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Mecox Lane Limited Announces Second Quarter 2012 Results

Stocks in this article: MCOX

Operating Expenses

Total operating expenses were $18.8 million in the second quarter of 2012, representing a decrease of 30.1% from $26.9 million in the second quarter of 2011.

Selling, general and administrative expenses were $18.6 million in the second quarter of 2012, representing a decrease of 28.5% from $26.0 million in the second quarter of 2011, which was primarily due to the combined effects of a decrease in marketing costs as the Company remained conservative in its sales and marketing activity and a decrease in labor costs and office expenses.

Loss from Operations

Loss from operations was $5.4 million in the second quarter of 2012, compared to loss from operations of $5.4 million in the second quarter of 2011.

Net Loss and Loss per ADS

Net loss was $4.9 million in the second quarter of 2012, compared to net loss of $3.4 million in the second quarter of 2011. Non-GAAP net loss 3 was $4.3 million in the second quarter of 2012, compared to non-GAAP 3 net loss of $2.5 million in the second quarter of 2011. Basic and diluted loss per American Depositary Share ("ADS") attributable to Mecox Lane shareholders was $0.09 in the second quarter of 2012. One ADS represents seven ordinary shares.

Cash and Short-term Investments

As of June 30, 2012, Mecox Lane had cash and cash equivalents totaling $47.2 million, compared to $40.1 million as of December 31, 2011. Short-term investments on June 30, 2012 were $4.7 million compared to $20.6 million as of December 31, 2011, all of which were structured term bank deposits.

Conference Call Information

Mecox Lane management will hold an earnings conference call at 9 p.m. U.S. Eastern Time on August 14, 2012 (9 a.m. Shanghai/Hong Kong Time on August 15, 2012) to discuss results and highlights from the quarter and answer questions. A brief presentation to accompany the earnings call will be available on the Company's website, http://ir.m18.com/events.cfm, at 7:30 p.m. U.S. Eastern Time on August 14, 2012 (7:30 a.m. Shanghai/Hong Kong Time on August 15, 2012).

The dial-in numbers and passcode for the conference call are as follows:

U.S. Toll Free:   +1-855-500-8701
International:     +65-6723-9385
Hong Kong:     +852-3051-2745
Passcode:    18581784

Additionally, an archived webcast of this call will be available on the Investor Relations section of Mecox Lane's website at http://ir.m18.com.

About Mecox Lane Limited

Mecox Lane Limited (Nasdaq:MCOX) operates one of China's leading online platforms for apparel and accessories as measured by revenues in 2011. The Company offers a wide selection of fashion products through its www.m18.com e-commerce website and physical store network. Product offerings include apparel and accessories, home products, beauty and healthcare products and other products, under the Company's own proprietary brands, such as Euromoda and Rampage, as well as other selected third-party brands, including established international and Chinese brands in addition to independent and emerging brands. For more information on Mecox Lane, please visit http://ir.m18.com.

The Mecox Lane Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11140

Safe Harbor: Forward Looking Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "may," "will," "expects," "anticipates," "future," "intends," "plans," "believes," "aims," "estimates," "confident," "likely to" and similar statements. Among other things, the quotations from management in this press release, as well as the Company's strategic and operational plans, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's business strategies and initiatives as well as its business plans; the Company's future business development, results of operations and financial condition; changes in the Company's revenues and certain cost or expense items; the Company's expectations with respect to increased revenue growth and its ability to sustain profitability; the Company's products under development or planning; the Company's ability to attract customers and further enhance its brand recognition; trends and competition in the e-commerce and apparel and accessories industry; the e-commerce and apparel and accessories industry in China may not grow at the rates projected by market data, or at all; the failure of the markets to grow at the projected rates may have a material adverse effect on the Company's business and the market price of its ADSs; in addition, the rapidly changing nature of the e-commerce and apparel and accessories industry in China subjects any projections or estimates relating to the growth prospects or future condition of the Company's market to significant uncertainties. If any one or more of the assumptions underlying the market data turns out to be incorrect, actual results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks is included in the Company's annual report on Form 20-F as well as in its other filings with the Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.

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