Vipshop Stock Jumps After Q4 Earnings Beat, CEO Highlights Apparel Growth And Discounted Offerings, Sees Up To 5% Revenue Decline In Q1

On Friday, Vipshop Holdings VIPS reported fourth-quarter sales of $4.55 billion (33.2 billion Chinese Yuan), down by 4.2% year-on-year, which topped the Wall Street view of $4.42 billion.

The Chinese discounted branded retailer registered adjusted earnings per ADS of 78 cents, which beat the analyst consensus estimate of 72 cents. The stock price surged after the report.

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Total orders for the quarter were 217.5 million, compared with 234.3 million in the prior year period.

The number of active customers for the quarter was 45.7 million, down from 48.5 million a year ago.

The quarter’s gross margin was 23.0%, down from 23.7% in the prior year period. Gross profit declined by 7.4% to $1.04 billion (7.6 billion Chinese Yuan).

GMV for the quarter was 66.2 billion Chinese Yuan versus 66.4 billion Chinese Yuan a year ago.

As of December 31, 2024, the company had cash and cash equivalents, restricted cash of $3.7 billion (27.0 billion Chinese Yuan), and short-term investments of $256.6 million (1.9 billion Chinese Yuan).

During the quarter, the company repurchased $43.3 million of its ADSs under its current $1 billion share repurchase program, which is effective through February 2027. 

Chair and CEO Eric Shen noted an upbeat fourth quarter, concluding a challenging year. Apparel categories achieved positive growth for the quarter and full year, backed by off-price seasonal offerings, helping total GMV surpass 200 billion Chinese Yuan again in 2024.

Outlook: For the first quarter, the company expects its total net revenues of 26.3 billion Chinese Yuan–27.6 billion Chinese Yuan, representing a year-over-year decrease of approximately 5%–0% against consensus of 26.43 billion Chinese Yuan.

Vipshop Holdings stock surged close to 15% in the last six months, backed by China’s stimulus measures to beat the economic slowdown. 

Price Action: VIPS stock is up 9.57% to $15.92 premarket at last check Friday. 

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• NetEase Q4 Earnings: Revenue Miss, Gaming and Cost Controls Drive Margins, Boosts Dividend

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