Vipshop Holdings Ltd VIPS reported third-quarter FY23 revenue growth of 5.3% year-over-year to RMB22.8 billion ($3.1 billion).
GMV increased by 13.1% year over year to RMB42.5 billion for the quarter.
The number of active customers grew by 3.5% Y/Y to 42.5 million. Total orders increased by 6.9% Y/Y to 179.9 million.
The Gross profit declined by 13% Y/Y to RMB5.4 billion ($737.6 million), and the gross margin contracted by 200 bps to 21.7%.
The adjusted operating income increased by 33% Y/Y to RMB2.1 billion ($284.2 million), and the operating margin improved to 9.1% from 7.2% in 3Q22.
Adjusted earnings per ADS for the quarter increased to RMB3.33 (S$0.46) from RMB2.56 a year ago.
As of September 30, 2023, the Company had cash and cash equivalents and restricted cash of RMB19.6 billion ($2.7 billion) and short-term investments of RMB451.9 million ($61.9 million).
During the quarter, VIPS repurchased $13.4 million of its ADSs under its current $1 billion share repurchase program, effective through March 2025; it has an unutilized amount of $551.5 million under this program.
“We had a decent quarter, primarily driven by the sustained momentum in the apparel category. During the quarter, we advanced our strategic priority of growing mindshare for Vipshop to become the go-to online shopping platform for apparel.”
“We are encouraged to see that our professional merchandising team is skilled at both developing a rich and diverse mix of branded merchandise and identifying opportunities with brand partners in customized products,” commented Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop.
Outlook: Vipshop sees Q4 revenue of RMB31.8 billion – RMB33.3 billion, representing a year-over-year increase of approximately 0% to 5% Y/Y.
Price Action: VIPS shares are trading higher by 1.36% at $14.50 on the last check Tuesday.
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