Latest news with #Vipshop
Yahoo
22-05-2025
- Business
- Yahoo
Vipshop Q1 Results Disappoint, Stock Tanks 2%
Shares of Vipshop Holdings Limited (NYSE:VIPS) fell by as much as 2% on May 20 after the Chinese e-commerce operator delivered disappointing first-quarter 2025 results. The discount shopping platform delivered a 5% year-over-year revenue decline and logged 26.27 billion Chinese yuan ($3.64 billion) in sales. The decline came as gross merchandise volume fell to RMB52.38 billion, compared to RMB52.44 billion delivered the same quarter last year. A close up of a person's hands interacting with a digital financial asset tracker. 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. Disclosure: None.
Yahoo
21-05-2025
- Business
- Yahoo
Vipshop Q1 Results Disappoint, Stock Tanks 2%
Shares of Vipshop Holdings Limited (NYSE:VIPS) fell by as much as 2% on May 20 after the Chinese e-commerce operator delivered disappointing first-quarter 2025 results. The discount shopping platform delivered a 5% year-over-year revenue decline and logged 26.27 billion Chinese yuan ($3.64 billion) in sales. The decline came as gross merchandise volume fell to RMB52.38 billion, compared to RMB52.44 billion delivered the same quarter last year. A close up of a person's hands interacting with a digital financial asset tracker. 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. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Vipshop Holdings Ltd (VIPS) Q1 2025 Earnings Call Highlights: Navigating Revenue Challenges ...
Total Net Revenues: RMB26.3 billion, compared with RMB27.6 billion in the prior year period. Gross Profit: RMB6.1 billion, compared with RMB6.5 billion in the prior year period. Gross Margin: 23.2%, compared with 23.7% in the prior year period. Total Operating Expenses: Decreased by 1.6% year-over-year to RMB4.0 billion. Fulfillment Expenses: Decreased by 4.8% year-over-year to RMB1.9 billion. Marketing Expenses: Increased by 6.0% year-over-year to RMB732.1 million. Technology and Content Expenses: Decreased by 6.8% year-over-year to RMB449.1 million. General and Administrative Expenses: Increased by 2.3% year-over-year to RMB950.8 million. Income from Operations: RMB2.3 billion, compared with RMB2.8 billion in the prior year period. Operating Margin: 8.7%, compared with 10.0% in the prior year period. Net Income Attributable to Shareholders: RMB1.9 billion, compared with RMB2.3 billion in the prior year period. Net Margin Attributable to Shareholders: 7.4%, compared with 8.4% in the prior year period. Non-GAAP Net Income Attributable to Shareholders: RMB2.3 billion, compared with RMB2.6 billion in the prior year period. Non-GAAP Net Margin Attributable to Shareholders: 8.8%, compared with 9.3% in the prior year period. Cash and Cash Equivalents: RMB28.9 billion as of March 31, 2025. Short-term Investments: RMB192.3 million as of March 31, 2025. Revenue Guidance for Q2 2025: Expected to be between RMB25.5 billion and RMB26.9 billion, representing a year-over-year decrease of approximately 5% to 0%. Warning! GuruFocus has detected 6 Warning Signs with GDS. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vipshop Holdings Ltd (NYSE:VIPS) reported positive growth in the apparel category for the first quarter. The Super VIP membership program saw an 18% increase in active members, contributing to 51% of online spending. The 'Made for Vipshop' program continued to outperform, with over 200 brands joining by the end of March. The company is leveraging AI to enhance customer experience, including improving search recommendations and creating high-impact content. Vipshop Holdings Ltd (NYSE:VIPS) maintained solid profitability despite sales pressure, demonstrating operational efficiency. Total net revenues for the first quarter decreased to RMB26.3 billion from RMB27.6 billion in the prior year period. Gross profit and gross margin both declined compared to the previous year, indicating pressure on profitability. Operating expenses as a percentage of total net revenues increased slightly, impacting overall margins. Net income attributable to Vipshop's shareholders decreased to RMB1.9 billion from RMB2.3 billion in the prior year period. The company expects a year-over-year revenue decrease of approximately 5% to 0% for the second quarter of 2025. Q: Can management comment on the recent consumer sentiment and the outlook for revenue and earnings for the full year 2025? A: Eric Shen, CEO: We have observed signs of improvement in consumer sentiment. After a slow start in January and February, sales improved in March, and the momentum continued into April and May. We expect to regain growth in the second half of the year, with margins remaining stable due to disciplined investment and management. Q: How is the June 18 campaign different from last year, and what is the current consumer sentiment? A: Eric Shen, CEO: The industry promotion has become lengthy, lasting a month. Consumers are accustomed to promotions and subsidies, focusing on value and deals. Vipshop continues to offer unique, quality, off-price deals to attract consumers. Q: Does the company have any plans for a secondary listing in Hong Kong? A: Mark Wang, CFO: We are closely monitoring capital market developments and evaluating the option of a Hong Kong listing internally. We will update the market if there is any progress. Q: What is the strategy to drive SVIP growth, and what are the goals for the second half and next year? A: Eric Shen, CEO: We aim to continue double-digit growth for SVIP customers by offering unique, exclusive off-price products and invite-only private sales. We expect SVIP contribution to online spending to increase from the current 51%. Q: How is the competitive landscape changing amid macro uncertainty in e-commerce? A: Eric Shen, CEO: The environment is