Chinese online apparel and accessory retailer Mecox Lane Ltd. (NASDAQ: MCOX) reported a net loss of USD 6.2 million for the quarter ended June 30 this year.
It released unaudited financial results for the quarter on August 14 and according to the results, the net operating revenue was USD 21.8 million, down 44.1 percent from a year ago. And the net loss was USD 6.2 million, compared to USD 4.9 million a year earlier.
It had three major sales channels, namely online shops, entity stores, and MOTO (mail order telephone order), but saw revenue reaped through each of them drop in the quarter. In detail, the net operating revenue from ecommerce business reached USD 6.7 million, down 65.8 percent from a year ago and accounting for about 30 percent of the total, compared to 45 percent in the fourth quarter of 2012. It debuted on the US bourse in the fourth quarter of 2010 and it the quarter, it saw operating revenue form the business touch USD 50.1 million, accounting for 78 percent of the total. That from self-run entity stores hit USD 3.1 million, down 36.8 percent. And the figure from calling center business was USD 10.5 million, down 7.8 percent.
It mainly attributed the sharply dropped net operating revenue from self-run entity stores to largely slid entity store size. It had 109 self-run entity stores on average in the second quarter of 2012 and the figure dropped to 60 in the second quarter of this year. And actually, the single-store sales rose year on year. It had 267 franchise stores in the second quarter of last year and saw the size stand at 256 in the second quarter of this year. However, the net operating revenue fell 51.7 percent from a year ago to USD 1.5 million. It began issuing less commodity categories from January this year, an effort to suspend the issue gradually. And hurt by this, the operating revenue from calling center business dropped.
Zhang Bingliang, general manager with a Shanghai-based consulting firm, pointed out that all the figures indicated that the Nasdaq-listed firm performed poorly in the three months and the sharply dropped net operating revenue from franchise stores signaled that its management on franchise stores had been almost out of the control.
Sources said recently that it had been at the risk of delisting from the US bourse due to a continuous loss-making operation and due to the dreary prospect, the No.1 shareholder of it had been weighing a plan to quit it.