On August 25, Vipshop released its financial results for the second quarter of 2026, revealing net revenue of RMB 24.7 billion for the period. The company's Non-GAAP net income stood at RMB 392 million, a decline compared to RMB 2.1 billion in the same period last year, primarily attributable to a one-time withholding tax adjustment related to historical dividend distributions. During the quarter, gross merchandise volume (GMV) reached RMB 50.6 billion, with total orders amounting to 182 million.
The company's Super VIP (SVIP) membership base continued its steady growth trajectory, surpassing the 10 million mark during the quarter. In the first half of this year, Vipshop returned nearly USD 400 million to shareholders through a combination of stock dividends and share buybacks. Demonstrating confidence in its future prospects, the board of directors has approved a new share repurchase program, authorizing the company to buy back up to USD 1 billion in American Depositary Shares or Class A ordinary shares within 24 months following the completion of its existing buyback plan.
In the second quarter, Vipshop's "Super Brand Day" and "Super Category Day" promotional segments achieved double-digit year-over-year growth in overall performance. The platform introduced a new "Vipshop Hot Topics" campaign IP in the first half of the year, designed to tap into latent consumer demand through scenario-based merchandising, which drove sales growth in trend-driven categories such as sportswear and gifting. The "Limited-Time Flash Sale" initiative continued to attract high-quality, well-reviewed deep-discount products, with both segment performance and user return rates showing year-over-year improvements.
The platform has comprehensively upgraded its membership system, delivering enhanced services and benefits to SVIP members. Through exclusive private sales and SVIP trial programs, Vipshop offers members access to scarce and surprise-driven products, further enriching the value proposition of membership. Additionally, new exclusive privileges for SVIP Black Diamond tier members—including 15-day hassle-free returns, VIP event experiences, and dedicated customer service—have been introduced to boost satisfaction among high-value users. In the second quarter, the number of active SVIP users grew rapidly year-over-year, consistently contributing more than 50% of online sales.
On the technology front, the company continues to advance AI-driven process automation across its business operations. In customer service, AI products such as virtual fitting rooms and intelligent customer support are enhancing the shopping experience. Internally, Vipshop is evolving AI from individual tools into a comprehensive intelligent platform covering major business systems, with initial successes already visible in supply chain and daily operational process optimization.
As a key component of the company's multi-channel discount retail strategy spanning online and offline, the Shanshan Outlets division has expanded steadily since its acquisition in 2019. Focusing on new first-tier, second-tier, and key provincial capital cities, the number of outlets has grown from 5 to 22, making it the largest outlet group by number of open stores in China. In the first half of this year, Shanshan Outlets maintained overall sales growth exceeding 20%.
The financial report also indicated that in the second quarter of 2026, Vipshop processed withholding tax on historical dividends distributed from mainland China to Hong Kong, resulting in a total provision of approximately RMB 1.56 billion. Chief Financial Officer Wang Yuhua commented, "The company has always maintained a high level of compliance, strictly adhering to tax laws and regulatory requirements. This withholding tax adjustment pertains to historical dividends remitted in prior years, with the related taxes expected to be paid in the third quarter. Going forward, for any distribution of domestic earnings to overseas entities, the company will continue to accrue dividend withholding tax at the statutory rate. This matter does not affect the company's fundamentals, and overall operations remain stable."
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