After Departure of Chairman and CEO, LightInTheBox Says Revenue Slipped and Net Loss Tripled
Contributing to the overall decline was a year-over-year decrease in the number of orders and customers during the period.
The day after its founder, chairman, and chief executive officer announced he was leaving the company, online retailer LightInTheBox Holding Co. Ltd. (NYSE: LITB) said today its first quarter earnings fell 3.6 percent to $70.1 million compared with a year earlier while its net loss more than tripled.
The Beijing-based company reported that its loss in the three months ended March 31 grew to $7.9 million, or 12 cents per American depositary share, compared with a loss of $2.4 million, or 3 cents per share, in the same year-ago period.
Shares in the company, which announced earnings after the markets closed, closed Friday at $2.14 per ADS, down 4 cents.
While revenues declined to $70.1 million from $72.7 million a year ago, produce sales rose slightly to $66 million from $64.8 million, the company said. Revenue from services and other sources fell to $4.1 million from $7.9 million.
Contributing to the overall decline was a year-over-year decrease in the number of orders and customers during the period. The company said total orders were 1.3 million compared with last year's 1.6 million, while the number of customers for its products slid to 1 million from 1.2 million.
In all, the loss from operations was $8.1 million in the first quarter compared with a loss of $2.6 million last year.
Just yesterday, the company announced that its founder Alan Guo was voluntarily stepping down as CEO and chairman of the board to pursue other personal interests. The board has begun to search for a new CEO, while Guo will remain as CEO of the company for up to 60 days.
"After I founded LightInTheBox with my co-founders, I served as Chairman and CEO for 10 years," said Guo. "I have decided that the time has come for me to purse other interests and for the Company to embrace a new leadership to develop new initiatives and opportunities."
The company announced a year ago that it would repurchase up to $10 million of its ADSs by June14 of this year. A total of $6.8 million of its ADSs had been repurchased as of March 31, the company said.