Good morning everyone, and welcome to the fourth quarter and full year 2021 earnings conference call for LightInTheBox Holding Co., Ltd. Today's conference is being recorded. At this time, I'll turn the call over to Mr. Rene Vanguestaine for opening remarks and introductions. Please go ahead, sir.
Thank you, Amber. Hello everyone, and welcome to LightInTheBox fourth quarter and full year 2021 earnings conference call. The company's earnings results were released earlier today and are available on the company's IR website as well as through PR Newswire. Today, you will hear from LightInTheBox CEO, Mr. Jian He, who will give an overview of the company's strategies and recent developments, followed by Ms. Yuanj un, the company's Chief Financial Officer, who will go over financial results. They will be available for Q&A at the end. Before we proceed, I would like to remind you of our safe harbor statement. Please note that the discussion today may contain certain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. To understand the factors that could cause results to materially differ from those in the forward-looking statements, please refer to our Form 20-F filed with the U.S. Securities and Exchange Commission on April 21, 2021. We do not assume any obligation to update any forward-looking statements except as required under applicable law. At this point, I'd like to turn the call over to Mr. He. Mr. He, please go ahead.
Thanks, Rene, and thank you everyone for joining us today. Let me start by acknowledging and then thanking all the team for all their efforts and the dedication to the company. 2021 was an eventful year for us and for the overall cross-border online retail sector. We faced various unprecedented challenges and pressures, including very competitive environments dampened by decelerating economic growth, high inflation concerns, and foreign exchange fluctuation, increasing marketing spend and shipping cost, new laws in Europe related to VAT and the regulations on electronic products. Despite of the unprecedented economic environment, we achieved 12% top-line growth year-over-year, from $398 million in 2020 to $446 million in 2021, and remained stable in our bottom line. Behind these numbers, our growth strategies have been fueled by our strong mission to fulfill our customers' needs and improve their shopping experience.
Some of our highlight achievements in 2021 include. We continued to increase the volume of apparel sales within our product mix as customers shop for clothes online based on our customer reviews, competitive price matching, wide selections to choose from, and the time-saving benefits of sorting everything they need through one global platform. At the end of fourth quarter of 2021, our apparel category reached over 70% of our total product sales. With the increase in apparel sales, our gross margin increased to 47.2% in the first quarter of 2021. We continued to build a resilient supply chain to drive production agility and visibility, and to provide our customers with the best value for money and globally sourced products.
Investment in R&D in 2021 increased by 34% year-over-year from $15 million-$20 million, which we believe will give us the edge in retail e-commerce to stay ahead of trends and capture industry insights for all the suppliers and the designers. Our ability to successfully navigate the challenge of 2021 is a testament to the effectiveness of our proven growth strategies. After years of building a solid foundation, serving over 140 countries, the fundamentals of the business are healthy and sustainable. Looking ahead, although there are still uncertainties and volatile factors that may impact our business, we have proven that we have the know-how to stay in the middle of these challenges. We will continue to improve on operational efficiency and value-added services for all the customers.
With the easing of travel restrictions around the world and many countries resuming normally. We are well positioned to capture more growth opportunity with our deep expertise in cross-border e-commerce. I believe we will achieve sustainable growth and better serve the fast-growing and evolving needs of our customers in 2022. I'll now turn the call over to Yuanjun to go through the financial results.
Thank you, Mr. He, and thank you everyone for joining the call. I'll now review our financial results for the fourth quarter. Please be reminded that all numbers quoted are in US dollars. Total revenues was $113.2 million, down 14.8% year-over-year from $132.7 million. Product sales were $110.5 million versus $129.5 million in the same period of 2020. Revenues from services and others was $2.7 million, compared with $3.2 million a year ago. Included in product sales, revenue from apparel increased 25.2% to $77.9 million in the fourth quarter of 2021, compared with $62.2 million in the same quarter of 2020.
Revenue from apparel as a percentage of total product sales improved to 70.5% from 48.1% in the same quarter of 2020. Gross profit was $53.4 million, compared with $59.6 million during the same period of 2020. Gross margin was 47.2%, up from 44.9% a year ago, primarily due to our continued efforts to optimize our product mix. Total operating expenses was $60.9 million, compared with $62.3 million during the same quarter of 2020. Fulfillment expenses were $7.5 million, compared with $8.8 million the same quarter of 2020.
As a percentage of total revenue, fulfillment expenses were 6.7% compared with the same 6.7% in the same quarter of 2020 and 7.3% in the third quarter of 2021. Selling and marketing expenses were $41.1 million, compared with $44 million in the same quarter of 2020. As a percentage of total revenue, selling and marketing expenses were 36.3% compared with 33.1% in the same quarter of 2020 and 34.4% in the same quarter of 2021. G&A expenses were $12.5 million, compared with $10.5 million in the same quarter of 2020.
