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LightInTheBox (LITB)
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LightInTheBox (LITB) AI Stock Analysis

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LITB

LightInTheBox

(NYSE:LITB)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
$2.00
▲(4.17% Upside)
The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative profitability. Technical indicators suggest bearish momentum, but the stock's low P/E ratio indicates potential undervaluation. The absence of earnings call data and corporate events limits further insights.
Positive Factors
Profitability Improvement
Achieving record profits indicates successful strategic shifts, enhancing long-term profitability and financial health.
Margin Expansion
Higher gross margins reflect better cost management and product mix, supporting sustainable earnings growth.
Strategic Transformation
Shifting to high-margin products and direct sales enhances competitive positioning and growth potential.
Negative Factors
Revenue Decline
Declining revenues indicate challenges in market demand or competition, potentially impacting long-term growth.
Negative Cash Flow
Inability to generate positive cash flow from operations limits reinvestment and financial flexibility.
Weak Balance Sheet
A weak balance sheet with negative equity and rising debt poses risks to financial stability and growth.

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

LightInTheBox Business Overview & Revenue Model

Company DescriptionLightInTheBox (LITB) is a global online retail company that specializes in providing a wide range of products, including apparel, accessories, electronics, and home goods. Founded in 2007 and headquartered in Beijing, China, LITB operates across multiple sectors, offering both consumer and business-to-business solutions. The company's core services include direct sales to consumers via its e-commerce platform, allowing customers worldwide to access a diverse selection of affordable products.
How the Company Makes MoneyLightInTheBox generates revenue primarily through e-commerce sales, where it sells products directly to consumers via its website and mobile applications. The company's key revenue streams include sales of fashion apparel, electronics, home and garden items, and other consumer goods. Additionally, LITB benefits from product sourcing and logistics optimization, enabling cost-effective pricing for customers. The company also engages in strategic partnerships with various suppliers and manufacturers, which enhances its product offerings and improves supply chain efficiency. Seasonal promotions and marketing campaigns further drive sales, contributing significantly to its overall earnings.

LightInTheBox Earnings Call Summary

Earnings Call Date:Dec 10, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Mar 31, 2026
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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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.

LightInTheBox Financial Statement Overview

Summary
LightInTheBox faces significant financial challenges, with declining revenues, negative profitability, and a weak balance sheet. The company needs to address its cost structure, improve cash flow generation, and strengthen its financial position to ensure long-term sustainability.
Income Statement
45
Neutral
LightInTheBox has experienced significant revenue volatility, with a sharp decline in revenue from 2023 to 2024. The company has struggled with profitability, as evidenced by negative net income and EBIT margins over the past few years. The gross profit margin remains relatively stable, but the net profit margin is negative, indicating challenges in managing costs and achieving profitability.
Balance Sheet
30
Negative
The balance sheet reveals a concerning negative stockholders' equity, indicating that liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and the company has been increasing its debt levels. This financial structure poses a risk to financial stability and limits flexibility.
Cash Flow
40
Negative
Cash flow analysis shows negative operating and free cash flows, highlighting challenges in generating cash from operations. The free cash flow to net income ratio is not favorable, indicating inefficiencies in converting income to cash. The company needs to improve its cash management to support operations and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue219.18M255.29M629.43M503.57M446.10M398.15M
Gross Profit140.50M153.49M359.93M275.08M206.71M176.15M
EBITDA7.09M-330.00K-6.37M-65.89M26.57M19.30M
Net Income5.43M-2.49M-9.59M-56.58M13.13M13.32M
Balance Sheet
Total Assets65.00M69.37M126.31M164.81M195.37M158.03M
Cash, Cash Equivalents and Short-Term Investments16.18M17.95M66.42M88.58M55.94M65.53M
Total Debt6.49M9.51M6.96M11.61M11.69M12.55M
Total Liabilities72.58M82.55M134.69M160.94M131.49M108.65M
Stockholders Equity-7.58M-13.17M-8.38M3.88M63.76M49.29M
Cash Flow
Free Cash Flow0.00-50.44M-21.86M35.01M-3.67M25.45M
Operating Cash Flow0.00-48.16M-20.71M35.83M-1.77M29.31M
Investing Cash Flow0.00-2.26M-1.08M2.05M-1.74M-1.84M
Financing Cash Flow0.00-586.00K-2.29M-43.00K-1.32M-3.69M

LightInTheBox Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.92
Price Trends
50DMA
2.42
Negative
100DMA
1.93
Positive
200DMA
1.62
Positive
Market Momentum
MACD
-0.21
Positive
RSI
38.00
Neutral
STOCH
40.11
Neutral
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 1.92 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.42, and above the 200-day MA of 1.62, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 38.00 is Neutral, neither overbought nor oversold. The STOCH value of 40.11 is Neutral, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$11.03B23.0715.33%10.16%18.29%
72
Outperform
$914.29M34.4114.56%31.20%38.38%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
47
Neutral
$35.12M6.45-34.42%
45
Neutral
$166.96M-5.28%7.09%8.28%
45
Neutral
$1.55B-102.25%-4.38%
43
Neutral
$217.10M-67.22%-8.07%-2206.16%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LITB
LightInTheBox
1.98
0.16
8.79%
FLWS
1-800 Flowers
3.41
-4.74
-58.16%
LQDT
Liquidity Services
29.84
3.97
15.35%
BZUN
Baozun
2.89
0.12
4.33%
JMIA
Jumia Technologies AG
12.26
8.39
216.80%
CART
Maplebear
42.79
-0.72
-1.65%

LightInTheBox Corporate Events

LightInTheBox Achieves Record Profit in Q3 2025 Amid Strategic Shift
Nov 12, 2025

LightInTheBox reported a record quarterly profit of $2.8 million for the third quarter of 2025, a significant increase from $0.3 million in the same period last year. This growth is attributed to the company’s dual-track strategy of expanding its direct-to-consumer apparel brands and revitalizing its legacy e-commerce operations with high-margin offerings like print-on-demand apparel. Despite a 3% decline in total revenues to $55.5 million, the company improved its gross margin to 66.9% and maintained stable operating expenses. The company’s strategic focus on margin preservation and customer insights has positioned it for renewed growth in 2026, with plans for broader channel expansion and enhanced marketing efficiency.

LightInTheBox Achieves Fifth Consecutive Profitable Quarter in Q2 2025
Sep 9, 2025

LightInTheBox reported its financial results for the second quarter of 2025, marking its fifth consecutive profitable quarter with a net income of $2.0 million, up from $0.6 million in the same quarter last year. Despite a 15% year-over-year revenue decline, the company has stabilized its core business by transitioning from low-margin commodities to higher-margin proprietary products, improving gross margins and achieving operational efficiency. This strategic transformation positions LightInTheBox for renewed growth in early 2026, with a focus on expanding its direct-to-consumer apparel lines and enhancing brand awareness.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 15, 2025