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Lightinthebox.com LightInTheBox Reports Third Quarter 2021 Financial Results December 2 , 2021 SHANGHAI , Dec. 2 , 2021 / PRNewswire / -- LightInTheBox Holding Co. , Ltd. ( NYSE : LITB ) ( " LightInTheBox " or the " Company " ) , a cross - border e - commerce platform that delivers products directly to consumers around the world , today announced its unaudited financial results for the third quarter ended September 30 , 2021 . Third Quarter and First Nine Months 2021 Financial Highlights Three Months Ended September 30 , In millions , except percentages 2020 September 30 , 2021 Year - over- Year % Nine Months Ended Year - over- Change September 30 , 2020 September 30 , 2021 Year % Change Total revenues $ 100.0 $ 98.7 -1.3 % $ 265.4 $ 333.0 25.5 % - Apparel sales $ 44.4 $ 61.9 39.6 % $ 95.7 $ 196.3 105.1 % Gross margin 43.1 % 44.5 % 43.9 % 46.0 % Net income / ( loss ) $ 7.3 $ Adjusted EBITDA $ 12.7 $ ( 6.1 ) ( 5.1 ) $ 16.5 $ 4.7 -71.5 % $ 23.3 $ 11.7 -49.8 % In millions Cash , cash equivalents and restricted cash As of December 31 , 2020 As of September 30 , 2021 $ 65.5 $ 50.2 Mr. Jian He , Chief Executive Officer of LightInTheBox , commented , " We experienced certain cost pressures and challenging global economic conditions this quarter , which caused our results to be materially affected by external factors including higher than anticipated digital advertising cost , new European laws on VAT and market regulation on certain products , and changes in consumer sentiment and spending . Our operational costs were also affected by rising shipping and delivery cost , and fluctuation in foreign exchange rates . Despite the challenging economic environment , we are always optimizing our product mix especially for the higher margin apparel categories compared to standard categories like electronics . Our strength and experience in apparel has given us the capabilities to quickly respond to market uncertainties and meet the demand of evolving fashion trends . We remain committed to our proven growth strategy that capitalizes on our advantages in value - added services for online purchases and provides consumers with a well curated variety of globally sourced quality products . Total revenues for the third quarter were $ 98.7 million , compared with $ 100.0 million in the same quarter of 2020 , while gross margin improved to 44.5 percent . During the third quarter , apparel sales represented 64.5 % of our total product sales , up by 39.6 % to $ 61.9 million in the third quarter of 2021 compared with $ 44.4 million of the same quarter in the prior year , which was largely attributed to our continuous efforts in R & D to provide trending fashion insights to our designers and suppliers . We remain firmly on course with our growth momentum and our values and are always reaching beyond our customers ' expectations as their comprehensive and reliable shopping destination of choice . " Third Quarter 2021 Financial Results Total revenues remained relatively stable year - over - year , which were $ 98.7 million and $ 100.0 million in the third quarter of 2021 and 2020 , respectively . Revenues generated from product sales were $ 96.0 million , compared with $ 95.4 million in the same quarter of 2020. Revenues from service and others were $ 2.7 million , compared with $ 4.6 million in the same quarter of 2020. Included in product sales , revenues from apparel increased by 39.6 % to $ 61.9 million in the third quarter of 2021 , compared with $ 44.4 million in the same quarter of 2020. Revenues from apparel represented 64.5 % of total product sales in the third quarter of 2021 , and 46.5 % in the same quarter of 2020 . Total cost of revenues was $ 54.8 million in the third quarter of 2021 , compared with $ 56.9 million in the same quarter of 2020. Cost for product sales was $ 54.0 million in the third quarter of 2021 , compared with $ 53.9 million in the same quarter of 2020. Cost for service and others was $ 0.8 million in the third quarter of 2021 , compared with $ 3.1 million in the same quarter of 2020 . Gross profit in the third quarter of 2021 was $ 43.9 million , compared with $ 43.1 million in the same quarter of 2020. Gross margin was 44.5 % in the third quarter of 2021 , compared with 43.1 % in the same quarter of 2020. The increase in gross margin was a result of the Company's continuous efforts to optimize our product mix . Total operating expenses in the third quarter of 2021 were $ 50.5 million , compared with $ 41.5 million in the same quarter of 2020 . • Fulfillment expenses in the third quarter of 2021 were $ 7.2 million , compared with $ 6.7 million in the same quarter of 2020. As a percentage of total revenues , fulfillment expenses were 7.3 % in the third quarter of 2021 , compared with 6.7 % in the same quarter of 2020 and 6.2 % in the second quarter of 2021 . • Selling and marketing expenses in the third quarter of 2021 were $ 34.0 million , compared with $ 26.9 million in the same quarter of 2020. As a percentage of total revenues , selling and marketing expenses were 34.4 % for the third quarter of 2021 , compared with 26.9 % in the same quarter of 2020 and 35.6 % in the second quarter of 2021 . • G & A expenses in the third quarter of 2021 were $ 9.3 million , compared with $ 7.9 million in the same quarter of 2020. As a percentage of total revenues , G & A expenses were 9.4 % for the third quarter of 2021 , compared with 7.9 % in the same quarter of 2020 and 7.8 % in the second quarter of 2021. Included in G & A expenses , R & D expenses in the third quarter of 2021 were $ 5.5 million , compared with $ 3.5 million in the same quarter of 2020 and $ 5.1 million in the second quarter of 2021 . Loss from operations was $ 6.6 million in the third quarter of 2021 , compared with income from operations of $ 1.6 million in the same quarter of 2020 . Other income , net in the third quarter of 2021 was $ 0.4 million , compared with $ 9.0 million in the same quarter of 2020. Included in other income , net in the third quarter of 2020 , $ 8.9 million was derived from change in fair value on our equity investment . The gain in fair value change on our equity investment , after respective income tax of $ 3.2 million , was $ 5.7 million . Net loss was $ 6.1 million in the third quarter of 2021 , compared with net income of $ 7.3 million in the same quarter of 2020 . Net loss per American Depository Share ( " ADS " ) was $ 0.05 in the third quarter of 2021 , compared with net income per ADS of $ 0.07 in the same quarter of 2020. Each ADS represents two ordinary shares . In the third quarter of 2021 , the Company's basic weighted average number of ADSS used in computing the net income per ADS was 112,160,252 . Adjusted EBITDA , which represents income / ( loss ) from operations before share - based compensation expense , interest income , interest expense , income tax expense and depreciation and amortization expenses , was negative $ 5.1 million in the third quarter of 2021 , compared with $ 12.7 million in the same quarter of 2020 . As of September 30 , 2021 , the Company had cash and cash equivalents and restricted cash of $ 50.2 million , compared with $ 65.5 million as of December 31 , 2020 . First Nine Months of 2021 Financial Results