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.
Q3 results, PR