viewVipshop Holdings Ltd

Vipshop shares plunge as 1Q earnings miss despite revenue beat

China’s online discount retailer’s second-quarter revenue outlook was in line with analyst expectations

A Vipshop display on the side of an office wall
Vipshop profit declines taking the stock down

Shares of Vipshop Holdings Ltd (NYSE:VIPS) plunged Tuesday after China’s online apparel discount retailer reported first-quarter earnings that fell short of estimates.

Investors soured on Vipshop’s American depositary receipts listed on the New York Stock Exchange which tumbled over 20% to US$12.05.

For the quarter ended March 31, Vipshop reported earnings of US$0.17 per share that missed predictions of US$0.18 and was down 20% from the year-ago period.

The company reported revenue of US$3.2bn, up 24.6% from the year-ago period. That beat analyst estimates for US$3.08bn.

The company projected second-quarter revenue in the range of US$3.2bn to US$3.36bn. Analysts predicted US$3.36bn.

In December, Chinese internet giant Tencent Holdings Ltd. (HKG:0700) and its longtime ally e-commerce firm JD.com Inc. (NASDAQ:JD) invested a combined US$863mln in Vipshop, giving it muscle to take on retail giant Alibaba Group Holding Ltd (NYSE:BABA).

“We made further progress with our strategic collaboration with Tencent and JD.com, opening up the entry on JD's app homepage in mid-March and the WeChat wallet entry in early April,” said Vipshop CEO Eric Shen.

“We will continue to work closely with Tencent and JD.com in order to improve the traffic flow and conversion rates, which will contribute meaningfully to our long-term customer and revenue growth," added Shen.     

Quick facts: Vipshop Holdings Ltd

Price: 16.98 USD

Market: NYSE
Market Cap: $11.48 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


Cabral Gold adds 2nd drill rig as company identifies new high-grade veins

Cabral Gold (CVE: CBR-OTC: CBGZF) CEO Alan Carter joined Steve Darling from Proactive Vancouver with news the company has identified at least six new NE trending high-grade veins in the Machichie SW area located immediately north of the MG deposit. Carter telling Proactive what had led them...

3 hours, 28 minutes ago

2 min read