LightInTheBox (LITB) AI Stock Analysis

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LightInTheBox

(NYSE:LITB)

42Neutral

LightInTheBox's overall stock score reflects significant financial challenges, with declining revenues and persistent losses posing major risks. The strategic shift towards a brand-focused model has improved margins, but the notable revenue decline due to competition is a concern. Technical indicators offer mixed signals, and valuation metrics suggest the stock is overvalued relative to current performance. The lack of dividend yield further diminishes its appeal to investors seeking income.

LightInTheBox (LITB) vs. S&P 500 (SPY)

Market Cap

$32.92M

Dividend YieldN/A

Average Volume (3M)76.02K

Price to Earnings (P/E)―

Beta (1Y)-0.60

Revenue Growth-59.44%

EPS Growth73.87%

CountryUS

Employees667

SectorConsumer Cyclical

Sector Strength64

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.13

Shares Outstanding18,389,063

10 Day Avg. Volume134,138

30 Day Avg. Volume76,024

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.03

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

LightInTheBox Business Overview & Revenue Model

Company DescriptionLightInTheBox (LITB) is a global online retail company that offers a wide range of products directly to consumers around the world. Founded in 2007, the company specializes in apparel, small accessories and gadgets, and home and garden products. It operates through various platforms, providing customers with a convenient way to shop for a diverse selection of goods at competitive prices. LightInTheBox leverages its extensive network of suppliers and its efficient supply chain management to deliver products to customers in over 200 countries.

How the Company Makes MoneyLightInTheBox makes money primarily through the sale of products on its e-commerce platforms. The company's revenue model is based on a direct-to-consumer approach, where it lists a variety of items from clothing and accessories to electronics and home goods. Revenue is generated through the margins on the products sold, which are often sourced from manufacturers at lower costs and sold at a markup. Additionally, LightInTheBox benefits from economies of scale and efficient logistics operations that help reduce costs. The company may also partner with third-party sellers and brands, offering them a platform to reach global markets, which can provide an additional revenue stream through commissions or fees. Promotional activities, seasonal sales, and targeted marketing strategies also contribute to driving sales and increasing the company's profitability.

LightInTheBox Financial Statement Overview

Summary

LightInTheBox shows strong revenue growth, but persistent challenges in profitability and cash flow management. The negative equity and cash flow issues suggest financial instability, requiring strategic adjustments to improve financial health and sustain growth.

Income Statement

Positive

LightInTheBox's gross profit margin has improved over the years, reaching approximately 57.2% in 2023, indicating effective cost management. However, the company has been struggling with negative net and EBIT margins, with a net loss of $9.59 million in 2023, suggesting profitability challenges. Revenue growth is strong, with a 25% increase from 2022 to 2023, showing positive sales momentum.

Balance Sheet

Negative

The company's balance sheet shows a negative stockholders' equity of $8.38 million in 2023, raising concerns about financial stability and solvency. The high debt-to-equity ratio is not calculable due to negative equity. Total assets have decreased, and liabilities exceed assets, pointing to potential financial risks.

Cash Flow

Negative

Operating cash flow turned negative in 2023, indicating operational cash generation issues. Free cash flow has also declined significantly, reflecting potential liquidity concerns. The operating cash flow to net income ratio is negative, highlighting cash flow challenges.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
333.09M	629.43M	503.57M	446.10M	398.15M	243.63M
	Gross Profit
194.96M	359.93M	275.08M	206.71M	176.15M	97.60M
	EBIT
-8.34M	-10.39M	-14.24M	19.97M	14.41M	-16.05M
	EBITDA
-5.83M	-6.34M	-65.89M	23.27M	16.86M	1.88M
	Net Income Common Stockholders
-7.21M	-9.59M	-56.58M	13.13M	13.32M	-1.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.97M	66.42M	88.58M	55.94M	61.48M	37.74M
	Total Assets
39.84M	126.31M	164.81M	195.37M	158.03M	113.20M
	Total Debt
7.79M	7.00M	11.57M	11.65M	12.39M	12.27M
	Net Debt
-12.18M	-59.43M	-77.01M	-44.29M	-49.09M	-25.46M
	Total Liabilities
78.32M	134.69M	160.94M	131.49M	108.65M	81.32M
	Stockholders Equity
-38.48M	-8.38M	3.88M	63.76M	49.29M	31.83M
Cash Flow		Free Cash Flow
0.00	-21.86M	35.01M	-3.67M	25.45M	965.00K
	Operating Cash Flow
0.00	-20.71M	35.83M	-1.77M	29.31M	1.88M
	Investing Cash Flow
0.00	-1.08M	2.05M	-1.74M	-1.84M	-681.00K
	Financing Cash Flow
0.00	-2.29M	-43.00K	-1.32M	-3.69M	-551.00K

