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LightInTheBox Reports 9.4% Revenue Growth for Full Year 2017

BEIJING, March 23, 2018 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), a global online retail company that delivers products directly to consumers around the world, today announced its unaudited financial results for the full year and the fourth quarter of 2017.

Full Year 2017 Highlights

  • Net revenues increased 9.4% year-over-year to $319.9 million
  • Net revenues from product sales increased 12.2% year-over-year
  • Product sales in the apparel category increased 11.1% year-over-year
  • Sales made through mobile devices increased 22.1% year-over-year. Sales made through the Company's mobile app increased 73.6% year-over-year
  • General and Administrative expenses as a percentage of total net revenues decreased to 9.3% from 11.8% in 2016
  • Fulfillment expenses as a percentage of total net revenues dropped to 5.4% from 5.8% in 2016
  • Revenues from South America and Russia increased 51.2% and 21.1% year-over-year, respectively

Full Year 2017 Financial Results

Net revenues increased 9.4% year-over-year to $319.9 million from $292.5 million in 2016. Net revenues from product sales were $294.0 million, compared with $262.1 million in 2016. Net revenues from service and others were $25.9 million, compared with $30.4 million in 2016. As a percentage of net revenues, service and others accounted for 8.1% in 2017.

Total orders of product sales were 6.7 million for the full year of 2017, compared with 6.6 million in 2016. Total number of product sales customers was 4.9 million for the full year of 2017, flat with 2016.

Product sales in the apparel category were $99.2 million for the full year of 2017, compared with $89.3 million in 2016. As a percentage of product sales, apparel revenues accounted for 33.7% for the full year of 2017, compared with 34.1% in 2016. Product sales from other general merchandise were $194.8 million for the full year of 2017.

Product sales from Europe were $153.7 million for the full year of 2017, compared with $145.2 million in 2016, representing 52.3% of total product sales for the full year of 2017. Product sales from North America were $73.3 million, compared with $77.8 million in 2016, representing 24.9% of total product sales for the full year of 2017, while product sales from other countries were $67.0 million, representing 22.8% of total product sales for the full year of 2017.

Total cost of revenues was $214.3 million in the full year of 2017, compared with $188.9 million in 2016. Cost for product sales was $189.9 million in the full year of 2017, compared with $160.6 million in 2016. Cost for service and others was $24.4 million in the full year of 2017, compared with $28.3 million in 2016.

Gross profit for the full year of 2017 was $105.6 million, compared with $103.6 million in 2016. Gross margin was 33.0% in the full year of 2017, compared with 35.4% in 2016.

Total operating expenses in the full year of 2017 were $115.8 million, compared with $112.6 million in 2016.

  • Fulfillment expenses in the full year of 2017 were $17.3 million, compared with $17.1 million in 2016. As a percentage of total net revenues, fulfillment expenses were 5.4% for the full year of 2017, compared to 5.8% in 2016.
  • Selling and marketing expenses in the full year of 2017 were $68.9 million, compared with $61.1 million in 2016. As a percentage of total net revenues, selling and marketing expenses were 21.5% for the full year of 2017, compared to 20.9% in 2016.
  • General and administrative (G&A) expenses in the full year of 2017 were $29.6 million, compared with $34.5 million in 2016. As a percentage of total net revenues, G&A expenses were 9.3% for the full year of 2017, compared with 11.8% in 2016. G&A expenses in the full year of 2017 included $10.4 million in technology investments, compared with $12.8 million in 2016.

Loss from operations was $10.2 million in the full year of 2017, compared with a loss from operations of $9.1 million in 2016.

Net loss was $9.5 million in the full year of 2017, compared with a net loss of $8.7 million in 2016.

Net loss per American Depository Share ("ADS") was $0.14 in the full year of 2017, flat with 2016. Each ADS represents two ordinary shares.

Fourth Quarter 2017 Financial Results

Net revenues decreased 3.7% year-over-year to $91.6 million from $95.2 million in the same quarter of 2016. Net revenues from product sales were $83.1 million, compared with $84.7 million in the same quarter of 2016. Net revenues from service and others were $8.5 million, compared with $10.5 million in the same quarter of 2016. As a percentage of net revenues, service and others accounted for 9.2% during the fourth quarter of 2017.

Total orders of product sales were 1.7 million for the fourth quarter of 2017, compared with 2.2 million in the same quarter of 2016. Total number of product sales customers was 1.4 million for the fourth quarter of 2017, compared with 1.7 million in the same quarter of 2016.

Product sales in the apparel category were $25.3 million for the fourth quarter of 2017, compared with $24.1 million in the same quarter of 2016. As a percentage of product sales, apparel revenues accounted for 30.4% for the fourth quarter of 2017, compared with 28.5% in the same quarter of 2016. Product sales from other general merchandise were $57.8 million for the fourth quarter of 2017.

