Vipshop Holdings Reports Q3 2024 Financial Results

Vipshop Holdings ( (VIPS) ) has released its Q3 earnings. Here is a breakdown of the information Vipshop Holdings presented to its investors.

Vipshop Holdings Limited is a prominent online discount retailer based in China, specializing in offering branded products at significant discounts through its digital platforms. The company operates within the e-commerce sector, focusing on flash sales and value-driven shopping experiences for consumers across China.

In its latest earnings report for the third quarter of 2024, Vipshop Holdings Limited reported a decrease in net revenues to RMB20.7 billion from RMB22.8 billion compared to the same period last year. Despite facing challenges in discretionary categories, the company maintained profitability and continued to focus on long-term strategic goals, showcasing resilience in a soft market environment.

Key financial metrics from the report indicate a decline in gross merchandise value (GMV) to RMB40.1 billion, and a reduction in active customers to 39.6 million. The gross profit stood at RMB5.0 billion, while net income attributable to shareholders was RMB1.0 billion. The company also managed to keep operating expenses in check, reducing them by 6.1% year-over-year.

The company is actively investing in growth and enhancing operational efficiency, as reflected in its strategic resource reallocation and share repurchase activities, which amounted to US$275 million during the quarter. The management remains committed to optimizing customer impact and shareholder value, with plans to initiate a new US$1.0 billion share repurchase program.

Looking forward, Vipshop anticipates a year-over-year revenue decrease of approximately 5% to 10% for the fourth quarter of 2024. The management continues to focus on executing retail fundamentals and adapting to market conditions to drive long-term growth.