Marbridge Daily

<- May 16, 2012 ->

Mecox Lane Records Q1 2012 Loss of USD 4 Mln

PR Newswire Asia, 5/15/12

Chinese B2C mail-order e-commerce company Mecox Lane (Nasdaq: MCOX) today announced its unaudited financial results for the first quarter ended March 31, 2012, with total net revenues down 22.8% YoY to USD 48.06 mln. The decrease was primarily due to the combined effects of a decrease in net revenues from the company's Internet platform and a decrease in net revenues from the directly operated stores as explained below.

Mecox Lane suffered a net loss of USD 4.24 mln, compared to a net loss of USD 3.88 mln in the corresponding period last year.

Net revenues from the Internet platform were USD 17.1 mln in Q1 2012, down 35.1% YoY from USD 26.3 mln in Q1 2011. The decrease was primarily attributed to a decrease in the number of average monthly unique visitors as a result of the company's decision to scale back Internet advertising.

Net revenues from the call center were USD 11.1 mln in Q1 2012, down 3.7% YoY from USD 11.5 mln in Q1 2011. The decrease was primarily attributed to a decline in orders placed through the call center, which is consistent with the market-wide trend in consumer behavior in China in favor of e-commerce shopping, along with the reduction in the company's catalog circulation.

Net revenues from directly operated stores were USD 5.0 mln in Q1 2012, down 15.0% YoY from USD 5.9 mln in Q1 2011. The decrease was primarily due to a decline in the number of directly operated stores from an average of 119 stores in the first quarter of 2011 to an average of 115 stores in Q1 2012.

Net revenues from franchised stores were USD 3.9 mln in Q1 2012, down 9.2% YoY from USD 4.3 mln in Q1 2011. The decrease in net revenues was primarily due to a decline in the number of franchised stores from an average of 325 stores in the first quarter of 2011 to an average of 275 stores in the first quarter of 2012.

To view Mecox Lane's full earnings report, please click here.

 
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