Vipshop Tops Q1 Expectations, Shares Rise

Shares of

jumped over 4 percent in after-hours trading after the company reported better-than-expected results for the first quarter. Net income attributable to Vipshop's shareholders climbed to RMB367.5 million (US$59.3 million), or RMB0.61 (US$0.10) per ADS, compared to RMB163.2 million, or RMB0.27 per ADS, in the year-ago period. Its non-GAAP net income per ADS came in at RMB0.80 (US$0.13). Its total net revenue rose 100.0 percent year-over-year to RMB8.6 billion (US$1.4 billion), compared to RMB4.3 billion, in the year-ago period. However, analysts were expecting earnings of $0.10 per share on revenue of $1.29 billion. The average estimate among 12 Estimize users was for earnings of $0.12 per share and revenue of $1.38 billion. The number of active customers climbed 75.0 percent year-over-year to 12.9 million in the quarter, while total orders rose 90.0 percent to 38.5 million. Its gross profit climbed 99.6 percent year-over-year to RMB2.1 billion (US$345.4 million). Non-GAAP income from operations gained 96.9 percent to RMB517.3 million (US$83.5 million). Total operating expenses for the first quarter climbed to RMB1.8 billion (US$284.2 million), from RMB904.5 million in the year-ago period. Mr. Eric Shen, chairman and chief executive officer of Vipshop, said, "We are very pleased with our robust first quarter 2015 financial and operational results, which were largely driven by our improved brand recognition among customers, smooth execution of our mobile initiatives, continued operational improvements as well as further enhanced shopping experience, as evidenced by the significant year-over-year growth in total repeat customers" For the second quarter of 2015, Vipshop projects total net revenue of RMB8.7 billion to RMB8.9 billion. Vipshop shares gained 4.28 percent to $27.80 in the after-hours trading session.