LightInTheBox Shares Jump 11% on Doubled Revenue Projections
Shares in LightInTheBox Holding Co. Ltd. (NYSE: LITB) jumped 11% after the company reported topline growth in the first quarter and 100% year-over-year revenue growth in the second quarter.
The Beijing-based cross-border e-commerce company said in a statement today that revenue in the first quarter reached $51.5 million, up 1.3% year-over-year. Its net income hit $700,000, or 1 cent per ADS, compared with a net loss of $14.1 million, or 21 cents per ADS, in the same quarter of 2019.
LightInTheBox said that the first quarter is generally its slow season and the Covid-19 outbreak slowed business even further.
"We took advantage of the temporary slowdown to deepen relationships with high-quality suppliers, optimize our product portfolio and category mix, and improve order fulfillment speed," Jian He, the chief executive officer of LightInTheBox, said in the statement.
The e-commerce platform has reported its third consecutive quarter of profitability. The company added 0.2 million customers for product sales to 0.8 million in the first quarter, up from 0.6 million in the same quarter in 2019. However, the number of orders for product sales was 1 million in the first quarter of 2020, down 20% year-over-year.
LightInTheBox reported a total product sales increase but a drop in the apparel category, which y dropped to $13.4 million, down 7% year-over-year, and accounted for 27% of all the sales in the first quarter.
Affected by the epidemic, total retail sales in China of apparel, shoes, hats, needles, and textile products totaled 406.7 billion yuan ($58.1 billion) in the first five months of 2020, a year-over-year decrease of 23.5%, according to China's statistics authority.
Going forward, the company said it expects its revenue in the second quarter to be between $105 million and $120 million.
The online retail company, which sells clothing, electronics, and accessories, operates through a mobile platform available in 23 major languages, covering more than 140 countries.
Apart from the small e-commerce platforms, China's online retailing giants reported billions of dollars in sales during the midyear shopping event on Thursday. JD.com Inc. (Nasdaq: JD) sold $37.99 billion sales through its online platform, up 33% year-over-year, while Alibaba Group (NYSE: BABA; HKEX: 09988) reported its gross merchandise value of $98.52 billion, up 163% from Singles Day last year.
Skyrocketing sales during the 618 Shopping Festival this month was a good sign for the Chinese consumer consumption following a poor performance in the previous month. Total retail sales of consumer goods fell by 2.8% year-over-year in May.
Shares in LightInTheBox were trading at $1 per share, up 11% as of Friday midday.