Vipshop Beats Q3 Views; Outlook In-Line With Expectations

Vipshop Holdings Ltd - ADR VIPS beat third-quarter expectations Tuesday and offered a fourth-quarter outlook in-line with Wall Street's views.

Vipshop predicted fourth-quarter revenue between $1.2 billion and $1.22 billion, vs. Wall Street's expectation of $1.21 billion.

The Chinese online discount retailer's shares lost 2 percent in the extended session recently, trading at $23.22 per share.

Active customers for the recent third quarter increased by 137 percent 9.5 million from four million a year earlier. Total orders grew 118 percent to 25.5 million.

As a percentage of total revenue, operating expenses increased to 23 percent, from 21.6 percent last year.

Chief Financial Officer Donghao Yang said strengthened cost controls will improve future operational efficiency, although the company plans to continue investments in mobile technology as well as in "merchandizing, marketing and big data."

The company recent third-quarter net income grew to $27.7 million, or $0.05, from $12 million, or $0.02 a year earlier. Adjusted income equaled $0.08 per share.

Revenue increased to $882.6 million from $383.7 million a year earlier.

Wall Street expected adjusted income of $0.07 on revenue of $863.12 million.