Apparel e-Commerce Retailer LightInTheBox Posts 13% Revenue Decline In Q4, Reveals NYSE Non-Compliance Letter
Portfolio Pulse from Shivani Kumaresan
LightInTheBox Holding Co., Ltd. (NYSE:LITB) reported a 13.3% decline in Q4 FY23 sales year-on-year, with a decrease in product sales and a slight increase in services and others sales. The company's gross margin expanded, but gross profit fell. Operating expenses decreased, and the operating loss remained flat. Adjusted EBITDA improved slightly, and loss per ADS decreased significantly. LITB also disclosed receiving an NYSE non-compliance letter and provided a Q1 2024 revenue outlook of $70 million to $80 million. Shares closed higher by 4.94% at $0.7929.
March 25, 2024 | 12:28 pm
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NEUTRAL IMPACT
LightInTheBox reported a 13.3% decline in Q4 FY23 sales, with a decrease in product sales but an increase in services sales. Gross margin expanded, and operating loss remained flat. Adjusted EBITDA improved, and loss per ADS decreased significantly. The company also received an NYSE non-compliance letter.
The mixed financial results, with a significant decrease in sales but improvements in margins and reduced losses per ADS, suggest a neutral short-term impact on LITB's stock price. The positive price action following the earnings release indicates market optimism, but the NYSE non-compliance letter introduces uncertainty that could temper investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100