Why LightInTheBox Holding Stock Lit Up

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese online retailer LightInTheBox Holding Co Ltd surged 17% today after its current-quarter outlook impressed Wall Street.

So what: LightInTheBox shares have plummeted over the past year on concerns over rapidly decelerating growth, but today's upbeat Q2 guidance naturally eases a bit of that worry. In fact, the updated revenue view represents a year-over-year increase of about 20%, suggesting that its competitive position is at least stable. 

Now what: Management now expects Q2 revenue of $86 million to $88 million, slightly ahead of its prior view of $84 million to $86 million. "We are encouraged by the better-than-expected results for the second quarter," said Chairman and Chief Executive Officer Alan Guo. "We have made good progress in recent quarters, particularly with respect to upgrading our product offerings and enhancing our customer experiences." Of course, when you couple today's double-digit rally with LightInTheBox's still-worrisome expense growth, staying on the sidelines seems prudent. 

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The article Why LightInTheBox Holding Stock Lit Up originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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