LightInTheBox Holding Earnings: Here’s Why the Stock is Falling Now

LightInTheBox Holding Co. (NYSE:LITB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 22.28%.

LightInTheBox Holding Co. Earnings Cheat Sheet

Revenue: Was the same at $72.22 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: LightInTheBox Holding Co. reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $0.06. It missed the average revenue estimate of $75.79 million.

Quoting Management: Mr. Alan Guo, Chairman and CEO of LightInTheBox, stated, “We are excited to report second quarter 2013 financial results which reflect continued strong growth momentum and margin expansion. During the quarter, we grew net revenues by 52.6% year over year and our total number of customers increased by 140.0% to 1.2 million, demonstrating the growing awareness of our online retail platform. We expanded our geographic presence in all regions, led by triple digit percentage growth in both Europe and South America, notably from Russia and Brazil. We are particularly pleased with our year-over-year and sequential adjusted net income improvements driven by the continuing optimization of repeat customer purchases and effective cost controls.”

Key Stats (on next page)…

Revenue decreased 1.49% from $73.31 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from $0 to a profit $0.07. For the current year, the average estimate has moved up from $0 to a profit of $0.36 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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