Boston, MA 03/10/2014 (wallstreetpr) – Lightinthebox Holding Co. Ltd ADR (NYSE:LITB) recently announced its fourth quarterly and FY13 results.
Diminishing Quarterly Profits: Lightinthebox Holding Co. Ltd ADR (NYSE:LITB) declared 21.6% increase in its net revenue to $78.8 million ($64.8 million in the previous year’s quarter) of which only 37% were made from the repeat customers. The company through its aggressive marketing efforts increased its new customers by 42.5% during the quarter. Around 12.9% growth was witnessed in Apparel category, and 25.1% growth in electronic and general merchandising segment, which was mainly due to the growth witnessed in mobile commerce business. Europe remained to be its largest market generating $51.4 revenue followed by South America with $6.3 million and North America with $13.1 million. The gross profit rise by 12.3% at $30.8 million from its previous years quarterly result of $27.4 million. Selling and marketing expenses also rose by 59% to $24.7 million (against $15.5 million in the previous year’s quarter) as the company were initiating more aggressive sales plans, as the industry remained to be highly competitive. The net loss reported was $5.6 million compared to a net income of $1.1 million in its previous quarter 2012. Net cash was $3.8 million compared to $1.9 million in the same quarter previous year.
Full Year Results meeting analysts estimates: Lightinthebox Holding Co. Ltd ADR (NYSE:LITB) reported 46.2% revenue growth during the last financial year to $292.4 million from $200 million in FY12. It increased its customer base by 73.1% . The gross profit had 52.2% growth to $83.5 million. Net loss was in line with the analysts expectations at $4.8 million, compared to the previous year’s $4.2 million loss. The CEO proclaimed that mobile business revenue roared five times faster than the PC business. The growth in the revenue was also attributed to the recent diversification in the apparel category as well as marketing reach overseas.
Q114 Guidance: Lightinthebox Holding Co. Ltd ADR (NYSE:LITB) expects its net revenue to be between $78-$80 million representing growth of 6-9%, which it anticipates starting from the second quarter 2014.