LightInTheBox Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.79

Price Trends

50DMA

1.26

Positive

100DMA

1.44

Positive

200DMA

2.32

Negative

Market Momentum

MACD

0.17

Negative

RSI

87.49

Negative

STOCH

97.63

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LITB, the sentiment is Neutral. The current price of 1.79 is above the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.26, and below the 200-day MA of 2.32, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 87.49 is Negative, neither overbought nor oversold. The STOCH value of 97.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LITB.

LightInTheBox Risk Analysis

LightInTheBox disclosed 52 risk factors in its most recent earnings report. LightInTheBox reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

LightInTheBox Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABA	81 Outperform	$258.33B	14.65	11.97%	0.91%	4.28%	28.42%
JD	78 Outperform	$58.10B	9.52	17.55%	2.08%	5.20%	77.60%
PDD	78 Outperform	$122.70B	8.57	45.06%	―	57.51%	82.28%
MELI	78 Outperform	$98.05B	52.98	51.50%	―	43.56%	91.72%
ETSY	63 Neutral	$4.67B	18.39	-39.97%	―	2.18%	5.77%
Sector *	59 Neutral	$11.48B	10.33	-0.84%	4.02%	1.25%	-16.06%
LITB	42 Neutral	$32.92M	―	114.41%	―	-59.44%	73.87%

* Consumer Cyclical Sector Average

Performance Comparison

LITB

LightInTheBox

1.79

-3.15

-63.77%

MELI

Mercadolibre

1,996.95

581.07

41.04%

36.42

11.00

43.27%

BABA

Alibaba

107.73

38.59

55.81%

ETSY

Etsy

43.60

-23.13

-34.66%

PDD

PDD Holdings

90.50

-23.79

-20.82%

LightInTheBox Earnings Call Summary

Earnings Call Date: Mar 25, 2025 | % Change Since: 70.48% | Next Earnings Date: Jun 20, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted a strategic shift towards a brand-focused model with the launch of Ador.com, resulting in improved margins and maintained profitability despite a significant revenue decline. The company successfully managed expenses, yet faced challenges from intense competition leading to reduced revenues.

Highlights

Improved Gross Margin

Gross margin improved to 61% in Q3 2024 from 60% in the same period last year, driven by the positive impact of new product lines including those for Ador.com.

Successful Expense Management

Achieved a 63% reduction in total operating expenses year-over-year, decreasing to $34 million from $92 million, due to effective operational efficiency enhancements.

Profitability Maintenance

Maintained profitability with a net income of $0.3 million compared to $0.1 million in the same quarter last year, with an adjusted EBITDA of $0.8 million, consistent with Q3 2023.

Strategic Shift to Brand-Focused Model

Launched new brand Ador.com to transition from e-commerce retailer to brand-focused apparel designer, offering high-quality clothing at competitive prices and achieving higher margins.

Lowlights

Significant Revenue Decline

Total revenues decreased by 63% year-over-year to $57 million, primarily due to intense competition in the global e-commerce industry.

Decrease in Gross Profit

Gross profit was $35 million, down from $92 million in the same quarter last year, reflecting the significant revenue decline.

Company Guidance

During the LightInTheBox Q3 2024 earnings call, the company outlined its strategic focus on profitability over market share amidst intense competition in the e-commerce industry. CEO Jian He highlighted the transformation from an e-commerce retailer to a brand-focused apparel designer with the launch of their new brand, Ador.com, aiming to deliver high-quality clothing at prices 50% lower than similar brands. The financial results presented by CFO Yuan Jun Ye revealed a 63% year-over-year decrease in total revenues to $57 million, with gross margins improving to 61% due to higher-margin product lines like Ador. The company also achieved a 63% reduction in operating expenses, with net income at $0.3 million, compared to $0.1 million in the previous year, and an adjusted EBITDA of $0.8 million, consistent with Q3 2023. These metrics underscore LightInTheBox's commitment to sustainable growth through strategic investments in new initiatives, efficiency improvements, and e-commerce services.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.