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LightInTheBox Reports First Quarter 2024 Financial Results

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LightInTheBox (NYSE: LITB) reported its unaudited financial results for Q1 2024 on May 28, 2024. The company faced macroeconomic challenges and increased competition, resulting in a shift from sales growth to profitability focus. Total revenues dropped by 51.8% year-over-year to $71.2 million, and apparel sales decreased by 52.7% to $56.4 million. Gross profit fell to $41.4 million, while operating expenses were reduced to $45.5 million. The net loss was $3.8 million, slightly improving from $4.0 million the previous year. Adjusted EBITDA remained a loss of $3.1 million. The company had $30.9 million in cash and equivalents as of March 31, 2024. For Q2 2024, net revenues are expected to be between $60 million and $70 million. A share repurchase program has been extended through June 30, 2024.

Positive
  • Gross margin improved to 58.2% from 55.8% in Q1 2023.
  • Operating expenses were reduced to $45.5 million from $86.5 million in Q1 2023.
  • Selling and marketing expenses decreased to $32.7 million from $69.1 million.
  • Fulfillment expenses lowered to $5.7 million from $8.6 million.
  • General and administrative expenses dropped to $7.3 million from $9.1 million.
  • Net loss reduced slightly to $3.8 million from $4 million.
Negative
  • Total revenue dropped 51.8% year-over-year to $71.2 million.
  • Apparel sales fell 52.7% to $56.4 million.
  • Gross profit decreased significantly to $41.4 million from $82.5 million.
  • Cash and cash equivalents dropped to $30.9 million from $73.6 million year-over-year.
  • Adjusted EBITDA remained a loss of $3.1 million.

Insights

LightInTheBox's Q1 2024 financial results present a mixed bag for investors. On one side, we see a sharp decrease in total revenues by 51.8% year-over-year, falling to $71.2 million from $147.8 million. The most significant drop was in apparel sales, which declined by 52.7% to $56.4 million. This dramatic drop in revenue suggests severe macroeconomic and competitive pressures that might not alleviate soon. The company's strategy shift from sales growth to profitability is notable, but the impact of this pivot will need more time to become evident.

In terms of expenses, a reduction in total operating expenses to $45.5 million from $86.5 million shows that cost-cutting measures are in place. The gross margin improved to 58.2%, up from 55.8%, indicating some efficiency gains despite falling revenues. However, the net loss of $3.8 million remains relatively unchanged from the previous year, pointing to the ongoing challenges in achieving profitability.

Another critical point is the cash reserves, which have dwindled to $30.9 million from $73.6 million a year ago. This reduction raises concerns about the company's liquidity position and its ability to invest in growth initiatives. The extension of the share repurchase program indicates confidence in the long-term value but also highlights the need for careful cash management moving forward.

In short, while strategic adjustments are in play, the immediate financial outlook remains challenging.

The steep revenue decline for LightInTheBox indicates significant market headwinds and increasing competition in the online apparel sector. The company's shift to prioritize profitability over sales growth is a strategic move to enhance long-term sustainability, but it may take several quarters before market performance reflects this change. The focus on high-quality development and brand differentiation suggests an effort to create a more loyal customer base and enhance brand equity, which could pay off in the longer term.

Moreover, the company's localized operations and marketing campaigns in key markets aim to tailor strategies to specific consumer preferences, which could improve customer engagement and retention. The decline in marketing expenses as a percentage of total revenues from 46.8% to 46.0% shows attempts at more efficient spending in a challenging market environment.

However, the lower revenue expectations for Q2 2024, projected between $60 million and $70 million, reinforce the notion that recovery may be gradual. Investors should monitor how well these strategic pivots translate into effective market positioning and organic growth in the coming periods.

SINGAPORE , May 28, 2024 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), an apparel e-commerce retailer that ships products to consumers worldwide, today announced its unaudited financial results for the first quarter ended March 31, 2024.

