#China #Guangzhou #financial results #Vipshop #online retailer

Vipshop Holdings Limited Reports Second Quarter 2025 Financial Results

GUANGZHOU, China, August 14, 2025 – Vipshop Holdings Limited (NYSE: VIPS), a prominent online discount retailer in China, has released its unaudited financial results for the second quarter of 2025, ending June 30. In a capacity aimed at reviving customer engagement and boosting sales momentum, the company has seen promising trends despite some setbacks compared to last year.

Key Highlights from Q2 2025

• - Total Net Revenues: Vipshop reported total net revenues of RMB 25.8 billion (approximately US$3.6 billion), marking a slight decline from RMB 26.9 billion in Q2 of 2024.
• - Gross Merchandise Value (GMV): The company experienced an increase in GMV by 1.7% year-on-year, rising to RMB 51.4 billion compared to RMB 50.6 billion during the prior year.
• - Gross Profit: Gross profit noted a decrease to RMB 6.1 billion (US$845.2 million), down from RMB 6.3 billion year-on-year.
• - Net Income: The net income attributable to Vipshop's shareholders decreased to RMB 1.5 billion (US$208 million) from RMB 1.9 billion in the same quarter last year, with a per-share value of RMB 2.91 (US$0.41).
• - Active Customers: The number of active customers saw a decline to 43.5 million from 44.3 million in the previous year.
• - Order Volume: Total orders also dipped to 193.0 million compared with 197.8 million a year ago.

The company has made proactive changes focusing on enhancing customer engagement and sales strategies to stabilize their growth trajectory.

Management Insights

Eric Shen, Chairman and CEO of Vipshop, commented, "Our business showed signs of stability as we quickly adapted to market demands, particularly emphasizing our apparel categories. The growth of our Super VIP membership program also indicates positive consumer trends."

Chief Financial Officer Mark Wang added, "This quarter showcased our solid profitability and fiscal discipline, as we continue to pursue growth initiatives while optimizing resource allocation. Looking ahead, we anticipate gradual recovery in our revenues and aim to fulfill our shareholder return commitments efficiently."

Financial Overview

Vipshop incurred operating expenses totaling RMB 4.6 billion, which is up by 6.3% year-over-year. Notably, fulfillment expenses decreased slightly, highlighting some operational efficiencies being realized by the company. Additionally, marketing expenditures decreased by 3.3% year-over-year, indicating a focus on sustainable growth over aggressive marketing initiatives.

Future Expectations

Looking forward to Q3 of 2025, Vipshop expects its net revenues to range between RMB 20.7 billion and RMB 21.7 billion, representing a year-over-year increase of around 0% to 5%. This guidance reflects preliminary market assessments and is subject to changes based on evolving economic conditions.

Conclusion

Vipshop remains committed to optimizing its market position, focusing on quality service, and strengthening customer relationships. The company is steadfast in its strategic vision of delivering budget-friendly brands to Chinese consumers while encouraging sustainable measures throughout the organization. For further updates and insights on upcoming developments, stakeholders are encouraged to participate in the scheduled conference call on August 14, 2025.

For more information about Vipshop and its operations, please visit their investor relations website.