Vipshop's second-quarter revenue increased by 13.6%, performance guidance fell nearly 6% below expectations | Earnings Report

Against the backdrop of a weak overall consumption recovery, the "small and beautiful" e-commerce platform Vipshop, despite its impressive performance in the second quarter, fell short of expectations in its third-quarter guidance.

On Friday, August 18, Beijing time, Vipshop announced its second-quarter results for the period ending June 30.

According to the financial report, Vipshop achieved steady revenue growth in Q2, with revenue increasing from 24.5 billion yuan in the same period last year to 27.9 billion yuan, a 13.6% increase that was in line with expectations. Gross Merchandise Volume (GMV) increased from 40.6 billion yuan in the same period last year to 50.6 billion yuan, a 24.5% increase that exceeded the expected 46.69 billion yuan. Adjusted operating profit reached 2.3 billion yuan, a 48% year-on-year increase that exceeded the market's expectation of 2.1 billion yuan. The adjusted operating profit margin reached 8.2%, an increase of nearly 2 percentage points compared to the same period last year. Non-GAAP net profit increased by 63.5% from 1.3 billion yuan in the same period last year to 2.1 billion yuan.

In this quarter, Vipshop's active user base grew by 9.6% year-on-year to 45.7 million, surpassing the market's expectation of 45.28 million. The total number of orders increased from 186.3 million in the same period last year to 213.8 million, a 14.7% year-on-year increase.

In terms of expenses, operating expenses slightly increased this quarter, with little change in the proportion to total revenue compared to the same period last year, but marketing expenses increased significantly compared to the same period last year.

Total operating expenses increased by 13.7% year-on-year from 3.9 billion yuan in the same period last year to 4.5 billion yuan, accounting for 16.1% of revenue, which remained the same as last year. Fulfillment expenses increased by 22.8% year-on-year from 1.8 billion yuan to 2.2 billion yuan, accounting for 7.8% of revenue. Marketing expenses increased by 60.6% year-on-year from 560 million yuan to 890 million yuan.

In addition, administrative expenses at Vipshop decreased significantly this quarter, from 1.2 billion yuan in the same period last year to 963.1 million yuan, a 19.4% year-on-year decrease.

Vipshop CEO Shen Ya said:

With the support of our well-executed marketing strategy, we achieved strong performance in the second quarter. This quarter, our team has obtained more high-quality sources from core brands, driving the widespread strength of clothing-related categories.

In addition, thanks to the strong momentum of our super VIP members, customers' favorability towards us has also increased, as they have always pursued value for money. With our clear value proposition in discount retail, we are well-prepared to seize opportunities and further win the hearts and minds of consumers, making Vipshop the preferred platform for online clothing shopping.

To this end, we are strengthening our own capabilities to provide a wide range of options that are both diverse and cost-effective, as well as ensuring reliable customer service and experience. We firmly believe that our unique business model will support our long-term growth.

Looking ahead to the third quarter, the company expects revenue to be between 21.6 billion yuan and 22.7 billion yuan, lower than analysts' expectations of 23.15 billion yuan.

As of the time of writing, Vipshop's stock price has fallen nearly 6% before the market opens.