"We faced macroeconomic headwinds and increasing competition in the first quarter of 2024," said Mr. Jian He, Chairman and CEO of LightInTheBox. "We addressed the complex landscape with our high-quality development strategy, pivoting from prioritizing sales growth to focusing on profitability. We also strove to grow our brand awareness with high value-for-money products and optimize our consumption experience."

"As we move through 2024, we will remain focused on high-quality development and profitability. We are fostering new brands and initiating a series of strategic adjustments to differentiate our products, services and customer experience while refining our localized operations and marketing campaigns in key markets. We believe these strategic initiatives will optimize marketing ROI, drive user traffic and cultivate a loyal customer base over time, strengthening our brand recognition worldwide and overall competitiveness. Delivering high-quality development and sustainable, long-term value for all stakeholders remains our ultimate goal," Mr. He concluded.

First Quarter 2024 Financial Highlights

  • Total revenues were $71.2 million in the first quarter of 2024, compared with $147.8 million in the same period of 2023.

  • Apparel sales were $56.4 million in the first quarter of 2024, compared with $119.2 million in the same period of 2023.

  • Net loss was $3.8 million in the first quarter of 2024, compared with $4.0 million in the same period of 2023.

  • Adjusted EBITDA was a loss of $3.1 million in the first quarter of 2024, compared with a loss of $3.1 million in the same period of 2023.

First Quarter 2024 Financial Results

Total revenues decreased by 51.8% year-over-year to $71.2 million from $147.8 million in the same quarter of 2023. Sales from apparel decreased by 52.7% to $56.4 million in the first quarter of 2024, compared with $119.2 million in the same quarter of 2023.

Total cost of revenues was $29.7 million in the first quarter of 2024, compared with $65.3 million in the same quarter of 2023.

Gross profit in the first quarter of 2024 was $41.4 million, compared with $82.5 million in the same quarter of 2023. Gross margin was 58.2% in the first quarter of 2024, compared with 55.8% in the same quarter of 2023.

Total operating expenses in the first quarter of 2024 were $45.5 million, compared with $86.5 million in the same quarter of 2023.

  • Fulfillment expenses in the first quarter of 2024 were $5.7 million, compared with $8.6 million in the same quarter of 2023. As a percentage of total revenues, fulfillment expenses were 8.1% in the first quarter of 2024, compared with 5.8% in the same quarter of 2023 and 5.9% in the fourth quarter of 2023.

  • Selling and marketing expenses in the first quarter of 2024 were $32.7 million, compared with $69.1 million in the same quarter of 2023. As a percentage of total revenues, selling and marketing expenses were 46.0% in the first quarter of 2024, compared with 46.8% in the same quarter of 2023 and 48.5% in the fourth quarter of 2023.

  • G&A expenses in the first quarter of 2024 were $7.3 million, compared with $9.1 million in the same quarter of 2023. As a percentage of total revenues, G&A expenses were 10.2% in the first quarter of 2024, compared with 6.1% in the same quarter of 2023 and 5.0% in the fourth quarter of 2024. As part of G&A expenses, R&D expenses in the first quarter of 2024 were $4.6 million, compared with $5.2 million in the same quarter of 2023 and $3.6 million in the fourth quarter of 2023.

Loss from operations was $4.0 million in the first quarter of 2024, compared with $4.0 million in the same quarter of 2023.

Net loss was $3.8 million in the first quarter of 2024, compared with $4.0 million in the same quarter of 2023.

Net loss per American Depository Share ("ADS") was $0.03 in the first quarter of 2024, compared with $0.03 in the same quarter of 2023. Each ADS represents two ordinary shares. The diluted net loss per ADS in the first quarter of 2024 was $0.03, compared with $0.03 in the same quarter of 2023.

In the first quarter of 2024, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 111,388,157.

Adjusted EBITDA was a loss of $3.1 million in the first quarter of 2024, compared with a loss of $3.1 million in the same quarter of 2023.

