Vipshop Q1 Results Disappoint, Stock Tanks 2%
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Consequently, net income attributable to shareholders dropped to RMB1.9 billion or $267.7 million compared to RMB2.3 billion delivered in the same quarter last year. On the other hand, it expects its second quarter revenues to average between RMB25.5 billion and RMB26.9 billion, representing a 5% to 0% year-over-year decline.
Amid the disappointing first quarter results, CEO Eric Shen insists they made progress on strategic actions that should return the company to robust growth. For starters, Vipshop continues to expand its unique and high-quality off-price brand supply, which has driven double-digit growth in Super VIP customers.
Despite the earnings miss and disappointing outlook, Jefferies has reiterated a Buy rating on the stock and an $18.30 price target. According to Jefferies, Vipshop boasts a healthy gross profit margin of 23.5% while generating strong returns.
While we acknowledge the potential of Vipshop Holdings Limited (NYSE:VIPS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VIPS and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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