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 equity capital standards. The notice, dated December 26, 2024, indicates that the company’s average total market capitalization has fallen below $50 million over a 30-trading day period and its equity is less than $50 million, which does not meet the requirements of Section 802.01B of the NYSE Listed Companies Manual . According to InvestingPro According to the data, the company’s current market capitalization is $23.16 million, with shares down 80% over the past year.
In response, LightInTheBox announced its intention to address these shortcomings. On January 3, 2025, the company notified the NYSE of its plans to submit a business plan within 90 days outlining how it will regain compliance within 18 months. If the NYSE approves this plan, LightInTheBox’s American Depositary Shares (ADS) will remain listed for a period of 18 months, subject to semi-annual reviews. If the plan is rejected, the NYSE may proceed with delisting actions. InvestingPro analysis shows that the company’s overall financial health rating is currently rated as POOR, with particularly worrying indicators in price momentum and profitability.
The notice has no immediate effect on trading in the Company’s ADSs, which will continue on the NYSE pending the fulfillment of other listing requirements. Currently, LightInTheBox is in good standing under all other NYSE listing standards and the notice does not affect its business operations or SEC reporting obligations.
LightInTheBox, founded in 2007, specializes in a range of affordable lifestyle products and recently shifted its focus to its own clothing brands, launching Ador.com to meet the demand for affordable high-end fashion. The company also provides a suite of services to e-commerce businesses, including advertising and logistics solutions. Despite its current challenges, the company maintains impressive gross profit margins of 58.5%, even though revenues have fallen by nearly 49% over the past twelve months. For deeper insight into LITB’s financial health and future prospects, investors can access extensive analysis via InvestingProin-depth research reports available for over 1,400 US publicly traded companies.
This announcement includes forward-looking statements that are subject to risks and uncertainties, as described in the US Private Securities Litigation Reform Act of 1995. LightInTheBox’s future plans and expectations are expressed in these statements, which include risks that could could cause actual results to differ materially.
The above information is based on the press release of LightInTheBox Holding Co., Ltd.
In other recent news, LightInTheBox Holding Co., Ltd. received a notice of non-compliance from the New York Stock Exchange (NYSE) due to its market capitalization falling below the required minimum average of $50 million over 30 consecutive trading days. The company, however, is working on a plan to realign within 18 months, in accordance with NYSE procedures. In terms of financial development, LightInTheBox reported a 63% decrease in revenue to $57 million, but saw an increase in net income to $300,000 from last year’s $100,000, mainly due to cost-cutting 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 to develop new brand initiatives and expand its e-commerce service offerings, with a strategic investment in AI expected to drive future growth. It is 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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