Vipshop Shares Tumbled On Q4 Revenue Miss, Weak Q1 Outlook

Tiger Newspress2022-02-23

Vipshop Holdings Ltd  reported a fourth-quarter FY21 revenue decline of 4.6% year-on-year to $5.36 billion, missing the consensus of $5.59 billion.

VIPS shares traded lower by 10.57% in morning trading.

Drivers: Vipshop's GMV declined 3.9% Y/Y to RMB57 billion. The number of active customers decreased 7.2% Y/Y to 49.2 million. Total orders fell 4.6% Y/Y to 216.9 million.

Margins: The gross margin contracted 220 bps to 19.7%. The non-GAAP operating margin contracted 180 bps to 6.1%.

Non-GAAP earnings per ADS of $0.41 beat the consensus of $0.33.

Vipshop held $3.54 billion in cash and equivalents. It generated $1.1 billion in operating cash flow.

Eric Shen, Chair and CEO, stated, "For the past year, we strategically focused on core brands and high-value customers and have increased business synergies that are reinforcing our value proposition as a leading discount retailer for brands. Looking ahead, we will firmly execute on our merchandising strategy by deepening brand partnerships, enhancing customer acquisition efficiency, and improving customer stickiness to achieve quality and sustainable growth in the long run."

Outlook: Vipshop sees Q1 FY22 revenue of RMB27.0 billion - RMB28.4 billion, representing a year-over-year decrease rate of approximately 5% - 0%.

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Comments

  • Joelchua
    2022-02-24
    Joelchua
    Retail spending is indeed lower and affecting e commerce company fundamentals 
  • ZenInv
    2022-02-24
    ZenInv
    An indicator of investor sentiments in China?
  • Abundance Thankful
    2022-02-24
    Abundance Thankful
    Wow
  • Aaronboy
    2022-02-24
    Aaronboy
    Like please
  • rachellll
    2022-02-23
    rachellll
    A
  • tpanda
    2022-02-23
    tpanda
    Weew
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