LightInTheBox Reports Fourth Quarter and Full Year 2024 Financial Results

Core Viewpoint - LightInTheBox Holding Co., Ltd. has shifted its strategic focus from growth to profitability, emphasizing brand development and margin preservation in a competitive e-commerce landscape [4][6]. Financial Highlights Fourth Quarter 2024 - Total Revenues were $58 million, a 57% decrease year over year, primarily due to the focus on margin preservation [6]. - Gross Profit was$ 34 million, down from $75 million in the same quarter last year, but Gross Margin improved to 59% from 56% [6]. - Operating Expenses declined by 59% year over year to$ 33 million, with significant reductions in Fulfillment Expenses (down 50% to $4 million) and Selling and Marketing Expenses (down 65% to$ 23 million) [6]. - Net Income reached $0.5 million, compared to a net loss of$ 4.3 million in the same quarter last year [6]. - Adjusted EBITDA was an income of $1.0 million, compared to a loss of$ 3.3 million in the same quarter last year [6]. Full Year 2024 - Total Revenues were $255 million, a 59% decrease year over year, reflecting the strategic pivot to margin preservation [6]. - Gross Profit was$ 153 million, down from $360 million in 2023, while Gross Margin improved to 60% from 57% [6]. - Operating Expenses declined by 58% year over year to$ 156 million, with notable reductions in Fulfillment Expenses (down 46% to $19 million) and Selling and Marketing Expenses (down 63% to$ 112 million) [6]. - Net loss narrowed to $2.5 million, compared with$ 9.6 million in 2023 [6]. - Adjusted EBITDA was a loss of $0.1 million, compared with a loss of$ 6.3 million in 2023 [6]. Strategic Initiatives - The company has adopted a brand matrix strategy, launching two new apparel brands to cover different market segments and enhance risk resistance [8][9]. - The first brand, Ador, targets women aged 35-55, while the second focuses on female golfers aged 35 and above, creating synergies in customer profiles and marketing strategies [9][10]. - The company plans to leverage established infrastructure to launch additional brands in the future, enhancing operational efficiency [10]. CEO Commentary - The CEO emphasized that 2024 was a transformative year, focusing on profitability and strategic execution to enhance margins amid competition [4]. - Looking ahead to 2025, the company aims to maximize operational efficiency and allocate resources to new brands to strengthen design capabilities and boost brand awareness [5].