Benzinga - RLX Technology Inc - ADR (NYSE: RLX) shares are trading higher by 18.6% to $1.71 Thursday afternoon. The company reported third-quarter financial results Wednesday.
What Happened?
RLX Technology reported quarterly adjusted earnings of $0.035 per ADS. This represents a 31% decrease over earnings of 5 cents per share from the same period last year. The company also reported $146.82 million in sales this quarter.
RLX says gross margin was 50% in the third quarter of 2022, compared with 39.1% in the same period of 2021. The increase was primarily due to a favorable change in channel mix and a decrease in direct cost related to promotional activities.
"We delivered net revenues of approximately RMB1.0 billion in the third quarter, recording a sequential decrease mainly due to the discontinuation of older products during the transition to the new national standards, as well as the second quarter's high comparison basis mainly attributable to frontloading of sales in anticipation of the discontinuation of older products," Mr. Chao Lu, Chief Financial Officer of RLX Technology.
"We remain confident that our diversified portfolio will continue to satisfy adult smokers' needs and that our sales will gradually recover," Lu stated.
According to data from Benzinga Pro, RLX has a 52-week high of $5.90 and a 52-week low of $0.90.
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