LightInTheBox Reports Second Quarter 2025 Financial Results

Core Insights - LightInTheBox Holding Co., Ltd. has reported its fifth consecutive profitable quarter, indicating a successful transformation into a design-driven, direct-to-consumer apparel retailer [1][4] - The company has focused on proprietary brands to improve margins and stabilize its core business, leading to moderated revenue declines and positioning for growth in early 2026 [1][5] Second Quarter 2025 Financial Highlights - Total revenues for Q2 2025 were $58.9 million, a 15% decrease year over year, but an improvement from a 34% decline in Q1 2025 [4] - Gross profit was $38.8 million, with a gross margin improvement to 65.9% from 62.4% in the same quarter last year, driven by higher-margin proprietary product lines [4] - Operating expenses decreased by 14% year over year to $36.9 million, with fulfillment expenses down 13% to $4.4 million and selling and marketing expenses down 12% to $27.8 million [4] - Net income reached $2.0 million, up from $0.6 million in Q2 2024, marking a record profit since Q2 2024 [4] First Half 2025 Financial Highlights - Total revenues for the first half of 2025 were $105.9 million, a 25% decrease year over year, primarily due to the company's focus on margin preservation [4] - Gross profit for the first half was $69.4 million, with a gross margin improvement to 65.6% from 60.3% in 2024 [4] - Operating expenses decreased by 23% year over year to $67.4 million, with significant reductions in fulfillment and selling and marketing expenses [4] - Net income for the first half reached $2.1 million, compared to a loss of $3.2 million in 2024, showcasing a remarkable turnaround in profitability [4] Strategic Transformation - The company has shifted from low-margin commodities to bespoke, consumer-resonant products, boosting average selling prices and margins [5] - Proprietary brands, particularly Ador.com, are positioned to deliver designer-quality apparel at competitive prices, targeting women aged 35-55 [5] - The stabilization of the legacy business, with revenue declines moderating, signals a turning point, with expectations for overall revenue growth in early 2026 [5] Share Repurchase Program - The board of directors authorized a share repurchase program of up to $0.7 million, extended through December 31, 2025, with $0.3 million already repurchased as of September 5, 2025 [6]