As of March 31, 2024, the Company had cash and cash equivalents and restricted cash of $30.9 million, compared with $73.6 million as of March 31, 2023.

Share Repurchase Program

On June 27, 2023, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to $10 million of its ordinary shares in the form of ADSs no later than December 31, 2023. The Company has since extended the share repurchase program through June 30, 2024. As of April 17, 2024, the Company had repurchased 3.2 million ADSs with a total aggregate value of approximately $3.5 million.

Business Outlook

For the second quarter of 2024, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $60 million and $70 million.

Non-GAAP Financial Measure

In evaluating the business, the Company considers and uses a non-GAAP measure, Adjusted EBITDA, as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Company's non-GAAP financial measure excludes share-based compensation expenses, depreciation and amortization expenses, interest income, interest expenses and income tax expense.

The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measure helps identify underlying trends in its business. The Company also believes that the non-GAAP financial measure could provide further information about the Company's results of operations and enhance the overall understanding of the Company's past performance and future prospects.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. The Company's non-GAAP financial measure does not reflect all items of income and expenses that affect the Company's operations and does not represent the residual cash flow available for discretionary expenditures. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for the limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company's financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Result" set forth at the end of this press release.

Conference Call

The Company's management will hold an earnings conference call at 9:00 a.m. Eastern Time on May 28, 2024 (9:00 p.m. Hong Kong/Singapore Time on the same day).

Preregistration Information

Participants can register for the conference call by going to https://s1.c-conf.com/diamondpass/10039195-64w0b3.html. Upon registration, participants will receive dial-in numbers, an event passcode, and a unique access PIN.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the event passcode followed by your unique access PIN, and you will be connected to the conference instantly.

A telephone replay will be available two hours after the conclusion of the conference call through June 4, 2024. The dial-in details are:

US/Canada:

+1-855-883-1031

Singapore:

800-101-3223

Hong Kong, China:

800-930-639

Replay PIN:

10039195

Additionally, a live and archived webcast of the conference call will be available on the Company's Investor Relations website at http://ir.lightinthebox.com.  

About LightInTheBox Holding Co., Ltd.

LightInTheBox is an apparel e-commerce retailer that ships products to consumers worldwide. With a focus on serving its middle-aged and senior customers, LightInTheBox leverages its global supply chain and logistics networks, along with its in-house R&D and design capabilities to offer a wide selection of comfortable, aesthetically pleasing and visually interesting apparel that brings fresh joy to customers. LightInTheBox operates its business through www.lightinthebox.com, www.ezbuy.sg and other websites as well as mobile applications, which are available in over 20 major languages and over 140 countries and regions. The Company is headquartered in Singapore, with additional offices in California, Shanghai and Beijing.

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

Investor Relations Contact

Investor Relations
LightInTheBox Holding Co., Ltd.
Email: ir@lightinthebox.com

Jenny Cai
Piacente Financial Communications
Email: lightinthebox@tpg-ir.com

Brandi Piacente
Piacente Financial Communications
Tel: +1-212-481-2050
Email: lightinthebox@tpg-ir.com

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. dollars in thousands, or otherwise noted)




As of December 31,


As of March 31,



2023


2024

ASSETS





Current Assets





Cash and cash equivalents


66,425


26,527

Restricted cash


5,279


4,337

Accounts receivable, net of allowance for credit losses


634


733

Inventories


5,767


4,583

Prepaid expenses and other current assets


6,875


9,034

Total current assets


84,980


45,214

Property and equipment, net


2,789


2,471

Intangible assets, net


3,604


3,298

Goodwill


27,393


26,947

Operating lease right-of-use assets


6,559


5,520

Long-term rental deposits


392


356

Other non-current assets


592


1,487

TOTAL ASSETS


126,309


85,293






LIABILITIES AND EQUITY / (DEFICIT)





