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     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3376 Registered: 05-2011 Posted From: 65.35.45.47 Rating: N/A |
LITB is a China-based online retail platform offering a wide variety of products at affordable prices. LITB operates lightinthebox.com, miniinthebox.com and ezbuy.com. LITB offers apparel (by far its largest category at 32% of revs), home garden, wedding, electronics and other products. LITB sources many of its products directly from factories in China but also from South Korea, Singapore, Japan, Hong Kong and the US. LITB is in the process of building out its global supply chain and sourcing strategy. LITB has been posting strong growth. In Q3, revenue jumped 67% yr/yr to US$100 mln and that's expected to rise again to $120-135 mln in Q4 (results expected in April). These results reflect the growing success of LITB's revamped strategy, which is to focus on optimizing product and category mix, enhancing supply chain management and driving customer engagement. LITB is able to offer lower prices because it saves money with direct sourcing, low inventory levels and optimized logistics. Europe is LITB's largest market at 36% of revs with North America at 16% of revs. The stock has been ramping since early February when Vision Knight Capital disclosed a 6.1% stake. However, we caution that LITB strikes us as more of a speculative name because it's based in China and the stock trades under $5, so use caution. |