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SHANGHAI, China, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Mecox Lane Limited ("Mecox Lane" or the "Company") (Nasdaq:MCOX), which operates one of China's leading online platforms for apparel and accessories, today announced its unaudited financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Highlights
Internet platform net revenues decreased 40.0% year over year to $19.6 million, compared to $32.7 million in the second quarter of 2011
Net revenues decreased 33.6% year over year to $39.0 million, compared to $58.7 million in the second quarter of 2011
Gross profit margin decreased 2.1% year over year to 34.4% from 36.5% in the second quarter of 2011
Gross profit 1 decreased 37.4% year over year to $13.4 million from $21.5 million in the second quarter of 2011
Net loss was $4.9 million, compared to net loss of $3.4 million in the second quarter of 2011
Mr. Alfred Gu, Mecox Lane's director and chief executive officer, commented, "In the second quarter of 2012, we continued to take a conservative approach with respect to our core Internet business and strategically scaled back our online advertising. While prices for online advertising began to stabilize in the first quarter of 2012, they remain at historically high levels and, in our view, still do not represent a good return on investment. While we have experienced a substantial year-over-year decrease in average monthly unique visitors to our Internet platform, we have also spent significantly less on advertising as a percentage of our revenues. We will remain cautious in terms of advertising spending for our Internet business in order to better position ourselves once online advertising prices reach more attractive levels.
"In the second quarter of 2012, we continued to execute on our strategy of improving operating efficiency. Most notably, we are close to the completion of our new Wujiang Logistics Center, which we expect will be fully operational by the end of the third quarter of 2012. As we transition to the new location, we will seek ways to utilize the center's additional capacity to support our future growth.