NEW YORK - LightInTheBox Holding Co., Ltd. (NYSE: LITB), a global online retailer, has been notified by the New York Stock Exchange (NYSE) of non-compliance with market capitalization and shareholders’ equity standards. The notice, dated December 26, 2024, indicates that the company’s average total market capitalization fell below $50 million over a 30 trading-day period, and its stockholders’ equity was less than $50 million, which does not meet the requirements of Section 802.01B of the NYSE Listed Company Manual. According to InvestingPro data, the company’s current market capitalization stands at $23.16 million, with the stock down 80% over the past year.
In response, LightInTheBox has communicated its intention to address these deficiencies. On January 3, 2025, the company informed the NYSE of its plans to submit a business plan within 90 days that outlines how it will regain compliance within 18 months. If the NYSE approves this plan, LightInTheBox’s American Depositary Shares (ADSs) will remain listed during the 18-month period, subject to semi-annual reviews. Should the plan be rejected, the NYSE may proceed with delisting actions. InvestingPro analysis indicates the company’s overall financial health score is currently rated as WEAK, with particularly concerning metrics in price momentum and profitability.
The notification does not have an immediate effect on the trading of the company’s ADSs, which will continue on the NYSE, pending compliance with other listing requirements. Currently, LightInTheBox is in good standing with all other NYSE listing standards and the notice does not impact its business operations or SEC reporting obligations.
LightInTheBox, established in 2007, specializes in a variety of affordable lifestyle products and has recently shifted focus to proprietary apparel brands, launching Ador.com to cater to the demand for accessible higher-end fashion. The company also provides a suite of services to e-commerce companies, including advertising and logistics solutions. Despite current challenges, the company maintains impressive gross profit margins of 58.5%, though revenue has declined by nearly 49% over the last twelve months. For deeper insights into LITB’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US-listed companies.
This announcement includes forward-looking statements subject to risks and uncertainties, as described under the U.S. Private Securities Litigation Reform Act of 1995. LightInTheBox’s future plans and expectations are expressed in these statements, which involve risks that could cause actual results to differ materially.
The information provided is based on a press release statement from LightInTheBox Holding Co., Ltd.
In other recent news, LightInTheBox Holding Co., Ltd. received a non-compliance notice from the New York Stock Exchange (NYSE) due to its market capitalization falling below the required minimum average of $50 million over a consecutive 30 trading-day period. The company, however, is working on a plan to regain compliance within 18 months, as per NYSE procedures. In financial developments, LightInTheBox reported a 63% reduction in revenue to $57 million, but saw an increase in net income to $300,000 from the previous year’s $100,000, largely due to cost reduction measures and a shift towards niche markets. The company also launched a new brand, adao.com, focusing on direct-to-consumer apparel. Looking forward, LightInTheBox plans to continue developing new brand initiatives and expanding its e-commerce service offerings, with a strategic investment in AI expected to drive future growth. It’s important to note that these are recent developments and should be considered in the context of the company’s overall performance.
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