Product sales from Europe were $44.5 million for the fourth quarter of 2017, compared with $47.0 million in the same quarter of 2016, representing 53.5% of total product sales for the fourth quarter of 2017. Product sales from North America were $19.0 million, compared with $22.7 million in the same quarter of 2016, representing 22.9% of total product sales for the fourth quarter of 2017, while product sales from other countries were $19.6 million, representing 23.6% of total product sales for the same quarter.

Total cost of revenues was $64.4 million in the fourth quarter of 2017, compared with $63.4 million in the same period of 2016. Cost for product sales was $56.7 million in the fourth quarter of 2017, compared with $53.6 million in the same period of 2016. Cost for service and others was $7.7 million in the fourth quarter of 2017, compared with $9.8 million in the same period of 2016.

Gross profit for the fourth quarter of 2017 was $27.2 million, compared with $31.8 million in the same period of 2016. Gross margin was 29.7% in the fourth quarter of 2017, compared with 33.4% in the same quarter of 2016.

Total operating expenses in the fourth quarter of 2017 were $30.8 million, compared with $34.2 million in the same quarter of 2016.

  • Fulfillment expenses in the fourth quarter of 2017 were $5.0 million, compared with $4.6 million in the same quarter of 2016. As a percentage of total net revenues, fulfillment expenses were 5.5% for the fourth quarter of 2017, compared to 4.8% in the same quarter of 2016 and 5.4% in the third quarter of 2017.
  • Selling and marketing expenses in the fourth quarter of 2017 were $17.8 million, compared with $19.5 million in the same quarter of 2016. As a percentage of total net revenues, selling and marketing expenses were 19.4% for the fourth quarter of 2017, compared to 20.5% in the same quarter of 2016 and 23.1% in the third quarter of 2017.
  • General and administrative (G&A) expenses in the fourth quarter of 2017 were $8.0 million, compared with $10.1 million in the same quarter of 2016. As a percentage of total net revenues, G&A expenses were 8.7% for the fourth quarter of 2017, compared with 10.6% in the same quarter of 2016 and 8.6% in the third quarter of 2017. G&A expenses in the fourth quarter of 2017 included $2.7 million in technology investments, compared with $3.1 million in the same quarter of 2016.

Loss from operations was $3.6 million in the fourth quarter of 2017, compared with a loss from operations of $2.4 million in the same quarter of 2016.

Net loss was $3.5 million in the fourth quarter of 2017, compared with a net loss of $2.4 million in the same quarter of 2016.

Net loss per ADS was $0.05 in the fourth quarter of 2017, compared with net loss per ADS of $0.04 in the same quarter of 2016. Each ADS represents two ordinary shares.

For the fourth quarter of 2017, the Company's weighted average number of ADSs used in computing loss per ADS was 68,565,927.

As of December 31, 2017, the Company had cash and cash equivalents and restricted cash of $70.0 million, compared with $71.1 million as of September 30, 2017.

Share Repurchase Program Extension

On June 15, 2017, the Company announced the extension of its existing share repurchase program for an additional twelve month period from June 15, 2017 through June 14, 2018 to continue to repurchase up to the remaining balance of the $10 million of its American Depositary Shares ("ADSs").  As of December 31, 2017, the Company had repurchased a total of $3.9 million of its ADSs.

About LightInTheBox Holding Co., Ltd.

LightInTheBox is a global online retail company that delivers products directly to consumers around the world. The Company offers customers a convenient way to shop for a wide selection of products at attractive prices through its www.lightinthebox.com, www.miniinthebox.com and other websites and mobile applications, which are available in 23 major languages and cover more than 80% of global Internet users.

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

Investor Relations Contact 

Christensen
Ms. Xiaoyan Su
Tel: +86 (10) 5900 3429
Email: ir@lightinthebox.com

OR

Christensen
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.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 fourth 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. dollar in thousands)








 As of December 31, 


 As of December 31, 



2016


2017

ASSETS





Current Assets





Cash and cash equivalents


89,517


68,441

Restricted cash


1,559


1,573

Accounts receivable


2,401


3,433

Inventories, net


10,587


11,841

Prepaid expenses and other current assets


9,674


15,696

Total current assets


113,738


100,984

Property and equipment, net


1,071


920

Acquired intangible assets, net


215


210

Goodwill


690


690

Long-term rental deposit


638


671

Long-term investment


1,849


5,262

TOTAL ASSETS


118,201


108,737






LIABILITIES





Current Liabilities





Accounts payable


22,523


22,430

Advance from customers


8,758


10,110

Accrued expenses and other current liabilities


21,084


20,727

Total current liabilities


52,365


53,267

TOTAL LIABILITIES


52,365


53,267






EQUITY 





Ordinary shares


10


11

Treasury shares, at cost


(20,806)


