Shares in LightInTheBox Soar on Strong Product Sales, Profit
The online retailer is looking to come into compliance with the NYSE and maintain the minimum listing requirement of $1 per share, and it has come close to the mark after posting a strong third quarter on Tuesday.
The stock in LightInTheBox Holding Co. Ltd. (NYSE: LITB) soared more than 9% on Tuesday to 93 cents per American depositary share after the company announced strong product sales and profit in the third quarter.
The cross-border e-commerce platform, based in Beijing, said in a statement today that in the three months through September its revenue was $59.9 million, up 35% year-over-year.
Net income was $10 million, or 15 cents per ADS, in contrast to a net loss of $17.8 million, or 27 cents per ADS, a year ago, the report said.
Jian He, the chief executive officer of LITB, said in a call with analysts following the release of the results, "Earlier this year, we began to refine our supplier selection process to focus primarily on sourcing higher margin products from best-in-class suppliers. This quarter, we began providing suppliers with cutting edge tools to derive greater market insights into popular products design, trends and even materials that are increasingly in demand for apparel products."
The CEO added, "To further strengthen our position in each market, we launched a number of sales campaigns and highly localized promotional period. During this quarter, we ran a Prime Week campaign in North America to align already popular Prime Day global shopping event in mid of July,"
LITB has received warning of possible delisting from the New York Stock Exchange for not meeting the minimum requirement of $1 per ADS for a 30-day period. The company has six months to comply with the requirements of the capital market before a suspension or delisting occurs and it said it intends to resolve the issue.
Looking ahead, LITB said it expects to generate revenue in the range of $71 million to $75 million in the fourth quarter.
Earlier this month, LITB announced its Black Friday sales increased 68% year-over-year. Apparel was its best-selling product, with more than 5,000 long-sleeve t-shirts sold during the first 6 hours of the sales of event, the company said.
China's three top online retailers, JD.com Inc. (Nasdaq: JD), Alibaba Group Holding Ltd. (NYSE: BABA; HKEX: 9988) and Pinduoduo Inc. (Nasdaq: PDD) also participated in Black Friday sales. JD.com posted surging sales in cosmetics and imported baby formula, while Alibaba's Tmall saw 40% sales growth on Nov. 25 to 26. Pinduoduo, meanwhile, has partnered with American e-commerce giant Amazon.com Inc. (Nasdaq: AMZN) that week to get ahead.