Alibaba's Biggest Shopping Extravaganza Falls Prey To China's Covid Measures

China's Covid controls disrupted Alibaba Group Holding Limited's BABA ability to deliver packages dragging down the e-commerce giant's sales in a competitive market, CNBC reports.
"The resurgence of Covid has affected one area after another, resulting in abnormal or suspended logistic service in different places," Alibaba CEO Daniel Zhang said during a quarterly earnings call. "This hurt merchant operations and consumer logistics experience."
Disruptions affected nearly 15% of delivery areas in China starting in October and through the 11.11 shopping festival campaign period.
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This year, Alibaba declined for the first time to share the total gross merchandise value for its Singles Day shopping extravaganza that ended November 11.
The company only said sales were "in line" with last year, which recorded the equivalent of $84.54 billion GMV.
Rival JD.Com, Inc JD did not share GMV for its Singles Day promotional period this year.
Alibaba's Taobao and Tmall online shopping platforms saw GMV fall by the low single-digits from a year ago.
While Zhang noted logistics disruptions through November 11, he said the company was "seeing improvements."
Last week, China trimmed quarantine times and signaled a broader easing in its stringent Covid controls.
Price Action: BABA shares are down by 2.07% at $82.52 premarket on the last check Friday.