hyper-competitive. Vipshop focuses on discount retail for brands, emphasizing great merchandise, prices, and services. We aim to become the online outlet for deep discount product offerings. Q: What are the latest trends in shopping frequency and ARPU for Super VIP members? A: Eric Shen, CEO: SVIP metrics are stable, with a slight decline due to new members. We aim to increase loyalty and cross-category purchases through unique merchandising. Family shoppers present significant potential for growth. Q: What is the latest trend for return rates? A: Eric Shen, CEO: Return rates have stabilized, with a slight increase of over 2 percentage points. Our stable return policy has moderated return rates over time. Q: Does management maintain the previous capital return guidance for this year? A: Mark Wang, CFO: Despite industry challenges, we are confident in achieving stable profits and cash inflow. We plan to return no less than 75% of our full-year 2024 non-GAAP net income to shareholders through share repurchase and dividends. Q: What is the impact of the trading program on sales and GMV? A: Eric Shen, CEO: The trading program, mainly covering home appliances, contributes around 1% of total GMV and is not expected to significantly impact financial performance. Q: How does the Shan Shan Outlets lease program affect strategy? A: Mark Wang, CFO: The outlets business is growing, and we see synergies with Vipshop's online discount retail. The lease program allows for efficient expansion through new projects and acquisitions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
20-05-2025
- Business
- Forbes
China Market Update: Easing Cycle Continues As CATL IPO & 3SBio Jump
CLN KraneShares (9961 HK, TCOM US) reported Q1 financial results after yesterday's US market closed. The stock was off by -2.22% overnight despite lagging its internet peers and the Hong Kong market year to date (YTD). The lack of Q2 guidance weighed on sentiment. Bilibili Online video community Bilibili (9626 HK, BILI US) reported Q1 financial results that exceeded expectations after the Hong Kong close today. Shares are higher in US pre-market trading. Vipshop Online discount retailer Vipshop (VIPS US) reported Q1 earnings before the US market opened this morning. The company's plans to relist in Hong Kong are a big question for the earnings call. While the probability of an ADR delisting is low, policy errors do occur. The lack of a Hong Kong listing is a risk to the founders, management, employees, and shareholders, with a fairly simple solution available. Shares are lower in US pre-market trading. Asian equities delivered mixed performance overnight despite a stronger US dollar, as the yield on the Japanese 30-Year Government Bond rose to a record high of 3.1%. Hong Kong and Vietnam led gains in the region, while India and the Philippines underperformed. The People's Bank of China (PBOC) cut the 1-Year Loan Prime Rate (LPR) to 3.0% from 3.1% and the 5-Year LPR to 3.5% from 3.6%, as reported by Reuters. Chinese banks responded by lowering deposit rates, with lending rates expected to follow. The demand deposit rate fell to 0.05% from 0.1%, and the 1-Year deposit rate dropped below 1% for the first time, to 0.95%. Mainland media reported that banks in Beijing and Shanghai were adjusting mortgage rates, which are based on the 5-Year LPR. This move marked another step in China's ongoing easing cycle, with further cuts anticipated. China's Ministry of Finance reported that national general public budget revenue declined by 0.4% year-over-year, while national government fund budget expenditure increased by 17.7% year-over-year. The Chinese government continues to stimulate the economy through both fiscal and monetary measures. In equity markets, Contemporary Amperex Technology Co. Limited (CATL) surged 16.43% in its Hong Kong initial public offering, the largest globally so far this year. The robust IPO pipeline and rebounding trading volumes signal renewed strength in Hong Kong's stock market. 3SBio Inc. gained 32.28% after announcing a licensing agreement with Pfizer for its cancer drug. The United States Food and Drug Administration (FDA) approved SSGJ-707 for the treatment of non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors, according to Bloomberg. Xiaomi rose 4.68% after announcing production of its "Xring 01" semiconductor chip. Hong Kong's rally was broad, as advancers outnumbered decliners by three to one. Sixty-eight companies reached 52-week highs, compared to 23 hitting 52-week lows. Mainland investors purchased a net $808 million of Hong Kong-listed stocks. Mainland China equities also moved higher on positive breadth, though trading volumes were slightly lower. The Hang Seng Index and Shanghai Composite Index have both cleared the Liberation Day gap, while the Shenzhen Component Index and Hang Seng Tech Index are just above this level. The positive momentum may continue if these trends persist. Investor's Business Daily recently published an article by Juan Carlos Arancibia, 'Bon Voyage, Investors,' highlighting the strong performance of non-U.S. equity markets and examining catalysts across global regions as 'U.S. exceptionalism falters.' It is a worthwhile read for those interested in the shift in global equity leadership. New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
Yahoo
20-05-2025
- Business
- Yahoo
Chinese Retailer Vipshop's Stock Sinks as Q1 Sales, Active Customers Fall Short
Vipshop Holdings stock tumbled in premarket trading Tuesday as the Chinese retailer's first-quarter revenue and active customers fell short of estimates. Gross merchandise value and adjusted earnings beat expectations. The company's U.S.-listed shares fell 8.5% in premarket 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. Read the original article on Investopedia
