Vipshop Q1: 9% Topline Growth Backed By GMV Momentum, Boosts Buyback By $500M, Names New CFO

  • Vipshop Holdings Limited VIPS reported a first-quarter FY23 revenue growth of 9.1% year-on-year to $4.00 billion (RMB27.5 billion), beating the consensus of $3.72 billion.
  • Drivers: Vipshop's GMV increased by 14% Y/Y to RMB48.5 billion. The number of active customers grew by 4% Y/Y to 43.8 million. Total orders increased by 10.8% Y/Y to 184.4 million.
  • Resilient Margins: The gross margin expanded by 160 bps to 21.4%. The non-GAAP operating margin increased by 230 bps to 8.3%.
  • Non-GAAP earnings per ADS of $0.51 beat the consensus of $0.37.
  • Vipshop held $2.8 billion in cash and equivalents. It generated $67.1 million in operating cash flow.
  • Buyback: On May 22, Vipshop boosted its share buyback by $500 million, enabling it to repurchase up to $1 billion of its ADSs.
  • CFO Transition: Vipshop appointed Mark Wang as its CFO, effective May 24. Wang will succeed David Cui, who has decided to resign from this position for personal reasons. Before joining Vipshop, Wang served as the CFO of Benlai Group, an online fresh grocery player in China.
  • Chair and CEO Eric Shen stated, "We are reinforcing our value-for-money perception across our merchandise offerings to keep Vipshop top-of-mind among customers. In addition, we are positioned to expand the base of high-value customers and Super VIP members."
  • Outlook: Vipshop sees Q2 revenue of $3.932 billion (RMB27.0 billion) - $4.106 billion (RMB28.2 billion), representing a year-over-year increase of approximately 10% - 15% vs. consensus of $3.79 billion.
  • Price Action: VIPS shares closed lower by 0.34% at $14.83 on Monday.
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