Current Liabilities





Accounts payable


15,846


13,902

Advance from customers


17,001


15,350

Operating lease liabilities


5,046


4,289

Accrued expenses and other current liabilities


94,622


63,468

Total current liabilities


132,515


97,009






Operating lease liabilities


1,915


1,609

Deferred tax liabilities


154


151

Unrecognized tax benefits


107


107

TOTAL LIABILITIES


134,691


98,876






EQUITY / (DEFICIT)





Ordinary shares


17


17

Additional paid-in capital


283,137


283,361

Treasury shares


(30,359)


(31,193)

Accumulated other comprehensive loss


(1,856)


(2,617)

Accumulated deficit


(259,321)


(263,151)

TOTAL EQUITY / (DEFICIT)


(8,382)


(13,583)

TOTAL LIABILITIES AND EQUITY / (DEFICIT)


126,309


85,293

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

(U.S. dollars in thousands, except per share data, or otherwise noted)




Three months ended March 31,



2023


2024

Revenues





Product sales


144,601


67,831

Services and others


3,180


3,338

Total revenues


147,781


71,169

Cost of revenues





Product sales


(64,176)


(29,070)

Services and others


(1,103)


(650)

Total Cost of revenues


(65,279)


(29,720)

Gross profit


82,502


41,449

Operating expenses





Fulfillment


(8,636)


(5,746)

Selling and marketing


(69,112)


(32,741)

General and administrative


(9,057)


(7,259)

Other operating income


345


286

Total operating expenses


(86,460)


(45,460)

Loss from operations


(3,958)


(4,011)

Interest income


30


70

Interest expense


(1)


-

Other income, net


21


111

Total other income


50


181

Loss before income taxes


(3,908)


(3,830)

Income tax expense


(48)


-

Net loss


(3,956)


(3,830)

Net loss attributable to LightInTheBox Holding Co., Ltd.


(3,956)


(3,830)






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





-Basic


226,660,302


222,776,314

-Diluted


226,660,302


222,776,314






Net loss per ordinary share





-Basic


(0.02)


(0.02)

-Diluted


(0.02)


(0.02)






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





-Basic


(0.03)


(0.03)

-Diluted


(0.03)


(0.03)

 

LightInTheBox Holding Co., Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

(U.S. dollars in thousands, or otherwise noted)





Three months ended March 31,



2023


2024

Net loss


(3,956)


(3,830)

Less: Interest income


30


70

Interest expense


(1)


-

Income tax expense


(48)


-

Depreciation and amortization


(829)


(626)

EBITDA


(3,108)


(3,274)

Less: Share-based compensation


(5)


(224)

Adjusted EBITDA*


(3,103)


(3,050)


* Adjusted EBITDA represents net loss before share-based compensation expense, interest income, interest expense,
income tax expense and depreciation and amortization expenses.

 

Cision View original content:https://www.prnewswire.com/news-releases/lightinthebox-reports-first-quarter-2024-financial-results-302156577.html

SOURCE LightInTheBox Holding Co., Ltd.

FAQ

What were LightInTheBox's Q1 2024 earnings?

LightInTheBox reported a net loss of $3.8 million for Q1 2024.

How much did LightInTheBox's revenue decline in Q1 2024?

Total revenues declined by 51.8% year-over-year to $71.2 million.

What is the revenue guidance for LightInTheBox for Q2 2024?

LightInTheBox expects net revenues to be between $60 million and $70 million for Q2 2024.

How did LightInTheBox's apparel sales perform in Q1 2024?

Apparel sales fell by 52.7% to $56.4 million in Q1 2024.

What was LightInTheBox's cash and cash equivalents as of March 31, 2024?

The company had $30.9 million in cash and cash equivalents as of March 31, 2024.

What is the status of LightInTheBox's share repurchase program?

The share repurchase program has been extended through June 30, 2024, with 3.2 million ADSs repurchased for approximately $3.5 million so far.

LightInTheBox Holding Co., Ltd. American Depositary Shares, each representing twelve ordinary shares

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