Dangdang (DANG) expects Q3 revenue of RMB1.52B-1.53B ($249.6M-$251.2M), below prior guidance of RMB1.584B ($260.1M) and a consensus of $261.5M. (PR)
The Chinese e-commerce attributes the cut to a "decision to reduce sales of certain lower margin products," as it continues transitioning from being an online bookseller to "an integrated online shopping mall targeting mid- to high-end customers."
One silver lining: As a result of Dangdang's decision, gross margin is expected to be in a range of 17.5%-17.7%, up from Q2's 17.1% and the year-ago period's 15.2%. Net loss is expected to decline to RMB27M-29M from 63.9M in Q2 and 100.1M a year ago.
Shares closed today not far removed from their 52-week high, in spite of falling in August in the wake of Dangdang's Q2 report.