Chinese Retailer Vipshop's Stock Sinks as Q1 Sales, Active Customers Fall Short
Gross merchandise value and adjusted earnings beat expectations.
The company's U.S.-listed shares fell 8.5% in premarket trading.Vipshop Holdings' (VIPS) U.S.-listed shares tumbled on Tuesday morning after the Chinese retailer's first-quarter results largely fell short of estimates.
The discount shopping platform reported revenue of 26.27 billion Chinese yuan ($3.64 billion), down 5% from a year ago, on 167.2 million total orders placed by roughly 41.3 million active customers. All three metrics came in below analysts' estimates compiled by Visible Alpha.
However, Vipshop's adjusted earnings per American Depositary Share (ADS) of CNY4.43 ($0.61) and gross merchandise value sold on its platform of CNY52.38 billion ($7.26 billion) came in better than expected.
The quarter came in "broadly in line with our expectations," CEO Eric Shen said, adding that the company "continued to make progress on the strategic actions we have set out to return to growth."
The company said it expects second-quarter revenue of CNY25.5 billion to CNY26.9 billion, with the midpoint of CNY26.2 billion below the analyst consensus of CNY 26.33 billion. The projections "reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change," Vipshop said.
U.S.-listed shares of Vipshop were down 8.5% in premarket trading Tuesday. They entered the day up about 15% since the start of the year.
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