As a percentage of total revenues, G&A expenses were 11.1% compared with 7.9% in the same quarter of 2020 and 9.4% in the third quarter of 2021. Included in the G&A expenses, R&D expenses were $4.9 million, compared with $4.8 million in the same quarter of 2020 and $5.5 million in the third quarter of 2021. Adjusted EBITDA, which represent income loss from operations before share-based compensation expense, interest income, interest expense, income tax expense, and depreciation and amortization expenses, were income of $16.2 million in the fourth quarter of 2021, compared with the loss of $0.5 million in the same quarter of 2020.
Net income was $8.7 million, compared with net loss of $3.2 million in the same quarter of 2020. Net income per ADS was $0.08, compared with net loss per ADS of $0.03 in the same quarter of 2020. As of December 31, 2021, we have cash and cash equivalents and restricted cash of $59.6 million, compared with $65.5 million as of December 31, 2020. Now let me walk you through our 2021 full year financial results very briefly. Total revenues increased by 12% year-over-year to $446.1 million. Revenues generated from product sales were $435.2 million, compared with $382.1 million in 2020.
Revenues from services and others were $10.9 million, compared with $16.1 million in 2020. Included in product sales, revenues from apparel increased by 73.6% to $274.2 million for 2021, compared with $157.9 million in 2020. Revenues from apparel represented 63% of total product sales for 2021, compared with 41.3% in 2020. Gross profit for the full year of 2021 was $206.7 million, compared with $176.2 million in 2020. Gross margin was 46.3% for 2021, compared with 44.2% in 2020.
Adjusted EBITDA was $27.9 million for 2021 compared with $22.8 million in 2020. Net income was $13.5 million compared with $13.3 million in 2020. Net income per ADS was $0.12 for both 2021 and 2020. This concludes our prepared remarks. At this point, we are ready to take some questions. Operator?
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to withdraw your request, please press the pound or hash key. Please stand by while we compile the question-and-answer roster. Once again, that's star one for questions. Our first question comes from the line of Matthew Larson from National Securities. Please ask your question.
Okay. Good evening. Thanks for taking my call. Listen, I just the questions I have are similar to the previous ones when I've been probably the only person on the conference call. You're a company that you did $446 million in revenues. Your market value is only $126 million. It's very unusual for an online merchandise like yourself to trade at almost a quarter of the revenues, particularly when half your market cap, just about $59 million out of $126 million, is in cash. One of the problems is you guys have even though you've doubled your revenues and done very well since the COVID crisis, and you've you know changed your merchandise makeup and what have you, more apparel it sounds like, you still lose money on an operating basis.
You've doubled your revenues and you still haven't made any money. Now, you do have this equity investment which, depending on how that's valued, swings you to either a profit or loss. I have two questions. What is this equity investment, if you could tell me? Because it is a pretty substantial part of your market cap because it's the $36 million that it's swung up or down really with the difference between you all making $0.07 and losing money, you know, in previous quarters. Can you answer that for me, please?
Thank you for the questions, Matthew. I think for the equity investment, we really can't comment that much for the moment. You know, the stock price is quite volatile and really out of control. Our mission and for the management is always to you know bring the long-term value for the company. You know, we are very much focused on the fundamentals of our business. You know, you have seen for the past, as Mr. He mentioned in his script, 2021 was quite an eventful year.
We have been through a lot of difficulties, you know, in the markets, you know, including, you know, the higher marketing spending and very high shipping delivery cost and new regulations in VAT and new regulations in the electronic products, you know. At the same time, you know, the U.S. dollar depreciate quite a lot. These have a lot of pressures on the company's operations. Even though that we have been, you know, gaining some significant progress, you have seen that our margin continue to, you know, to increase, since the apparel takes a, you know, larger portion of the whole product mix. You know, I think we, you know, it's always, you know, our focus to drive the sustainable strategy for the company.
On the other side, the stock market side, it's quite, you know, we can't really do anything on that part.
Uh-
I don't know if I answered your question.
Not really. I mean, again, why can you not identify what the equity investment is? Is it, I mean, is it invested in stocks in the Shanghai market? Is it an investment with... I have no idea. I mean, that is such an important part of your business and as a percentage of your market value, why can't that be identified? Because an investor can't very well make a confident investment in your firm unless they would know something about that. You know, is it off balance sheet or, I mean, I don't really understand it. I mean, why can't you identify it?
