LightInTheBox Holding Co. Ltd. reported its financial results for the first quarter of 2025, showcasing a strategic shift towards profitability. The company achieved a net income of $0.1 million, a significant turnaround from a $3.8 million net loss in the same period last year. Adjusted EBITDA also saw an improvement, recording an income of $0.6 million compared to a loss of $3.1 million in the previous year. Total revenues for the quarter were reported at $47.0 million, marking a 34% decrease year over year. This decline is attributed to the company's strategic focus on margin preservation over market share in a competitive landscape. Despite decreased revenues, the gross margin improved to 65.2%, up from 58.2% in the previous year, driven by a favorable mix of higher-margin proprietary products. Operating expenses were reduced by 33% to $30.5 million, reflecting effective cost management and operational efficiency. Fulfillment expenses decreased by 33% to $3.9 million, and selling and marketing expenses also declined by 33% to $21.9 million, despite an overall industry increase in traffic costs. General and administrative expenses were reduced by 32% to $5.0 million, with research and development expenses constituting $2.7 million, highlighting the company's focus on innovation. The company's strategic pivot to a brand-focused apparel business, with the introduction of proprietary brands like Ador, has resulted in four consecutive quarters of profitability. This shift emphasizes profitability and a data-driven design approach, resonating with consumers and driving higher repurchase rates and margins compared to its legacy e-commerce business.
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