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spk03: Ladies and gentlemen, thank you for standing by for Light in the Box's third quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I would now turn the call over to your host, Ms. Jenny Hai. Please go ahead, Jenny.
spk02: Thank you, Operator. Hello, everyone, and welcome to Lighting the Box third quarter 2023 earnings conference call. The company's earnings results were released via Newswell Services earlier today and are available on the company's IR website at ir.lightingthebox.com. On the call from Lighting the Box today are Mr. Jian He, Chairman and CEO, Ms. Yuan Junye, Chief Financial Officer, and Ms. Wenyu Liu, Chief Growth Officer. Mr. He will provide an overview of the company's strategies and recent developments, followed by Ms. Ye, who will go over its financial results. Following our prepared remarks, we'll open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the safe harbor provisions of the U.S. private securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations. To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's firm 20F filed with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Now I'd like to turn the call over to Lighting the Box Chairman and CEO, Mr. He. Please go ahead.
spk00: Good morning and good evening, everyone. Thank you for joining our third quarter 2023 Earnings Conference call today. Amid the third quarters involving macroenvironment and moderate growth expectations, we continue to execute our core strategy with a focus on efficiency and profitability improvements. Our total revenue reached 154 million US dollars, met by apparel sales totaling 127 million US dollars. notably driven by improving operating leveraging and our cost management. Our bottom line turned positive in the third quarter, which is typically a slow season. During the third quarter, we continue to advance our branding strategies designed to highlight our values, as well as our reputation for high value for money offerings and seamless online shopping experience. We also improved our platform's features and layout to offer more convenient, smoother online shopping experience to our customers. We leveraged our innovative technologies and advanced data capabilities to observe customers' behaviors and habits and gain insights into their needs. Motivation and pain points and enhanced our brand force offering and functions accordingly. Our advanced technologies also enable us to improve operational efficiency across our supply chain, merchandising, marketing, logistics, and customer service management during the quarter. As we head towards the end of 2023 and beyond, We will remain focused on improving operational efficiency and pursuing profitability. We are navigating a complicated macro backdrop. We are in a rapidly evolving world. We are all in constant exchange, but we remain confident in the global e-commerce market's long-term growth potential. We will continue to execute our effective core business strategy. and employee agent tactics in response to external challenges while pursuing high-quality development. With that, I will now hand the call over to Yuanjun to go through our financial results.
spk01: Thank you, Mr. He. Good morning and good evening, everyone. Before we start the detailed discussions of our financials, please note that unless otherwise stated, all the financials we present today are in U.S. dollar terms. Now let me start with our financial highlights for the quarter. In the third quarter, our total revenues increased by 28% year-over-year to $154 million. Revenues from apparel grew by 28% year-over-year to $127 million, representing 83% of total revenues, compared with 82% in the same quarter of 2022. Furthermore, our gross margin improved to 60% from 58% a year ago thanks to the growth in apparel sales. Our total operating expenses were $92 million, compared with $70 million in the same period of last year. The increase was mainly due to the increased selling and marketing expenses. As we continue investing in building our brand awareness and driving top-line growth in the face of macroeconomic headwinds. Our ongoing dedication to enhancing efficiency continues to bear fruit. Fulfillment expenses and G&A expenses were 5% and 7% of total revenues, respectively, compared with 6% and 9%, respectively, a year ago. We are pleased that our bottom line turned positive for the third quarter. Net income reached 0.1 million, compared with net loss of 0.4 million in the same quarter of 2022. This is a meaningful achievement, particularly within such a challenging environment, validating our strategy in pursuit of profitability improvement. Our share repurchase program progressed well during the quarter, As of November 24, 2023, we have repurchased approximately 1.35 million ADS, totaling 1.8 million U.S. dollars. Finally, for our fourth quarter 2023 guidance, based on information currently available and business seasonality, we expect net revenues to be between 130 million and 145 million. To conclude, we will continue to focus on high-quality development while increasing operating efficiency across the board in the coming quarters. We believe the consistent execution of our solid financial fundamentals and core capabilities will support us in navigating the market dynamics as we strive to create sustainable, long-term value for all of our stakeholders. This concludes our prepared remarks. We'll be happy to take some questions now. Operator?
spk03: Thank you. If you wish to ask a question, please press star then 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask your question. As there are no questions now, I'd like to turn the call back over to the company for closing remarks.
spk02: Thank you once again for joining us today. If you have further questions, please feel free to contact Light in the Box Investor Relations through the contact information provided on our website or PNCity Financial Communications. Have a great day.
spk03: The conference has concluded. You may disconnect your line.
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