Well, we heard your advice, and I, you know, for this equity investment part, I think we will convey this message to the board, and we will, you know, seriously consider, you know, your suggestion.
All right.
We will.
All right.
Yes.
Okay. All right, we'll move on. I mean, that just doesn't work, okay? Here's the thing, your company's been public, probably almost 10 years. I remember when it came public. It was a popular, you know, almost a hot issue. I think it was about $10 or $15, and you're at $1, okay, 10 years later. Even though your revenues have, you know, climbed very sharply, you're gaining scale, you're in 120 countries, you claim, and you did 440. Your stock's $1. I mean, for the board members and the founder, I mean, how does that feel to, like, be worth like one, you know, one tenth, 10% of what you were worth 10 years ago? I just don't understand it.
This company would never be able to exist if it was a U.S. company because you would have private equity come in there and you know make an offer for it. With all the cash on your balance sheet, you could use that to buy the company. Since there's majority ownership because of the structure, you know, that's very difficult because the insiders own so much stock. How are you gonna get your stock higher? I mean, you've grown revenues. You have a ton of cash, a lot of cash. You're in the right space, which is online sales, particularly with some lockdowns going on you know around the world periodically.
People are at home, and they tend to buy things, you know, because they're sitting at home on their computers, versus going out to the store. Yet you still lose money, except for this, mysterious, you know, equity investment. I'm glad you have something because without it. I mean, see, that would add. If we could identify it, I could add that to this $59 million in cash and get a better sense of how to value your company as a special situation. I'll just close with this, because you're being opaque. Opaque, you know, meaning, you're not very clear. No wonder your stock is $1. Nobody will trust what's going on.
We could wake up one day and that equity investment gets cut in half, and then your stock gets cut in half. Then finally, with all your cash, have you ever thought about a share buyback? I mean, if you were to buy back 5 million shares, I mean, it wouldn't put a dent in your cash holdings. 5 million shares would put a nice bid in the market. You could or why don't you just take the company private? I mean, I've had many Chinese companies that I've owned go private at significant premiums. You could take this stock. I mean, why trade in the U.S.? You know, why not bring it home or just take it private? I mean, it has very little value here.
$1 a share, $1.20 or whatever it's trading at. I'll close with that. Are you guys ever interested in getting your share price higher to grow your wealth? I mean, is that an interest for you? It's just, I'm a frustrated investor. I lost a lot of money on the stock after making some, and it's just it is an enigma, okay? Which is a term here in the United States, which is a puzzle. I mean, one can't figure it out. What are your intentions? To just run a company for, you know, and never make any significant wealth? I'll leave it there. I mean, can you comment on that?
Mr. Matthew, really, you know, management team, we really cannot comment, you know, on the, you know, we cannot act or speak for the board, you know. Regarding the share buyback or the other financing that you were, you know, just mentioning, I think we would really seriously consider your advice, and take this advice to the board and see, you know, if they would, you know, what they would do. For the management team that we are here, our, you know, mission is always to build a strong foundation and a strong business for the company and for the shareholders. Yes. I hope you're not too disappointed.
Well, of course I'm disappointed. The stock's at $1, all right? 10 years after you went public, it's at $1. You're in the right space at the right time, which is online, you know, merchandise sales. Your stock is at $1, all right? If you call that building wealth for shareholders, that's just not true. I'll leave it there. Listen, I mean, you're not the only company domiciled in the PRC that is trading at $1 or $2. You know, people just have thrown in the towel here in the United States because they'd rather buy you know, stocks domestically that they can get better transparency. That's just my advice.
If you ever wanna grow your wealth, just either take it private and, you know, bid something low and take it off the floor here. I just don't understand it. I cannot understand why you all would be satisfied with a $1 stock, when it's a fraction of your gross revenue. I'll leave it there. Just my advice. If you want, you'll. It'll be unlikely your stock will go up, if you have this opaque, again, that's another term here, opaque, which is a non-transparent, you know, mission. You know what? Your balance sheet is obscure with this equity investment. Okay, thanks for your time. Appreciate it.
I'll follow you, but you know, it's tough to get conviction to put a lot of money into it when there's you know, these questions. Thanks for your time. Good luck. Nice quarter.
Thank you.
Thank you. Just a reminder, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. As there are no further question, I'll turn the call back to Mr. Rene Vanguestaine for closing remarks. Please continue.
Thank you, Amber. This concludes our earnings call. Thank you for your participation and ongoing support to LightInTheBox. We look forward to providing you with updates of our business in the coming weeks and months ahead. Have a good day.
Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.