The stock price has plummeted by 80%. Is Lazada going out of fashion?

Google Finance shows that the closing price of LightInTheBox on the 14th was $1.05, down 80% from its February high of $5.42. In fact, LightInTheBox's stock price has been in a state of oscillation and decline since the beginning of this year. The announcement of the third quarter financial report in early December caused its stock price to drop directly to $1.

The financial report shows that revenue in the third quarter was US$98.7 million, compared with US$100 million last year, a decrease of 1.3%; gross profit was US$43.9 million, compared with US$43.1 million in the same period of 2020; gross profit margin was 44.5%, compared with 43.1% in the same period of 2020; operating loss was US$6.6 million, compared with operating profit of US$1.6 million in the same period last year; net loss was US$6.1 million, compared with net profit of US$7.3 million in the same period last year.

He Jian, CEO of LightInTheBox, said that in the post-epidemic era, fluctuations in global consumption capacity and macroeconomic uncertainties have brought multi-dimensional impacts on the cross-border e-commerce industry . A series of challenges have also followed, including rising transportation costs, changes in international marketing policies, pressure from the EU's new VAT policy, and exchange rate fluctuations.

Indeed, many cross-border sellers have had a hard time this year. The editor sorted out the third-quarter financial reports of several major sellers and found that except for Anker Innovations, other companies are more or less not as good as they were in the previous year.

Among them, Anker Innovations' revenue in the third quarter was 3.054 billion yuan , a year-on-year increase of 22.63 % ; net profit was 237 million yuan, a year-on-year decrease of 7.4%. Cross-border Communication's revenue was 1.934 billion yuan, a year -on-year decrease of 50.32% ; net profit loss was about 64.44 million yuan, a year-on-year decrease of 164.28%. Tianze Information's revenue was 299 million yuan, a year-on-year decrease of 68% ; net profit loss was 207 million yuan, a year-on-year decrease of 2749%. Huading shares' revenue was 1.964 billion yuan, a year-on-year decrease of 20.31% ; net profit was 64.6 million yuan, a year-on-year increase of 26.77%;

However, LightInTheBox 's decline did not suddenly emerge at this time. After reaching US$382 million in 2014, LightInTheBox's annual revenue has been hovering between US$300 million and US$400 million since then.

Some analysts say that since 2015 , with the intensive introduction of cross-border e-commerce support policies and the emergence of various e-commerce platforms and independent sites, Lazada has gradually lost its advantages.

However, SHEIN, which was "born" at the same time as Lazada , is in a completely opposite situation. Its total revenue in 2020 was nearly US$10 billion, and its revenue increased by more than 100% for the eighth consecutive year.

Opportunities always exist, but in today's fiercely competitive environment, you have to be more careful if you want to eat meat.

LightInTheBox

Stock price plummets