In This Article:
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Total Revenue: Decreased by 63% year-over-year to $57 million.
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Gross Profit: $35 million, compared to $92 million in the same quarter last year.
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Gross Margin: Improved to 61% from 60% in the same period last year.
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Total Operating Expenses: Reduced by 63% year-over-year to $34 million.
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Fulfillment Expenses: Decreased by 50% year-over-year to $4 million.
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Selling and Marketing Expenses: Declined by 67% year-over-year to $25 million.
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General and Administrative Expenses: Decreased by 42% year-over-year to $6 million.
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Research and Development Expenses: $3 million, compared to $5 million in the same quarter last year.
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Net Income: $0.3 million, compared to $0.1 million in the same quarter last year.
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Adjusted EBITDA: $0.8 million, consistent with the third quarter of 2023.
Release Date: December 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LightInTheBox Holding Co Ltd (NYSE:LITB) achieved profitability despite significant revenue fluctuations, focusing on protecting margins and enhancing profitability.
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The launch of the new brand Ador.com is transforming LITB from an e-commerce retailer into a brand for apparel design, offering proprietary apparel collections directly to consumers.
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Ador.com is delivering higher margins and offers high-quality clothing at prices 50% lower than similar brands, without sacrificing margins.
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The company has streamlined logistics and supply chain processes, resulting in a 50% year-over-year decrease in fulfillment expenses.
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LITB's gross margin improved to 61% in the third quarter, largely due to the positive impact of new product lines, particularly those for Ador.com.
Negative Points
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Total revenues decreased by 63% year-over-year to $57 million, primarily due to intense competition in the global e-commerce industry.
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Gross profit decreased to $35 million compared with $92 million in the same quarter last year.
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Selling and marketing expenses declined by 67% year-over-year, indicating a significant reduction in marketing efforts.
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General and administrative expenses decreased by 42% year-over-year, which may impact the company's ability to invest in growth initiatives.
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Research and development expenses were reduced to $3 million from $5 million in the same quarter last year, potentially affecting future innovation.
Q & A Highlights
Q: Can you elaborate on the strategic decision to focus on profitability rather than market share? A: Jian He, CEO: In 2024, we decided not to chase market share at any cost due to intense competition in the e-commerce industry. Instead, we focused on protecting our margins and enhancing profitability. This approach has allowed us to achieve profitability despite significant revenue fluctuations.