Vipshop Beats Expectations, Operating And Gross Margins Contract YoY
Vipshop Holdings Ltd - ADR (NYSE: VIPS) shares rose 3 percent after hours following company's Q2 earnings report. Non-GAAP EPS were $0.17 versus estimates of $0.15. Sales were $2.02 billion compared to estimates for $1.90 billion. Gross profits rose 44 percent year-over-year to $487.7 million.
Gross margins grew to 24.1 percent versus prior level of 25 percent. Operating margins increased 4.8 percent from 4.9 percent the year prior.
Q3 2016 guidance for revenues is in the range of $1.79 billion and $1.87 billion compared with estimates for $1.79 billion.
Chairman and CEO Eric Shen was pleased with the quarter, saying, "Despite the challenging macro environment, we successfully delivered accelerated growth in revenues, active customers and total orders over the past quarter...we also experienced further diversification of our customer base towards younger and more Internet- and mobile-savvy shoppers."
Shares of Vipshop closed Monday's regular session up $0.49 or 3.16 percent to $16.01.
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