LightInTheBox(US:LITB)2019-03-29 16:26Financial Data and Key Metrics Changes - Net revenue decreased by 37% year-over-year to $50.5 million for Q4 2018, with product sales revenue at $55.4 million compared to $83.1 million in the same quarter of 2017 [6][11] - Gross margin improved to 34.6% from 29.7% during the same period last year, indicating better cost management [6][14] - Cash and cash equivalents increased slightly to $38.8 million from $37.5 million as of September 30, 2018 [6][15] - Loss from operations narrowed to $1.7 million from $3.6 million in the same quarter of 2017 [15] Business Line Data and Key Metrics Changes - Product sales in the apparel category were $20.3 million, down from $25.3 million in the same quarter of 2017, but accounted for a higher percentage of total product sales at 36.6% compared to 30.4% [12] - Total orders of product sales decreased to 1.3 million from 1.7 million in the same quarter of 2017 [11] Market Data and Key Metrics Changes - Product sales from Europe were $29.7 million, down from $44.5 million in the same quarter of 2017, representing 53.6% of total product sales [13] - Product sales from North America decreased to $16 million from $19 million, accounting for 28.8% of total product sales [13] - Product sales in the Gulf Cooperation Council (GCC) countries were $0.9 million, down from $1.1 million [13] Company Strategy and Development Direction - The company shifted focus from geographic markets to higher gross margin categories such as Home & Garden and Sports & Outdoors [7] - Initiatives include integrating high-quality suppliers, improving supply chain management, and optimizing product recommendation algorithms [7][9] - The integration of ezbuy is progressing well, with expectations of improved synergies in digital marketing, shipping, and order fulfillment [9] Management's Comments on Operating Environment and Future Outlook - Management expects the first quarter of 2019 to be impacted by seasonality and the ongoing integration of ezbuy, which may temporarily affect cash flow and bottom line [10][16] - Positive cash flow was generated in Q4 2018, with expectations for stabilization and improvement in the second quarter of 2019 [19] Other Important Information - The company will no longer provide a geographic breakdown of product sales starting Q1 2019, focusing instead on product categories with higher quality and gross margins [14] Q&A Session Summary Question: Can you provide more details on cash flow in Q4 and expectations for 2019? - Management confirmed that cash flow became positive in Q4 2018 and remained stable compared to Q3 2018, but expects a dip in Q1 2019 due to seasonality, with positive cash flow anticipated again in Q2 2019 [18][19]