LightInTheBox crashes due to earnings, guidance; Vipshop also off

In addition to missing Q3 estimates, LightInTheBox (LITB -19.8%) is guiding for Q4 revenue of $75M-$77M, below an $83.1M consensus. The Chinese e-commerce firm says sales in its apparel category (the company's second-largest) are "undergoing adjustments," and that it's enhancing its offerings in this space by "placing greater emphasis on other product lines beyond wedding and special occasion wear."

Gross margin was 43.9%, up 160 bps Y/Y but down 210 bps Q/Q. Total customers amounted to 1.3M (+75% Y/Y), up from 1.2M in Q2, and total orders rose 80% Y/Y to 1.6M.

Heavy spending also pressured EPS: Sales/marketing spend rose 53.8% to $21.6M, and fulfillment spend rose 52% Y/Y to $3.8M. Both growth rates outpaced rev. growth of 33.4%.

Europe accounted for 58.8% of revenue, down from 61% in Q2 but up from 40.8% in the year-ago period.

Peer Vipshop (VIPS -5.1%), which jumped last week after providing a Q3 beat and strong Q4 guidance, is also off. HSBC started coverage at Overweight this morning.

Q3 results, PR

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Comments (2)
  • Jonathan Bluhm
    , contributor
    Comments (391) | Send Message
    Might be a good entry point today with this latest drop in share price. Everything in this report looks like good news to me, the only negative is the company can't properly guide estimates? Margins, revenue, customers, marketing - all growing at a good pace. The extra spending will pay off, I think (LITB) is the next Amazon (well, maybe that's a reach - but if it gets to 1/10th of Amazon's market cap this will have been a multibagger)
    19 Nov 2013, 11:04 AM Reply Like
  • spydrman
    , contributor
    Comments (31) | Send Message
    Agree entry or add opportunity.
    19 Nov 2013, 12:26 PM Reply Like
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