Mecox Lane Limited, a multi-brand and multi-channel retailer of apparel and accessories in China, announced its unaudited financial results for the third quarter ended September 30, 2013. The Company also announced the upcoming departure, for personal reasons, of Mr. Paul Bang Zhang, Mecox Lane's chief financial officer (CFO). The Company's vice president of finance, Mr. Michael Gui Sheng Liu, will serve as acting CFO.
Third Quarter 2013 Highlights -Net revenues decreased 40.5% year over year to $21.4 million, compared to $36.0 million in the third quarter of 2012 -Gross profit1 decreased 27.6% year over year to $9.5 million, compared to $13.1 million in the third quarter of 2012 -Gross margin was 44.3% in the third quarter of 2013, compared to 36.4% in the third quarter of 2012 -Net loss was $5.0 million, compared to net loss of $6.1 million in the third quarter of 2012 "We are moving forward in transitioning from an e-commerce focus to being a brand-oriented company that sells across multiple retail channels, both online and offline. In the third quarter, that overarching strategy included the opening of new, directly-operated physical stores that feature our latest private-label, fast-fashion products," said Mr. Alfred Gu, Mecox Lane's board director and chief executive officer. "At the same time, we've remained prudent in our overall spending and careful in the management of our costs, which helped to narrow our net loss." "Regarding our CFO transition, I want to thank Paul Zhang for his leadership, dedication, and many important contributions to Mecox Lane since he joined the Company in 2009. We wish Paul all the best in his future endeavors, and are happy that he will stay on through the end of December to assist in the transition of his responsibilities to Michael," said Mr. Gu. Mr. Liu will serve as acting CFO from the effective date of Mr. Paul Zhang's resignation until the Company identifies a permanent replacement. "Mr. Liu joined Mecox Lane in 2009, and has been a key member of our financial team since before our initial public offering in 2010. Prior to joining the Company, Mr. Liu worked in the finance department of McDonald's and Really Sports in China for seven years," added Mr. Gu. Third Quarter 2013 Results Due to the seasonal nature of its business, the Company presents its financial results on a year-over-year basis for the third quarter of 2013 and the third quarter of 2012 as follows. Total Net Revenues Total net revenues were $21.4 million in the third quarter of 2013, representing a decrease of 40.5% from $36.0 million in the third quarter of 2012. The decrease was primarily due to the decrease in net revenues from the Company's e-commerce channel, as well as the decrease in net revenues from the Company's physical stores.
