#China #Guangzhou #financial results #Vipshop #discount retailer

Vipshop Holdings Limited Financial Results Overview

Vipshop Holdings Limited, a leading online discount retailer in China, has recently published its unaudited financial results for the fourth quarter and full year ended December 31, 2024. The financial performance highlights a mixed bag of outcomes, reflecting both challenges and growth strategies implemented by the company.

Key Financial Highlights for Q4 and Full Year 2024

• - Total Net Revenues: In the fourth quarter, Vipshop reported net revenues of RMB 33.2 billion (approximately US$4.6 billion), a slight decrease from RMB 34.7 billion year-over-year. For the full year, the company's total net revenues reached RMB 108.4 billion (around US$14.9 billion), down from RMB 112.9 billion in the previous year.

• - Gross Merchandise Value (GMV): The GMV for Q4 was RMB 66.2 billion, a slight decline from RMB 66.4 billion in the same quarter of the previous year. However, GMV for the full year saw a modest increase of 0.6%, reaching RMB 209.3 billion, up from RMB 208.0 billion.

• - Gross Profit and Margin: Vipshop’s gross profit for Q4 was RMB 7.6 billion (US$1.0 billion), compared to RMB 8.2 billion in Q4 2023. The full year gross profit equaled RMB 25.5 billion (US$3.5 billion), relatively stable compared to last year's RMB 25.7 billion. The gross margin exhibited a slight decline from 23.7% in Q4 2023 to 23.0% in Q4 2024.

• - Net Income: Net income attributable to Vipshop’s shareholders for Q4 2024 was RMB 2.4 billion (US$335.2 million), down from RMB 3.0 billion in the previous year quarter. For the entire year, the company reported RMB 7.7 billion (US$1.1 billion), compared to RMB 8.1 billion in 2023.

• - Active Customers: The active customer base showed a decline to 45.7 million in Q4 from 48.5 million the year prior. This trend continued with full-year figures for active customers at 84.7 million, down from 87.4 million.

• - Shareholder Returns: The board has declared an annual dividend of US$2.40 per ordinary share or US$0.48 per ADS payable on April 25, 2025. Furthermore, the company executed share repurchases worth US$43.3 million under its existing buyback programs.

Management Commentary

Eric Shen, Chairman and CEO of Vipshop, expressed optimism despite the setbacks, stating that the company exceeded expectations for Q4 2024 and managed to overcome numerous challenges while focusing on enhancing its apparel offerings. The positive traction seen in the Super VIP customer segment, marked by double-digit growth, is seen as a strong indicator of resilient consumer spending and loyalty towards Vipshop’s value proposition.

Mark Wang, the Chief Financial Officer, acknowledged a need for balance in growth and profitability, which led to strategic reallocations of resources. He emphasized the goal of returning to sustainable growth driven by both cash dividends and share repurchases to enhance shareholder value.

Future Outlook

Looking ahead, Vipshop expects its total net revenues for the first quarter of 2025 to range from RMB 26.3 billion to RMB 27.6 billion, indicating a potential decrease of approximately 5% compared to the previous year. This forecast reflects current market conditions, which are subject to change as the company strives to navigate through evolving economic dynamics.

This report provides insight into Vipshop's strategic positioning and operational adjustments as it heads into 2025, reinforcing its commitment to delivering value and adjusting to market trends.

For continuous updates, stay tuned to Vipshop’s investor relations channels and listen to the scheduled conference call on February 21, 2025, where the company will further discuss its financial performance with stakeholders.