LightInTheBox Reports First Quarter 2024 Financial Results
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.
- 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.
- 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
In terms of expenses, a reduction in total operating expenses to
Another critical point is the cash reserves, which have dwindled to
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
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
in the first quarter of 2024, compared with$71.2 million in the same period of 2023.$147.8 million - Apparel sales were
in the first quarter of 2024, compared with$56.4 million in the same period of 2023.$119.2 million - Net loss was
in the first quarter of 2024, compared with$3.8 million in the same period of 2023.$4.0 million - Adjusted EBITDA was a loss of
in the first quarter of 2024, compared with a loss of$3.1 million in the same period of 2023.$3.1 million
First Quarter 2024 Financial Results
Total revenues decreased by
Total cost of revenues was
Gross profit in the first quarter of 2024 was
Total operating expenses in the first quarter of 2024 were
- Fulfillment expenses in the first quarter of 2024 were
, compared with$5.7 million in the same quarter of 2023. As a percentage of total revenues, fulfillment expenses were$8.6 million 8.1% in the first quarter of 2024, compared with5.8% in the same quarter of 2023 and5.9% in the fourth quarter of 2023. - Selling and marketing expenses in the first quarter of 2024 were
, compared with$32.7 million in the same quarter of 2023. As a percentage of total revenues, selling and marketing expenses were$69.1 million 46.0% in the first quarter of 2024, compared with46.8% in the same quarter of 2023 and48.5% in the fourth quarter of 2023. - G&A expenses in the first quarter of 2024 were
, compared with$7.3 million in the same quarter of 2023. As a percentage of total revenues, G&A expenses were$9.1 million 10.2% in the first quarter of 2024, compared with6.1% in the same quarter of 2023 and5.0% in the fourth quarter of 2024. As part of G&A expenses, R&D expenses in the first quarter of 2024 were , compared with$4.6 million in the same quarter of 2023 and$5.2 million in the fourth quarter of 2023.$3.6 million
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
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
As of March 31, 2024, the Company had cash and cash equivalents and restricted cash of
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
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
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 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
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.
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/ | +1-855-883-1031 |
800-101-3223 | |
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
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
LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the
LightInTheBox Holding Co., Ltd. | ||||
Unaudited Condensed Consolidated Balance Sheets | ||||
( | ||||
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 | ||||
( | ||||
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 | ||||
-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 | ||||
( | ||||
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, |
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?
How much did LightInTheBox's revenue decline in Q1 2024?
What is the revenue guidance for LightInTheBox for Q2 2024?
How did LightInTheBox's apparel sales perform in Q1 2024?
What was LightInTheBox's cash and cash equivalents as of March 31, 2024?