#None #LightInTheBox #Earnings #apparel

LightInTheBox Achieves Record Profitability in Q3 2025

LightInTheBox Holding Co., Ltd., a global leader in specialty retail, has reported remarkable financial results for the third quarter of 2025, demonstrating robust growth and effective strategic shifts. The company's shift towards direct-to-consumer (DTC) apparel brands has not only enhanced customer loyalty but also improved profit margins. This successful transition can be attributed to their proprietary designs and real-time customer insights that have redefined their market presence.

Financial Highlights of Q3 2025

The financial report released on November 12, 2025, reveals several key performance metrics:

• - Total Revenue: The company recorded revenues of $55.5 million, showing a year-over-year decline of 3%. This marks a significant improvement when compared to previous quarters (34% decline in Q1 and 15% in Q2 2025), indicating stabilization in its legacy e-commerce operations.
• - Gross Profit: LightInTheBox achieved a gross profit of $37.1 million, a rise from $34.8 million in the same period last year, with the gross margin improving to 66.9% from 61.1%. This was largely driven by higher-margin proprietary product lines as well as bespoke offerings such as print-on-demand apparel.
• - Net Income: Milestone net income reached $2.8 million, a stark contrast to $0.3 million in Q3 2024, representing the strongest quarterly profit since 2022.

Furthermore, the company’s Adjusted EBITDA surged to $3.3 million from $0.8 million in the corresponding quarter last year, highlighting a robust performance trajectory.

Year-to-Date Analysis

For the first nine months of 2025, total revenues dipped by 18% to $161.4 million, attributed primarily to the company's strategic focus on margin preservation in a fiercely competitive environment. However, gross margin saw an improvement from 60.5% to 66.0%, facilitated by introducing higher-margin products.

• - Operating Expenses: These were managed effectively, decreasing by 17% year-over-year to $101.9 million. Notably, fulfillment costs decreased by 18%, reflecting operational efficiencies.
• - Net Income for Year-to-Date: The company turned around a loss of $2.9 million in 2024 to a profit of $5.0 million in 2025.

Strategic Focus and Future Outlook

CEO Jian He remarked on the company’s ongoing transformation into a global DTC apparel retailer, emphasizing how the strategic dual focus has not only stabilized the legacy operations but also propelled growth in DTC brands. This adaptability in product offerings, including introducing specialized apparel like women's golf clothing, further underscores the company's commitment to engaging a broader customer base.

“We continue to deepen our DTC brand portfolio, allowing us to resonate more with our core demographic,” said He. LightInTheBox remains committed to leveraging customer insights for tailored offerings, thus bolstering their competitive position while aiming for growth in the coming year.

The company also announced the continuation of a share repurchase program, having repurchased approximately 340,333 ADSs, signaling investor confidence amid operational realignment.

In conclusion, as LightInTheBox paves the way for greater channel expansions and marketing efficiencies, it is regarded as well-positioned to unlock value for both customers and shareholders in an evolving retail landscape. Investors and stakeholders can expect a strategic roadmap that prioritizes sustainable growth as the company heads into 2026.