LightInTheBox(LITB) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported total revenue of $132 million for Q2 2022, an increase of 8% year-over-year from $122 million [9] - Revenue from apparel increased by 44% year-over-year to $109 million, representing 82% of total revenue compared to 62% in the same quarter of 2021 [9][6] - Gross margin improved to 55% from 47% a year ago, driven by higher margin from apparel sales [9][6] - Total operating expenses rose to $76 million from $61 million in the same quarter of 2021, with selling and marketing expenses increasing by $15 million year-over-year [10] - The net loss narrowed to $2 million on a sequential basis, with cash levels at $66 million, an increase of $6 million from the previous year-end [11] Business Line Data and Key Metrics Changes - Apparel has become the most popular category, now accounting for 82% of total revenues, up from 62% a year ago [6] - Revenues from apparel increased significantly, contributing to the overall growth and improved gross margin [9][6] Market Data and Key Metrics Changes - The company experienced record growth in European and North American markets despite global challenges [14] - The apparel category remains the best-performing category across all markets [14] Company Strategy and Development Direction - The company is focused on improving operational efficiency and customer experience, with ongoing investments in supply chain and logistics [7] - There is a strategic shift towards higher margin product categories, particularly apparel, to enhance profitability [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from COVID-19 resurgence, foreign exchange impacts, and global economic conditions but expressed confidence in steady growth for the second half of the year [5][11] - The company plans to continue investing in operational improvements to prepare for accelerated growth when the economic situation improves [8] Other Important Information - R&D expenses remained stable at $5 million, emphasizing the importance of enhancing customer shopping experience in the long term [10] Q&A Session Summary Question: Impact of world events on revenue and category mix - Management noted that despite global events, there was record growth in European and North American markets, with apparel being the best-performing category [14] Question: Reasons for increased marketing expenses - The increase in marketing expenses was attributed to global events and competitive challenges, with a focus on investing in the apparel category. Management expects to manage and reduce marketing expenses in the near future as customer loyalty grows [14]