Vipshop Holdings Limited, a leading online discount retailer in China, reported mixed results for the second quarter of 2024 amid a challenging market environment. The company's revenue of $3.7 billion (RMB 26.9 billion) beat estimates slightly but declined 3.58% year-over-year, reflecting ongoing headwinds in the Chinese e-commerce market.
Vipshop’s U.S.-listed shares fell over 7% in premarket trading.
Despite the revenue decline, Vipshop's non-GAAP earnings per share of $0.54 exceeded analyst expectations by $0.01, supported by cost optimization efforts and improved operational efficiency. The company's gross merchandise value (GMV) for the quarter was RMB 50.6 billion, largely staying flat compared to the prior year period.
Vipshop's gross profit increased by 2.2% year-over-year to RMB 6.3 billion ($872.6 million), benefiting from a higher gross margin of 23.6%. Additionally, the company's non-GAAP income from operations rose 11.6% to RMB 2.6 billion ($352.9 million), reflecting its focus on cost control and operational excellence.
However, the company's active customer base and total orders declined compared to the previous year. The number of active customers for the second quarter of 2024 was 44.3 million, down from 45.6 million in the prior year period, while total orders fell to 197.8 million from 213.8 million.
Despite the challenges, Vipshop maintained a strong cash position, with cash and cash equivalents and restricted cash of $3.0 billion as of June 30, 2024. The company also generated $39.5 million in net cash from operating activities during the second quarter.
