蘭亭集勢 (LITB) 2026 Q2 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for LightInTheBox's second-quarter 2026 earnings conference call. (Operator Instructions) Today's conference call is being recorded.

I will now turn the call over to your host, Ms. Serena Huang. Please go ahead, Serena.

Thank you, operator. Hello, everyone, and welcome to LightInTheBox's second-quarter 2026 earnings conference call. The company's earnings results were released by Newswire services earlier today and are available on the company's IR website at ir.ador.com.

On the call from LightInTheBox today are Mr. Jian He, CEO; and Mrs. Wenyu Liu, CFO. Mr. He will provide an overview of the company's Q2 highlights, followed by Mrs. Liu, who will go over its financial results. Following our prepared remarks, we will open the call to questions.

Before we proceed, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations.

To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20-F filed with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

Please also note that LightInTheBox's earnings press release and this conference call include discussions of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures. Please refer to the company's earnings press release, which contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

Now, I'd like to turn the call over to LightInTheBox CEO, Mr. He. Please go ahead.

Good morning and good evening, everyone. Thank you for joining LightInTheBox's second-quarter 2026 earnings call. We are pleased to report excellent results for the first half and the second quarter of 2026.

Our first-half results provide a clear view of the progress we are making. Revenue increased 3% year over year to $108.8 million. Net income grew by approximately 28% to $2.7 million. Adjusted EBITDA also improved to $3.3 million.

In the second quarter, revenue declined marginally as we phase out the long-tail products. Despite a challenging external environment, gross margin landed resiliently at 66%. Through disciplined expense management, we remain profitable, delivering net income of $1.6 million and adjusted EBITDA of $1.9 million.

Over the past several years, we have steadily reshaped LightInTheBox and laid the foundation for sustainable profitable growth. From 2023 to 2024, we invested in our proprietary apparel brands and strengthened our in-house product development and the production capabilities. These investments gave us greater control over product differentiation, quality, and speed to market.

In 2025, we made meaningful progress in evolving the LightInTheBox online platform into a consumer lifestyle company by developing a deeper understanding of consumer preference and sentiment. We delivered differentiated products that enforced engagement and that built a stronger emotional connection with consumers.

This year, we are seeing another important shift. AI is rapidly becoming embedded in how people work, communicate, create, and make the decisions. We believe it will transform not only how consumers discover, evaluate, and purchase products, but also what they value and seek in their daily lives.

As technology becomes more deeply integrated into everyday life, we believe the design for emotional connection, self-expression, individuality, a better quality of life, and the memorable experiences will become even more important. As a lifestyle company, we are well positioned to address these evolving needs.

Our transformation from the AI era goes beyond adopting new technology tools. It requires a deeper understanding of consumer intent. Through our AI strategy, we are focused on using technologies to anticipate evolving consumer needs and connect them more effectively with product discovery, personalization, and curation. At the same time, we will continue to evolve our product strategy around enduring human inspiration or self-expression, emotional value, and memorable experience.

With that, I will now hand the call over to Wenyu to go through our financial results.

Thank you, Mr. He. Good morning and good evening, everyone. Before we go over our financials, please note that unless otherwise stated, all figures are presented in US dollars.

In the second quarter, our total revenues were $57 million, a modest 4% decrease year over year as we deliberately phased out long-tail products. This quarter was affected by a challenging external environment. Geopolitical disruptions increased pressure on cross-border logistics and related costs, while the weaker US dollar created additional foreign exchange headwinds for our global operations. Despite these factors, gross margin remained very stable at 66.1% compared with 65.9% a year ago, reflecting our continued efforts on higher-margin lifestyle products.

Total operating expenses in the second quarter decreased by 4% year over year to $35 million, of which fulfillment expenses decreased by 3% to $4 million. Selling and marketing expenses decreased by 4% to $27 million, and G&A expenses decreased by 5% to $5 million. Total operating expenses as a percentage of revenue decreased from 63% to 62%. Our net income in the second quarter reached $1.6 million compared to $2 million in the same quarter last year.

This concludes my remarks. We are now open to your questions. Operator, please continue.

(Operator Instructions) Cyril DuKing, Private Investor.

Hi, team. Thanks for taking my call. I have questions relating to two topics and the two topics are insider ownership and your brand matrix strategy. And I'll start with the first topic. I would appreciate if you could provide an update on how many shares are in the public float, and how much do insiders own of the company.

Thank you for your question. Related to insider share percentage, you may refer to our IR website for more details.

Okay.

(Operator Instructions)

He has another question.

Yeah, so I'll go ahead and ask. My second question was concerning the brand matrix strategy. At an investor conference earlier this year, the company stated that its three brands are Ador, Msglamor, and Skol. And I was wondering if you could provide any details about any of the brands. And also, you mentioned potentially adding maybe one to two brands a year if you find the right market, and just would appreciate any thoughts about plans for new brands in the -- this year or the next. Thank you.

Thank you for your question. For these three brands, we do see good progress in terms of top line as well as bottom line, and we do see repeat purchase rates are increasing. So these three brands are progressing really good. At the same time, we are preparing other brands as well to enhance the brand matrix.

Thank you.

Thank you. There are no further phone questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.