Vipshop Holdings Ltd (NYSE:VIPS) has reported second-quarter revenue and earnings that beat expectations as more customers shopped for value for money.
Still, the company’s American depositary receipts (ADRs) fell in Friday pre-market trading.
The online discount retailer for brands in China grew revenue by 13.6% to $3.84 billion for the three months to June 30, 2023, just above analysts’ consensus estimate of $3.83 billion.
Non-GAAP earnings per ADR jumped 76% to $0.59, above the Street’s forecast of $0.44.
"We had a strong second quarter driven by our well-executed merchandising strategy,” commented Vipshop chairman and CEO Eric Shen.
“During the quarter, our team was able to secure much more quality supply from core brands, which fueled the broad-based strength in apparel-related categories.
“Customers also showed stronger preference for us as they constantly seek value for money, led by robust momentum in our Super VIP members. With our clear-cut value proposition in discount retail, we are well positioned to capture the opportunity to further gain mindshare among consumers, making Vipshop the first go-to online shopping platform for apparel.”
The company’s NYSE-listed ADRs fell over 7.5% to US$15.02 in premarket trading.
Contact the author at stephen.gunnion@proactiveinvestors.com