LightInTheBox Holding Co., Ltd.

Hello, ladies and gentlemen. Thank you for standing by for Light in the Box's first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Huang. Please go ahead, Serena.

Thank you, Operator. Hello, everyone, and welcome to Light in the Box first quarter 2026 earnings conference call. The company's earnings results were released via news file services earlier today and are available on the company's IR website at ir.ador.com. On the call from Light in the Box today are Mr. Jian He, CEO, and Mr. Su Haiqi, CFO, Mr. He will provide an overview of the company's Q1 highlights, followed by Mr. Ji, who will go over its financial results. Following our prepared remarks, we will open a 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 statements are subject to risks and uncertainties and 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 Form 20F filed with the SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that light-in-the-box earnings press release and this conference call include discussions of unaudited gap financial measures as well as unaudited non-gap financial measures. Please refer to the company's earnings press release which contains a reconciliation of the unaudited non-gap measures to the unaudited gap measures Now I'd like to turn the call over to Lighting the Box CEO, Mr. He. Please go ahead.

Good morning and good evening, everyone. Thank you for joining Lighting the Box first quarter 2026 earnings call. We are pleased to report an exciting first quarter results. Continuing the time run from last year, we achieved our eighth consecutive profitable quarter and a record first quarter profit of $1.2 million since 2022. This compared with just a profit of $1.1 million in the first quarter of last year. Please note that Q1 is typically our weakest period due to the seasonality of our business. Q2 picked up significantly as the season increased goes into spring and summer. Q3 may come down a little and Q4 picks up again to dig ahead of Christmas. We are also proud of the fact that Q1 marked our second consecutive quarter of year-over-year revenue growth. This revenue is returning to double-digit growth, increasing by 11% to 52 million. Our branded apparel business continued to gain strong momentum, growing over 81% year-over-year, and already accounting for 24% of total revenue, up from 15% in the first quarter of 2025. These results reflect the continued successful execution of our strategy of involving the lighting box on that platform into a consumer lifestyle company. are offering highly customized products that create deep emotional resonance for festivals, holidays, and special occasions. Combined with our brand-match strategy across women's fashion, golf apparel, and light party jerseys, they are driving stronger engagement in the customer loyalty. In summary, We had a very good head start for 2026. We sustained profitability, disciplined cost control, and ongoing share repatriation program. We believe we are well positioned to pursue continual revenue and profit growth, as well as greater shareholder value through the rest of 2026. Is there any low-hands call over to Shuhai? to go through our financial results.

Thank you, Mr. He. Good morning and good evening, everyone. Before we go over our financials, please note that unless otherwise stated, all figures are presented in U.S. dollars. As our CEO mentioned in his remarks, we delivered excellent first quarter results in 2026. In the first quarter, our total revenues were $52 million, up 11% year-over-year. Compared to the year-over-year decrease in the first three quarters of last year, this marked our second consecutive top-line growth. We have successfully engineered a sustained business turnaround not only on profit but also on revenues. The first quarter gross profit was $34 million, up 10% year-over-year. Gross margin remained relatively stable at 65%. Total operating expenses in the first quarter increased 7% year-over-year to $33 million, off-reach fulfillment expenses increased by 5% to $4 million, reflecting the growth in top-line revenues. Selling and marketing expenses increased by 13% to $25 million, while general and administrative expenses decreased by 15% to $4 million. Total operating expenses as a percentage of revenue decreased from 65% to 63%. Our net income in the first quarter reached $1.2 million compared to just $0.1 million in the same quarter last year, marking a record first quarter profit since 2022. The overall We had a remarkable turnaround year in 2025 and are continuing the progress and momentum going into 2026 as reflected in our Q1 results. We remain confident that 2026 will be another successful record-setting year. This concludes my remarks, and we are now open to your questions. So, operators, continue.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the headset to ask your question. Once again, please press star 1 on your telephone if you wish to ask a question. We'll now pause for a moment for any questions to register. There are no questions at this time. I'll now head back to Ms. Wong for closing remarks.

Thank you once again for joining us today. If you have further questions, please feel free to contact Light in the Box Industrial Relations through the contact information provided on our website. Have a great day.