Vipshop Reports Unaudited Third Quarter 2024 Financial Results; Conference Call to Be Held at 7: 30 A.M. U.S. Eastern Time on November 19, 2024

Published: 2024-11-20 10:25:16 ET VIPS

GUANGZHOU, China- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ('Vipshop' or the 'Company'), today announced its unaudited financial results for the quarter ended September 30, 2024.

Third Quarter 2024 Highlights

Total net revenues for the third quarter of 2024 were RMB20.7 billion (US$2.9 billion), compared with RMB22.8 billion in the prior year period.

GMV[1] for the third quarter of 2024 was RMB40.1 billion, compared with RMB42.5 billion in the prior year period.

Gross profit for the third quarter of 2024 was RMB5.0 billion (US$706.1 million), compared with RMB5.4 billion in the prior year period.

Net income attributable to Vipshop's shareholders for the third quarter of 2024 was RMB1.0 billion (US$149.0 million), compared with RMB1.2 billion in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders[2] for the third quarter of 2024 was RMB1.3 billion (US$186.8 million), compared with RMB1.8 billion in the prior year period.

The number of active customers[3] for the third quarter of 2024 was 39.6 million, compared with 42.3 million in the prior year period.

Total orders[4] for the third quarter of 2024 were 163.9 million, compared with 179.9 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, 'Our third-quarter performance reflected soft industry trends in discretionary categories. During the quarter, we swiftly adapted our business priorities to address external challenges and identify the biggest opportunities for improvement. We observed some early positive results from a series of adjustments, which further enhanced our merchandising portfolio and operational efficiency, while active Super VIP customers continued to experience double-digit growth. With consumer spending yet to fully recover, we remain laser-focused on our long-term strategies, while driving necessary changes and executing the retail fundamentals that are pivotal to our long-term growth.'

Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, 'Our third-quarter results were largely in line with our expectations. We maintained solid profitability through disciplined financial management. At the same time, we continued to invest to grow, reallocating resources to maximize customer impact and growth, with the goal of creating a better balance in our business. In addition, we continued to return value to our shareholders by repurchasing US$275.0 million worth of shares during the quarter, and we are committed to a new US$1.0 billion program once we fully utilize the current repurchase program.'

Third Quarter 2024 Financial Results

REVENUES

Total net revenues for the third quarter of 2024 were RMB20.7 billion (US$2.9 billion), compared with RMB22.8 billion in the prior year period.

GROSS PROFIT

Gross profit for the third quarter of 2024 was RMB5.0 billion (US$706.1 million), compared with RMB5.4 billion in the prior year period. Gross margin for the third quarter of 2024 increased to 24.0% from 23.6% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the third quarter of 2024 decreased by 6.1% year over year to RMB3.8 billion (US$536.6 million) from RMB4.0 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the third quarter of 2024 was 18.2%, compared with 17.6% in the prior year period.

Fulfillment expenses for the third quarter of 2024 decreased by 2.0% year over year to RMB1.7 billion (US$247.3 million) from RMB1.8 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the third quarter of 2024 was 8.4%, compared with 7.8% in the prior year period.

Marketing expenses for the third quarter of 2024 decreased by 7.7% year over year to RMB617.8 million (US$88.0 million) from RMB669.6 million in the prior year period. As a percentage of total net revenues, marketing expenses for the third quarter of 2024 was 3.0%, compared with 2.9% in the prior year period.

Technology and content expenses for the third quarter of 2024 increased by 4.3% year over year to RMB454.2 million (US$64.7 million) from RMB435.3 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the third quarter of 2024 was 2.2%, compared with 1.9% in the prior year period.

General and administrative expenses for the third quarter of 2024 decreased by 15.3% year over year to RMB957.8 million (US$136.5 million) from RMB1.1 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses for the third quarter of 2024 decreased to 4.6% from 5.0% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the third quarter of 2024 was RMB1.3 billion (US$189.5 million), compared with RMB1.5 billion in the prior year period. Operating margin for the third quarter of 2024 was 6.4%, compared with 6.7% in the prior year period.

Non-GAAP income from operations[5] for the third quarter of 2024, which excluded share-based compensation expenses, was RMB1.7 billion (US$242.4 million), compared with RMB2.1 billion in the prior year period. Non-GAAP operating margin[6] for the third quarter of 2024 was 8.2%, compared with 9.1% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders for the third quarter of 2024 was RMB1.0 billion (US$149.0 million), compared with RMB1.2 billion in the prior year period. Net margin attributable to Vipshop's shareholders for the third quarter of 2024 was 5.1%, compared with 5.3% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[7] for the third quarter of 2024 was RMB1.97 (US$0.28), compared with RMB2.19 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the third quarter of 2024, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, was RMB1.3 billion (US$186.8 million), compared with RMB1.8 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[8] for the third quarter of 2024 was 6.3%, compared with 8.1% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the third quarter of 2024 was RMB2.47 (US$0.35), compared with RMB3.33 in the prior year period.

For the quarter ended September 30, 2024, the Company's weighted average number of ADSs used in computing diluted income per ADS was 530,188,575.

BALANCE SHEET AND CASH FLOW

As of September 30, 2024, the Company had cash and cash equivalents and restricted cash of RMB22.5 billion (US$3.2 billion) and short term investments of RMB1.6 billion (US$222.3 million).

For the quarter ended September 30, 2024, net cash generated from operating activities was RMB508.9 million (US$72.5 million), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows

See full release at: https://vipshopholdingsltd.gcs-web.com/news-releases/news-release-details/vipshop-reports-unaudited-third-quarter-2024-financial-results