SHANGHAI, China, May 15, 2013 (GLOBE NEWSWIRE) -- Mecox Lane Limited ("Mecox Lane" or the "Company") (Nasdaq:MCOX), a leading brand and multi-channel retailer of apparel and accessories in China, today announced its unaudited financial results for the first quarter ended March 31, 2013.
First Quarter 201 3 Highlights
- Net revenues decreased 43.5% year over year to $21.0 million, compared to $37.1 million in the first quarter of 2012
- Gross profit 1 decreased 42.8% year over year to $8.1 million, compared to $14.2 million in the first quarter of 2012
- Gross margin was 38.6% in the first quarter of 2013, compared to 38.2% in the first quarter of 2012
- Net loss was $4.2 million, compared to net loss of $4.2 million in the first quarter of 2012; net loss includes a non-recurring gain of $6.0 million in the first quarter of 2013
Mecox Lane's Director and Chief Executive Officer Mr. Alfred Gu said, "With the launch of our new joint venture, Giosis Mecoxlane, in January of this year, the ownership and operation of our M18.com website transferred to the JV, which is under the control and management of Giosis Pte. Ltd. ("Giosis"). As expected, the change negatively impacted the website's user base and our e-commerce channel sales. Although we expect this transition period to continue for some time, we are optimistic based on the successful track record of the Giosis management team, which has already begun to transform M18.com into a brand-neutral online marketplace to attract a number of independent sellers and brands. Moreover, we believe the M18.com website will continue to serve as an effective sale channel for Mecox Lane products."Mr. Gu continued, "This transition allows us to refocus on our core strength of providing value-for-money, fast-fashion products to consumers across China. We now offer our products across a number of platforms, including our physical stores and popular third-party e-commerce websites, such as TMall.com, to increase our customer base and e-commerce channel revenues. Given that we operate in a rapidly evolving and competitive market, we will continue to improve our operating efficiency, control our costs and increase our investment in product R&D to better position ourselves as a leading multi-channel retail company in China."