Lightinthebox at Mid-Year: 3 Things to Know

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Here's what investors in the company need to know for the rest of 2014.

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Lightinthebox at Mid-Year: 3 Things to Know

  1. 1. LightInTheBox in 2014: 3 Things to Know
  2. 2. 1. Disappointing While Others Impress Since beating estimates in its first earnings report as a public company last year, LightInTheBox has chronically underperformed expectations. The same hasn’t been the case for Dangdang and VIPShop.
  3. 3. Rapidly Decelerating Revenue Growth
  4. 4. Dangdang’s Growth: Strong and Sustainable
  5. 5. Vipshop’s Revenue Growth: Through the Roof LightInTheBox simply hasn’t been putting up the same numbers as its Chinese peers.
  6. 6. 2. A Surprise Announcement LightInTheBox surprised Wall Street by announcing that it was revising its second-quarter revenue estimates upward. June 27, 2014
  7. 7. 2. A Surprise Announcement • Previously, the company had predicted revenue growth of 18% to $85 million. • The new estimate is for revenue growth of 20% to $87 million. • In reality, this is a very small change. Wall Street was probably just happy for some good news. • Long-term investors should see that growth is still slow compared to what was happening before the company went public.
  8. 8. 3. What to Watch Moving Forward • I wouldn’t worry much about reaching profitability at this point. • Instead, continued revenue growth north of 20% is going to be the most important thing for investors to look for. • Without this, any investments in infrastructure will be wasted.
  9. 9. Remember, investing in China doesn’t always mean investing in Chinese companies. American companies have plenty of exposure abroad. Apple is one such company. Some early viewers of Apple’s new product are claiming its everyday impact could trump the iPod, iPhone, and the iPad. One small company makes Apple's gadget possible. To get the name of that company, click below.

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