LITB stock soared up more than 38% in pre-market trading only to dump in regular trading as the trade war between the U.S. and China shows no end in sight.
On December 1, 2019, LightInTheBox Holding Co., a Chinese cross-border e-commerce platform, announced that sales during Black Friday 2019 grew 68% year-over-year. Gross margin during Black Friday increased 119% which supported a 169% increase in contribution margin and a significant 311% increase in net profit when compared to the same point last year. The apparel category was the best-selling vertical, with more than 5,000 units of a long-sleeved t-shirt sold during first 6 hours of the sales event. Net sales in Europe in particular increased 32.3% year-over-year while gross margin expanded by over 99%.
On December 10, 2019, LightInTheBox Holding Co., Ltd. (NYSE: LITB) (“LightInTheBox” or the “Company”), a cross-border e-commerce platform that delivers products directly to consumers around the world, today announced its unaudited financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Highlights
- Total revenues regained significant growth momentum increasing 34.6% year-over-year to $59.9 million.
- Gross margin improved to 42.3% from 15.1% in the same quarter of 2018.
- Net income was $10.0 million, compared with a net loss of $17.8 million in the same quarter of 2018.
- Adjusted EBITDA improved significantly, increasing to earnings of $0.5 million, compared with a loss of $17.3 million in the same quarter of 2018.
Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, “Our results this quarter are a strong reflection of the significant progress we have made since we began implementing our strategy to turn the business around last year. I am pleased to report that we are beginning to see the tangible benefits of the changes we have been making to improve operational efficiency, product optimization, and cost controls which resulted in our first quarter of GAAP profitability since 2014. In particular, our focus on improving product optimization, driving customer engagement and expanding our market scale have been critical to the success we have seen so far. Adjusted EBITDA was also positive for the second consecutive quarter, increasing to earnings of $0.5 million from a loss of $17.3 million during the same period last year, which I believe demonstrates the growth trajectory we are on. We remain focused on executing our strategy to generate sustainable long-term growth and are very encouraged by our improvements to date. We will continue to implement our strategies in order to maintain the trend of improvement.”
Third Quarter 2019 Financial Results
Total revenues increased by 34.6% year-over-year to $59.9 million from $44.5 million in the same quarter of 2018. Revenues generated from product sales were $58.1 million, compared with $42.9 million in the same quarter of 2018. Revenues from service and others were $1.8 million, compared with $1.6 million in the same quarter of 2018.
The number of orders for product sales was 1.4 million in the third quarter of 2019, compared with 0.8 million in the same quarter of 2018. The number of customers for product sales was 0.8 million for the third quarter of 2019, compared with 0.7 million in the same quarter of 2018.
Revenues generated from product sales in the apparel category were $20.3 million in the third quarter of 2019, compared with $14.4 million in the same quarter of 2018. As a percentage of product sales, apparel revenues accounted for 34.9% in the third quarter of 2019, compared with 33.6% in the same quarter of 2018. Revenues generated from product sales from other general merchandise were $37.8 million in the third quarter of 2019.