(0.06)






Non-GAAP net income (loss) per ADS (2 ordinary shares equal to 1
ADS)





-Basic


0.11


(0.11)

-Diluted


0.10


(0.11)











 

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

(U.S. dollar in thousands)








Three-month Period Ended



June 30,


June 30,

2013

2014

Net income (loss)


648


(5,676)

Adjustments to reconcile net income (loss) to net cash provided by
operating activities





Depreciation and amortization


306


481

Share-based compensation


2,824


120

Exchange gain on offshore bank accounts


-


(46)

Amortization of debt discount


220


-

Interest on convertible notes


176


-

Changes in operating assets and liabilities





Accounts receivable


89


583

Inventories, net


1,342


645

Prepaid expenses and other current assets


(1,194)


27

Accounts payable


1,080


189

Advance from customers


(3,630)


476

Accrued expense and other current liabilities


2,628


2,723

Long-term deposit


20


17

Net cash provided by (used in) operating activities


4,509


(461)

Cash flows from investing activities





Purchase of property and equipment


(1,294)


(896)

Maturity of term deposit


-


3,612

Deposit in restricted cash


200


(40)

Net cash (used in) provided by investing activities


(1,094)


2,676

Cash flows from financing activity





Cash proceeds from initial public offering


75,030


-

Proceeds from exercise of share options


6


72

Repurchase of ordinary shares


-


(2,642)

Payment of professional fees related to initial public offering


(1,764)


-

Net cash provided by (used in) financing activities


73,272


(2,570)

Effect of exchange rate changes on cash and cash equivalents


20


(32)

Cash and cash equivalents at beginning of period


25,949


18,994

Cash and cash equivalents at end of period


102,656


18,607











 

SOURCE LightInTheBox Holding Co., Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 20th Cloud Expo, Tom Eck, Industry Platforms CTO at IBM Cloud, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing developers ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...