(23,907)

Additional paid-in capital


236,949


238,851

Accumulated deficit


(149,738)


(159,286)

Accumulated other comprehensive loss


(579)


(199)

TOTAL EQUITY 


65,836


55,470

TOTAL LIABILITIES AND EQUITY


118,201


108,737

 

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

(U.S. dollar in thousands, except share data and per share data)












Three-month Period Ended


Twelve-month Period Ended



December 31,


December 31,


December 31,


December 31,

2016


2017

2016


2017

Net revenues









   Product sales


84,749


83,140


262,083


293,951

   Services and others


10,431


8,471


30,404


25,930

Total net revenues


95,180


91,611


292,487


319,881

Cost of revenues









   Product sales


(53,566)


(56,665)


(160,566)


(189,816)

   Services and others


(9,795)


(7,775)


(28,371)


(24,445)

Total Cost of revenues


(63,361)


(64,440)


(188,937)


(214,261)

Gross profit


31,819


27,171


103,550


105,620

Operating expenses









  Fulfillment


(4,586)


(5,028)


(17,052)


(17,291)

   Selling and marketing


(19,526)


(17,756)


(61,090)


(68,891)

   General and administrative


(10,073)


(7,978)


(34,492)


(29,605)

Total operating expenses


(34,185)


(30,762)


(112,634)


(115,787)

Loss from operations


(2,366)


(3,591)


(9,084)


(10,167)

Exchange loss on offshore bank accounts


(190)


(46)


(120)


(89)

Interest income


112


70


518


581

Loss before income taxes


(2,444)


(3,567)


(8,686)


(9,675)

Income taxes expenses


(12)


(51)


(54)


(81)

Gain from equity method investments


38


79


17


208

Net loss 


(2,418)


(3,539)


(8,723)


(9,548)










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









--Basic


137,888,454


137,131,854


127,180,801


137,641,562

--Diluted


137,888,454


137,131,854


127,180,801


137,641,562










Net loss per ordinary share









--Basic


(0.02)


(0.03)


(0.07)


(0.07)

--Diluted


(0.02)


(0.03)


(0.07)


(0.07)










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









--Basic


(0.04)


(0.05)


(0.14)


(0.14)

--Diluted


(0.04)


(0.05)


(0.14)


(0.14)

 

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

(U.S. dollar in thousands)












Three-month Period Ended


Twelve-month Period Ended



December 31,


December 31,


December 31,


December 31,

2016

2017


2016

2017

Net loss


(2,418)


(3,539)


(8,723)


(9,548)

Adjustments to reconcile net loss to net cash used in
operating activities









  Depreciation and amortization


255


170


1,395


769

  Share-based compensation


495


411


2,317


1,865

  Inventory write-down


474


458


3,286


2,065

  Exchange loss on offshore bank accounts


190


46


120


89

  Gain from equity method investments


(38)


(79)


(17)


(208)

Changes in operating assets and liabilities









  Accounts receivable


139


(1,143)


(1,707)


(973)

  Inventories


(2,159)


(945)


(2,642)


(3,293)

  Prepaid expenses and other current assets


(2,094)


(329)


(4,659)


(5,985)

  Accounts payable


8,681


7,501


(6,813)


(108)

  Advance from customers


(1,960)


(2,570)


476


1,345

  Accrued expense and other current liabilities


1,450


1,140


1,635


(837)

  Long-term rental deposit


1


12


(2)


(12)

Net cash provided by (used in) operating activities


3,016


1,133


(15,334)


(14,831)

Cash flows from investing activities









  Purchase of property and equipment


(95)


(238)


(334)


(556)

  (Increase)decrease in restricted cash


(479)


(136)


47


(15)

  Payment for long term investment


-


-


-


(2,950)

Net cash used in investing activities


(574)


(374)


(287)


(3,521)

Cash flows from financing activities









  Issuance of ordinary shares


-


-


76,499


-

  Cash proceeds from exercise of option


-


14


22


37

  Payment of private placement offering expenses


(153)


-


(1,076)


-

  Repurchase of ordinary shares


(462)


(2,070)


(810)


(3,101)

Net cash (used in) provided by financing activities


(615)


(2,056)


74,635


(3,064)

Effect of exchange rate changes on cash and cash
equivalents


(378)


108


(398)


340

Cash and cash equivalents at beginning of period


88,068


69,630


30,901


89,517

Cash and cash equivalents at end of period


89,517


68,441


89,517


68,441

 

Cision View original content:http://www.prnewswire.com/news-releases/lightinthebox-reports-94-revenue-growth-for-full-year-2017-300618707.html

SOURCE LightInTheBox Holding Co., Ltd.