Online retailer E-Commerce China Dangdang Inc. said Tuesday that its third-quarter revenue may come in lower than previously anticipated and it expects to post a loss for the period.
The Chinese Web retailer, which sells general merchandise from books to personal care products, said it decided to reduce sales of some of its lower-margin products and that ate into its revenue.
The company now expects revenue of roughly 1.52 billion to 1.53 billion Chinese yuan ($249.4 million to $251.1 million) for the period, down from its previous forecast of 1.58 billion yuan ($259.3 million). Analysts polled by FactSet were anticipating revenue of $262.9 million.
The company anticipates a loss of 27 million to 29 million yuan ($4.4 million to $4.8 million).
Dangdang Executive Chairwoman Peggy Yu Yu said that while the revenue is below previous forecast, the business was better served by reducing some low margin general merchandise, helping to improve its margins.
"We are optimistic about our future prospects as we continue to transform our company from an online bookstore into an integrated online shopping mall targeting mid- to high-end customers," Yu Yu said in a statement.
The company expects to provide more details on the period when it reports its financial results in November.
Shares of the company sank $1.32, a more than 11 percent drop, to $10.28 by midmorning.